How to make a home inventory and review your policy
Make a home inventory for insurance by recording your belongings room by room with photos, serial numbers and receipts, then compare the list with your policy. Check your dwelling limit against rebuild cost, your contents limit, and low caps on items like jewelry. NAIC says to review coverage with your agent at least once a year and after renovations.
Why a home inventory for insurance needs a policy review
These are two halves of one job. The inventory proves what you own. The policy review shows how much of it would be paid for, and on what terms. A long list of electronics doesn't help if your contents limit is too low, and a generous limit is hard to claim against with no record of what was lost.
The term to find first is how your policy pays. Replacement cost pays to rebuild or replace with similar materials, without subtracting for age. Actual cash value subtracts depreciation, so an older roof or sofa pays out far less. The same policy can use different terms for the house and its contents.
When to do a homeowners insurance review
Do your first pass within a few weeks of moving, while boxes and receipts are still at hand. After that, the NAIC recommends checking with your agent at least once a year. Go back sooner after a renovation or room addition, which can raise your replacement cost, and after buying anything valuable.
Dwelling coverage and contents limits to check
These rules of thumb from the NAIC show where gaps usually hide. Your own policy may differ, so find each figure on your declarations page. The dollar examples use a sample home.
| Coverage | Common rule | Sample home |
|---|---|---|
| Dwelling | Insure for at least 80% of replacement value | $350,000 rebuild cost means at least $280,000 |
| Contents | Often 50% of the dwelling amount | $350,000 dwelling means about $175,000 |
| Jewelry and furs (theft) | Commonly capped at $500 | A $4,000 ring leaves $3,500 uncovered |
| Firearms or computers (theft) | About $1,000 | Check before you assume a laptop and desktop are both covered |
| Flood | Not in a standard policy | Separate policy, about $700 a year on average |
How to make a home inventory and review your policy
- Pick your format
Use the NAIC Home Inventory app, a spreadsheet or a shared folder of photos. It lets you record items, scan barcodes and upload pictures.
- Go room by room
Include closets, the garage and storage. Group similar items, then list what stands out by brand, model and approximate age.
- Capture proof
Photograph serial numbers and save receipts for electronics, appliances, tools and anything valuable.
- Pull your declarations page
Find the dwelling limit, contents limit, deductibles and whether each pays replacement cost or actual cash value.
- Compare the two
Total your contents, then look for items above your theft limits. Ask your agent for a Scheduled Personal Property Endorsement for those.
- Ask about the gaps
Ask for prices on flood, earthquake, higher liability and guaranteed replacement cost, and decide what fits your area.
- Store it and set a reminder
Keep a copy off site, share one with someone you trust, and add a yearly review to your calendar.
Homeowners insurance gaps that vary by region
Your risk decides which gaps matter. Standard policies leave out flood and earthquake everywhere, but the price and need for add-ons differ a lot by region. Plumbing leaks and leaky roofs are usually covered. Ground water, rain runoff and snowmelt are not. The NFIP or a private insurer can sell flood coverage. Earthquake endorsements are often inexpensive in some areas, and the NAIC points out that the New Madrid fault runs through the Midwest, a region many people don't think of as quake country. Your state insurance department can help if you have questions about a policy or claim.
Home inventory for insurance mistakes to avoid
- Using the sale price as your dwelling limit. It includes land, and rebuild cost can be higher or lower. Ask your agent how the estimate was built.
- A policy that carried over old details. Tell your agent about upgrades, a home office, a new roof or a finished basement.
- A roof paid at depreciated value. The NAIC calls full roof replacement cost the most important part of guaranteed replacement coverage.
- Picking a low deductible by habit. A higher deductible lowers your premium, if you could pay it from savings.
- Keeping your only copy in the house. A fire takes the list too.
What homeowners say about how to make a home inventory
Film the inventory twice: at the old place before packing and at the new place after unpacking. Moving is when things break or go missing, and the first video shows what you owned and its condition. (Reddit)
Home inventory and personal property coverage questions
Do I need to list every item in a home inventory?
No. Group ordinary items, such as kitchenware, and give detail for valuable ones. Receipts and serial numbers help most for electronics, appliances and jewelry.
How much personal property coverage do I need?
Contents coverage is typically about 50% of the dwelling amount, but your inventory is the better guide. If your items are worth more, you can often raise the limit for a small extra charge.
Does homeowners insurance cover flooding?
No, not in a standard policy. You'd need a flood policy through the National Flood Insurance Program or a private insurer. Water from a burst pipe or leaky roof is usually covered, so ask your agent where the line falls.
Sources: NAIC
General guidance for U.S. homes, not professional advice. For gas, electrical and structural work, call a licensed pro.