If your home and belongings were destroyed by a natural disaster, how easy would it be for you to remember each item in your home? Would you be able to describe each and every possession your family has accumulated over the years and then estimate how much it would cost to replace each item today?

For most of us it would be an impossible task. However, after suffering a loss after a disaster, that is precisely what an insurance company will require you to do if you file a recovery claim.

After your property is destroyed by fire, flood, earthquake, windstorm or other disaster, you’ll need to help your insurer calculate your loss to maximize your insurance claim. The insurance company will request a detailed inventory of all damaged and/or destroyed property. The list should include a description of the item, how old the item is, and the cost to replace it today.

You will even be required to separate your damaged property from your damaged property. Have you ever considered where you could store all your damaged goods?

After a disaster, you’ll have more important things to worry about than completing a lost and found inventory. The process of searching through all your broken things is not only tedious; it can be unpleasant and painful.

We recommend an annual family meeting to sit down together and compile or update an inventory of all your possessions. For many people, a good time to do this is the beginning of each year, right after the holidays, when they can have lots of shiny new toys, electronics, jewelry, and other gifts.

You will need to scan each room, identifying each item. To help with this, you can download free inventory list spreadsheets. If you’re using a spreadsheet, you can check off items one by one. It’s a huge time saver and helps you remember to include all the little things you own.

A fun way to accomplish this, and probably the easiest and fastest, is to use a video camera or camcorder to make a video recording of your property. While recording the video, describe to the viewer what they are seeing.

Go room by room. Start in the master bedroom: Open your closets and slowly pan through your clothes, shoes, and other items hanging there. As you look at the contents of the closet, you can elaborate on details like, “Here are five business suits, 12 pairs of pants, and 12 blouses, worth about $2,500.” If you have expensive or hard-to-replace items, be sure to draw attention to them and record a clear image.

Open your drawers and place smaller items like jewelry, watches, and personal items on your bed and photograph them. It’s helpful to have your complete inventory list on hand with detailed item and pricing information. Ideally, one person should operate the camera while the other person reads the list.

· Do not forget the garage or the kitchen. Be sure to get out those prized tools, pots and pans, Christmas decorations, etc., and document them too.

· If you have outbuildings or have invested in landscaping, make sure everything is on video. Open the shed and film or photograph anything inside it.

· There are several technical issues to consider: 1) Make sure there is enough light in the room so all items can be seen properly and that you are close enough to the video camera so your voice can be heard, 2) ) Make sure there is a tape, flash disk, or other storage device in the camera, and 3) Remember to start with a fully charged battery so you don’t have to stop halfway to recharge.

· Make it fun. Get the kids involved. Make it a family project. Make sure they help you when you are in your room by taking videos of your furniture, toys, computers, cameras, and other possessions. You could say, “Santa bought this computer last Christmas for Maria. It would probably cost us about $350 to replace it.”

· When you’re done, watch the video yourself to make sure you haven’t missed anything, the images are clear, and then MAKE COPIES. Burn a few copies to DVD or removable hard or flash drives, and keep them in your safe deposit box, in a secure drawer at work, and maybe send a copy to a family member. You can also post it to an online data storage site. If you’ve completed a written spreadsheet, keep copies off the site along with the video.

Some people feel uncomfortable talking on camera. Keep in mind that you’re not trying to win an award for making a movie. You are only making a documentary record of your possessions. If you make a mistake, you can always re-record it. Hopefully no one will ever have to watch this video again.

Here are some more tips to make the process easier and more effective.

1. To find out how much it costs to replace items in your inventory list, you can “shop online” to see how much it would cost to buy a similar item now.
2. Confirm that your homeowners insurance policy contains a replacement cost endorsement for your contents. It only costs a few extra dollars per year and it’s worth it.
3. If you received a real estate appraisal when you bought your home, make a copy and keep it with your contents inventory information. An appraisal should contain a floor plan as well as descriptions of the floors, ceilings, walls, countertops, and other items attached to your home. This is critical information that the adjuster will need.
4. Finally, if you have a loss, keep in mind that the insurance company will apply depreciation to each item based on the age of the item. Depreciation will reduce the amount of money you’ll be paid until those items are actually replaced. Once replaced, you will need to provide receipts showing that you spent the replacement cost amount for the items in order to be funded for the difference.