If you end up suffering from damages, having a complete inventory of your current belongings can make your claim a lot more manageable. Making a list can also help you determine how much coverage you will require based on the value of your belongings.
To make your inventory list, make sure you walk through every room of your house including any outdoor spaces such as a patio or garage. For each item, note the made and model, the age, and how much you paid for it. Keep any receipts and warranties of large purchased items.
To document your inventory, store your list in a safe zone such as a safety deposit box or online in a cloud storage drive. Taking photos of individual items or rooms can also help. Update this list every year to ensure it remains accurate and that your current policy is giving you enough coverage.