Home inventory for insurance: what adjusters need and how to make one

A home inventory for insurance is a list of what you own, with photos, descriptions and replacement values, kept somewhere that survives the loss of the house. Adjusters use it to settle a contents claim; you use it before that to check whether your policy's contents limit is anywhere near what you actually own. Most people do not have one because the manual version is a weekend of typing. The rest of this guide covers what it must contain, the two valuation terms that matter, the limit to check, and how to build it quickly.

What an adjuster asks for after a loss

The claim form is some version of the same table: item, description, quantity, age, where it was purchased, purchase price, replacement cost. Supporting evidence is what moves a line from “claimed” to “paid”: a photo of the item in your home, a receipt, a serial number, a credit-card statement, an appraisal. The adjuster does not need your valuation to be exact. They need to believe the item existed, know what it was, and have a starting point for what it costs to replace.

Three consequences follow. Photos of rooms are worth more than photos of items, because they prove context. Descriptions with brand and model beat descriptions without. And the list should be complete rather than precise: forty items with rough values beat six items with receipts, because the thirty-four you forgot are money you don't get.

Replacement cost versus actual cash value

Replacement cost value (RCV) is what a new item of like kind and quality costs today. Actual cash value (ACV) is that number minus depreciation for age and wear. A six-year-old sofa that costs $1,800 new might have an ACV of $700. Which one your policy pays is printed on the declarations page, and it is the single most important line on it.

Record replacement cost in your inventory. Depreciation is the insurer's calculation, applied from tables, and it changes with the item's age at the time of the claim. Replacement cost is the stable number, and it is what you compare with your limit. AI Home Inventory estimates replacement cost as a range for exactly this reason, and it labels the ranges as estimates rather than appraisals.

The contents limit, and why most homes are under it

On a standard US homeowners policy the contents limit is Coverage C, personal property. It is commonly set by formula, often 50 to 70 percent of the dwelling amount, unless someone changed it. Renters policies state it directly, because contents are the whole policy. Either way it is a number nobody measured. The inventory total is the measurement.

When people total their contents for the first time, the usual finding is that the limit is low, and the usual cause is the stuff nobody thinks of as valuable in aggregate: kitchen contents, clothing, books, tools, linens, the garage. A room-by-room total makes that visible in an afternoon. If the total exceeds the limit, raising Coverage C is normally inexpensive; ask your agent. Some items, typically jewelry, art, instruments and collectibles, have their own sub-limits inside Coverage C and need a rider or floater to be covered at full value.

How to build the inventory in an afternoon

1. Photograph each room from two corners. Doorway first, then the opposite corner. This is the record of what was where.
2. Open every closet, cabinet and drawer that holds anything worth money and photograph the inside. Closed doors are where inventories fail.
3. Get an itemized list from the photos. This is the step AI Home Inventory does: it lists each item with a replacement-cost range and marks the ones that need a close-up. By hand, expect an evening per two rooms.
4. Close up the valuables. Labels, model plates, serial numbers, receipts. Anything over about $500, and all electronics.
5. Add what the camera can't see with typical values: kitchen drawers, linen closets, the contents of a dresser.
6. Get appraisals for jewelry, art and collectibles. No photo values those, and neither does any app.
7. Total it, compare with Coverage C, and send the PDF to your agent. Then put a reminder in for renewal.

What to record for each item

Name, quantity, brand or model if known, condition, purchase date if known, replacement cost or a range, and a photo that shows it in the room. Serial numbers for electronics and appliances. For anything with a receipt or appraisal, attach it to the item rather than filing it elsewhere; the item is what you will be asked about.

Where to keep it

Off-site, and in a form you can send. An app that stores the inventory with your account, a cloud folder, or the PDF emailed to your agent and to yourself all work. The binder in the hall closet and the photos on a phone that was in the house do not. If you use AI Home Inventory, the inventory is kept with your account, and the report goes out through the share sheet; free for 2 rooms, US$49.99 once for the whole home.

Continue with the room-by-room checklist, or the renters guide if you rent.