When is a personal asset inventory useful?
There are several situations in which a personal asset inventory is very useful, if not vitally important:
1. Home burglary
When faced with a break-in, the experience can be overwhelming and chaotic. Often, people have trouble identifying everything that was stolen.
By having a comprehensive record of your belongings, you can easily identify any missing items you may have overlooked initially. Then, you can accurately report all missing items instead of noticing something is missing days, weeks, or months after the break-in.
Having an inventory can expedite the insurance claims process and increase the chances of recovering the value of the stolen items.
Overall, a personal asset inventory brings clarity, efficiency, and peace of mind in the aftermath of a home burglary, helping you navigate the difficult situation with greater ease and confidence.
2. Catastrophic event
A fire or natural disaster can destroy your home and everything inside. Like a home burglary, you may need help remembering everything you owned.
If this happens, there is no better way to approach your insurance company than with an itemized inventory of your home’s contents.
With a personal asset inventory, you’ll have a premade list of all your destroyed belongings so you can immediately make an accurate insurance claim.
Most personal inventory apps store a copy of your records in the cloud, so you don’t have to rely on a physical copy.
3. Estate planning
While a Last Will and Testament outlines how you want your estate to be distributed after you pass away, it rarely contains an extensive list of your personal items.
Having such a list can be very helpful when estate planning and deciding who you want to inherit your possessions. In addition, an asset inventory could help your executor and loved ones after you pass away because they’d already have a working list of all your physical assets.
Some inventory apps let you export your information as a file which you can print or store on a drive. You could include the printed copy or drive with the rest of your estate planning documents.
If you’re moving to a new home, especially a long-distance move to a different city or state, having a detailed inventory of your possessions can be useful. An asset inventory can help you identify if anything went missing once you’ve unpacked your things.
5. Lending out items
Do your friends or family members regularly borrow books from your collection? Or, do you occasionally lend or rent a power tool to your neighbor? Many home inventory apps let you highlight items you’ve loaned to others so you don’t forget about them or wonder where they are.