1. The first step is to review your insurance policy. Check to make sure your homeowner's insurance policy contains Replacement Cost Benefits for your contents.  It only costs a few extra dollars per year and is well worth it. This coverage ensures you will be made whole for the amount it actually costs to replace your damaged property.

2. When was the last time you spoke to your insurance agent and got a "check up" to make sure your coverage is sufficient? Most homeowners are under insured and don't know it.

3. Prepare a home inventory list now - before you have a loss. Include a description of each item, its age, replacement cost, where purchased, and if the item was a gift, indicate when you obtained it. Quality Claims recommends an annual family meeting to sit together and compile, or update, an inventory of all of your possessions. For many people, the best time to do this is the beginning of each year, right after the holidays, when you may have lots of shiny new toys, electronics, jewelry and other gifts.

4. Here is an easy and fun way to do the home inventory using your camcorder or video camera. Videotape your house outside and inside or use photos to document your items. Go room by room. Be sure to open drawers and doors to closets. Make sure you take video of your backyard, front yard, outbuildings, fencing, walls, etc., especially if you have invested in extensive landscaping and hardscaping. Store the video or pictures at an offsite location like your office or safe deposit box. Even better, upload it to an electronic back-up system. Let the kids help (or make them do all the work).  Here are some tips for doing this: How to do a Home Insurance Inventory using your Camcorder or Digital Camera

5. 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 flooring, roofing, walls, countertops and other items attached to your home. This is critical information the insurance adjuster will need if your home is destroyed or severely damaged. If you have expensive upgrades - indoors or out, keep records, photos and receipts for those as well.

6. Create an emergency plan. If there is a fire, flood, hurricane or other disaster, who will take care of the pets, or grab the important papers and photos? If you have young children, who will take care of them if needed? If the family gets separated, how will you find each other? If you lose your cell phones, do you know each other's phone numbers?

To help with the preparation of an insurance inventory list, you can download free inventory list spreadsheets from the Quality Claims Management web site at www.qualityclaims.com. If you are using a spreadsheet, you can check off the items one by one. It is a great time saver and helps you remember to include all of the little things you own.

• Boomer Guru Names 10 Best New Years Resolutions for 2011
• Cutcaster 2009 highlights and New Year’s resolutions
• Viewpoint: VMware Should in 2009 Embrace Its Enterprise Middleware Role