If you're preparing to purchase your first home, one of the things that your mortgage lender will require is that you carry home insurance. For those who have never purchased a home insurance policy before, the process can be somewhat confusing. When it comes to personal property coverage, many insurance companies request a home inventory. Here's a look at what you need to know about home inventories and your homeowner's insurance.

Why Should You Create An Inventory?

Even if your homeowner's insurance company doesn't require an inventory, it's still a good idea to create one. A home inventory helps you to assess the value of your personal possessions so that you can be sure that you're getting the coverage that you need to replace your belongings in the event of a total loss. It's easy to underestimate the value of your possessions if you don't take the time to assess what you have.

Should Everything Go On The Inventory?

You might wonder if you should include everything you own in the inventory. While you should account for everything to the insurance company, some things are best addressed in an inventory of their own instead. Your standard inventory should include all of your traditional belongings, such as your clothing, kitchenware, decor, furniture, and other essentials.

However, anything you own that's particularly high in value, including diamond rings, valuable artwork, high-value collections, crystal, or anything else of the sort, should be inventoried on its own and protected through the addition of a rider on your homeowner's insurance. The rider provides separate coverage for the item in question up to the value of the rider.

How Do You Create The Inventory?

The most effective, and comprehensive way to complete an inventory for your home insurance is to start with one room at a time. Work your way through each room independently, writing down everything in each of those rooms. That way, you have a fully detailed, room-by-room inventory that you can easily estimate value on.

This also allows you to have a reference in the event that you experience a break-in. With a room-by-room inventory, you can easily identify anything that may have been stolen.

As you inventory your belongings, take pictures as well. Provide the pictures to your insurance company as well. That gives you the evidence you need to support your replacement costs if you have to file a claim with a home insurance company.