Clearing the clutter
Most Americans have a junk drawer – or two. Our lives are full of work, obligations and above all, stuff. The average American home has around 300,000 items in it, so it’s natural for clutter to accumulate.[1]
While a bit of disorganization is normal, it’s still important to clear out the clutter every once and a while so you can focus on what truly matters in your life. Plus, taking a complete home inventory can prove invaluable should you ever need to file a home insurance claim. In case of a fire, a robbery or natural disaster where your belongings are damaged or destroyed, the home inventory makes it easy to get back on your feet. (Oh, and damage from a flood is not included in home insurance, so you should also take this time to ensure you have the right coverage for your needs.)
Taking inventory of your home can also help get rid of documents and knick-knacks you don’t have a use for any longer. Some of the most overlooked items in the home are important financial documents that should be protected in the event of a fire or robbery. By organizing your papers, you help ensure they’re stored safely, and may even realize you’ve been holding on to documents you no longer need.[2]
Keep reading to learn which documents you actually need to hang on to, and how to take inventory of your home.
How long to keep documents
Whether you keep your important documents in a folder or a fireproof safe, now might be the time to go through them and make sure you have the essentials protected and the unnecessary papers removed.
Though, in general, you don’t need to keep receipts or bills after you ensure a card statement is correct or a bill is paid, you should hold on to any documents relevant to filing your taxes.[3] These exceptions include: medical bills, utility bills for a home office or receipts for large purchases or work-related expenses
In addition, you should never get rid of documents from important life events such as:
- Social Security card
- Birth certificate
- Marriage certificate
- Will
- Adoption papers
- Death certificates[4], [5]
Here’s how long to keep every type of document:
How to create a home inventory checklist
Whether moving to a new place or just taking stock of your current home, having a record of your valuables is important if you ever need to file an insurance claim. It’s also critical to ensure that you have enough personal property insurance.
Here’s how to account for the contents of your home:
1. Break up the task by room
Since it may be daunting to inventory your entire house, make the task more manageable by breaking up your home inventory by room. This helps simplify the task and streamline a claims process if only a certain room was damaged or robbed.
Though it there’s no ‘right’ place to start, it may be easiest to begin in a small, contained area like a jewelry case or entertainment center. Remember to account for valuable items in your backyard or lawn, like an equipment shed.
You may also want to note items in storage. Though there are often insurance limits on off-site items, it’s still important to include valuables kept in a place away from your primary residence.
3. Take photos or video
One of the best ways to inventory your home is right in your back pocket: Your phone. Photos and videos are an easy way to create a record of your property. In addition to a written inventory, consider taking photos of important closets, drawers or storage areas to supplement your list. A video walkthrough is another great way to record your home’s contents. While you record each room, consider talking aloud about which items are currently being recorded, their brands and models and when you bought them.[2]
4. Understand what your insurance covers
Once you understand the value of the items in your home, it’s time to look into your insurance policy. Whether you’re getting insurance coverage for the first time or simply updating it, it’s important to check that your big-ticket items have the amount of coverage that you’re comfortable with.
How to protect your important documents
Just as important as your expensive electronics or valuable art, your financial and personal documents contain critical information that you should safeguard. Here’s how to protect them:
Fireproof safe: To protect your essential documents like your passports and birth certificates, consider a fireproof safe. The fire safety rating of the safe you choose will depend on how close you are to the nearest fire department, and if you’re storing electronic documents, which are even more sensitive to heat.[6]
Cloud storage: For documents that only exist digitally, save copies in the cloud or in secure online storage. Use safety measures like a firewall or secure passwords to ensure your files are safe.[7]
Plastic bags or page slips: For items you want to keep safe from water damage or mold, consider sealable plastic bags. This is a simple way to add an extra layer of protection to the documents you keep at home.
Home filing cabinet: Proper home organization is in itself a method of protecting your documents. A filing cabinet ensures papers stay in good condition and that you can easily find them when you need them.
An in-case-of-emergency grab bag: Consider creating an emergency grab bag or binder that contains all your must-have information, like account numbers, where to find important documents and contact info for your power of attorney.[8]
Wrapping up
Whether it’s the sports equipment tucked away in your garage, a brand-new computer or loan documents filed in a cabinet, it’s important to make sure that the items in your home are accounted for – and protected. Take this time to inventory your home, and make sure you have the best home insurance coverage to protect your stuff.