What should make the master list? Whatever's not nailed down, from furniture and rugs to furs, dishes, and jewelry. If you kept the receipt when you bought these items, great; jot down the value. If not, note where and when you got it.
Then photograph, or better yet, video every room, from every angle. Burn the information onto a couple of disks and send one copy for safekeeping to Aunt Becky on the other side of the country. A tip: Go to knowyourstuff.org
for free software that lets you create a virtual replica of your home online and then tally the value of what's in it.
Then make sure you get the right insurance by reading Homeowner's Insurance 101