Creating a household inventory is something most people don't typically do, even though it serves two important purposes. First, a detailed inventory allows you to identify any shortfalls, or deficiencies in the amount of insurance coverage you carry. Second, if you experience a catastrophic situation, you'll have a much easier time with the claim process. Do you suppose you'd remember each and every detail after the disaster? Probably not.

If you should face the unfortunate reality of a burglary or house fire, your insurance carrier will want some verification of your lost property in order to provide coverage. Your detailed inventory will be crucial to your ability to accurately define your losses.

Your inventory should include as much detail as possible. Attempt to record the following information for each item:

• Quantity
• Description (photograph or video, including any special markings)
• Purchase price and date
• Copies of bills or receipts, if possible
• Serial numbers
• Professional appraisals, if applicable

Include in your inventory the contents of each room, including every detail. Provide colors, dimensions, manufacturers, and materials, if you can. If you imagine yourself taking an inventory of one room in your home, are you including the contents of every drawer and closet? To get the complete picture for your inventory, imagine you are packing to move. Every item that you wrap and put into a box needs to be listed on your inventory. If it seems too overwhelming to list each and every sweater, list the sweaters in groups by type of fabric. When you find that special cashmere sweater, itemize that single sweater by itself. Don't forget your attic, basement or garage. Each of those areas is probably full of stuff for your inventory.

Are you already exhausted by the thought of putting this inventory together? Start with your most valuable possessions. Take photographs or a video of those items individually and in the rooms where they reside. Working room-by-room will be more manageable than attempting to inventory everything at once. Hopefully, you'll never have to use the inventory for anything other than keeping it updated on a yearly basis. Remember, you'll want to include new items in the inventory as they are purchased.

As a final thought, give careful consideration to where you keep your inventory. The ideal storage place for the inventory is at the bank in a safe deposit box. If your possessions are destroyed and you've kept the inventory at home, it will be gone, too.

It may take time to create your inventory, but you'll find it to be well worth it. Don't put off until disaster strikes. Start your inventory now and if you experience property loss, you'll be able to provide your insurance carrier with an exact list of your things.

This article is one in a series about homeowner's insurance. For more information on other facets of insuring your home, see the related articles listed in our Library.