Why All Homeowners Should Create a Personal Property Inventory

In the case of property damage due to accidents, crimes, or other unexpected events, insurance companies will demand a detailed account of what’s been lost. Recalling these details can be taxing, but it is an essential part of the claim process. Getting it right is the key to getting what you need to rebuild.

There’s no denying the serious emotional weight that comes from losing possessions or property after a major disaster. It hurts the heart—and to add insult to injury, you’ll need to relay an itemized list of the damages to your insurance company in order to get any compensation for what’s been lost. 

In the aftermath of disaster, effectively listing and pricing out your lost items is an emotional and logistical challenge. That’s why we always recommend preparing in advance, before the unexpected happens. Creating what’s called a personal property inventory, or PPI, can be an immensely helpful tool when speaking with your insurance company. 

A PPI can be a simple spreadsheet where you record, item by item, the contents of each room in your house (or place of business). You’ll want to note the item, its monetary value, its age, and its provenance (or where it comes from—for example, an antique side table that came out of your great-grandmother’s house). If you’re able, take photos of receipts for large purchases and upload the files into the spreadsheet as proof of purchase. 

It may help to think of it like a treasure hunt! Go room by room through your home, and take note of all the furniture, electronics, light fixtures, and other belongings in each room. Start by simply noting down each item—and then, once you’ve got your property list, you can begin the process of filling out the spreadsheet. 

This may sound like a major chore—but the good news is you’ll only need to do it once! After you’ve made the list, you can update it as you purchase new home goods (or remove items, as you enter garage sale season). Remember that you are saving yourself extra emotional stress in the event of fire, flood, or storm damage—and helping ensure that you’ll get a fair payout if a disaster were to happen.