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How to Choose and Use Home Inventory Software

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Why You Need Home Inventory Software
Home Inventory Software for Insurance, Moving, Net Worth, Estate Planning

Document Valuable Personal Items with Home Inventory Software

Meredith Heuer / Getty Images
It's vital to have an inventory of personal items like clothes, gemstones, electronics, furniture -- the list goes on. Without this documentation, establishing insurance claims can be very time consuming and frustrating. This software is also very useful for documenting estates for inheritance, establishing you net worth and ensuring that you have the right amount of insurance coverage for your belongings. Finally, using home inventory software is much more convenient and flexible than creating a hand-written inventory.

Better Organization
Home inventory software categorizes or tags items in each room. For example, in the master bedroom, you might inventory furniture, jewelry and antiques. With the software, you can run a report on the master bedroom, just jewelry you own or just antiques. In other words, you can break down reports by property, room or item classifications.

Establish Resale Value
Redecorating and replacing systems such as central air conditioning adds to the value of your home. Making permanent changes also adds to the cost basis of your home, reducing capital gains taxes when you sell, and you will need documented proof of these expenses to take advantage of this.

Moving Checklist
Take inventory while you pack, then check items off as you unpack the boxes to ensure that the movers delivered everything you own.

Substantiate Insurance Claims or Tax Losses
Home inventory software should store digital images of paper documents like receipts and warranties, and photos of your belongings. This information can be used for insurance claims or to claim income tax losses should you suffer a loss.

Overinsured or Underinsured?
Assign a value to items entered into home inventory software you get a total value of all belongings with a couple of mouse clicks. Use this total to determine how much home owner's insurance you need for adequate coverage.

Net Worth
Having your belongings cataloged with values gives you a more accurate assessment of your net worth.

Next: How Secure is Home Inventory Software?

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