Paul Sanchez
When taking out home contents insurance, it's important to know how to value your possessions to ensure you're paying the right price for your premiums and getting the peace of mind you're looking for. The estimated value you give to your insurance provider will be the maximum amount they can pay out if all your possessions are destroyed, so it's crucial to be as accurate as possible.
| Characteristics | Values |
|---|---|
| How to calculate the value of your house contents | Make a list of all your possessions and the cost to replace them as new, then add all the costs together. |
| How much contents insurance you need | Enough to cover the cost of replacing your possessions if they are stolen or your home is damaged or destroyed. |
| What to include in the estimate | All your possessions, including items in garages, sheds, attics, basements and gardens. |
| What not to include in the estimate | Fixtures and fittings covered under buildings insurance, such as walls, windows, roofs, fitted wardrobes, kitchen and bathroom suites. |
| How to accurately estimate the value of your home contents | Go from room to room, making a list of all your possessions and their value. |
| How often to update your contents insurance cover | Review the total value of your possessions regularly, especially after a change in circumstances. |
| Proof of value | Receipts, serial numbers, purchase dates and condition. For items without receipts, use online valuations or auction catalogues. |
| Best way to prove an object's value | Original purchase receipt. |
| How to avoid underinsurance | Don't put in a low estimate to cut down costs. Always get insurance for the full value. |
What You'll Learn
How to calculate the value of your home contents
To calculate the value of your home contents, you'll need to make a list of all your possessions and then estimate their total value. This will help you pay the right price for your insurance premiums and ensure you have the right level of cover.
Contents insurance will cover the cost of replacing your personal possessions if they're stolen or damaged. The level of cover you need depends on the total value of the items in your home.
To calculate the value of your home contents, you should:
- Go from room to room, making a list of all your possessions. Include items in attics, basements, sheds and garages.
- Estimate how much each possession is worth. If you don't have receipts for all your possessions, use the internet or shopping catalogues to help you work out the cost of each item.
- Get up-to-date valuations of jewellery and other high-value items.
- Add up the cost of all your items to get your estimate.
What to include in your home contents valuation
When calculating your contents, make sure you include the following:
- Furniture and white goods
- Clothing, shoes and jewellery
- Audio and TV equipment
- Laptops, mobiles and tablets
- Toys, books and games
- Cooking utensils, cutlery and crockery
- Oven, microwave, kettle and toaster
- Garden furniture, tools and equipment
Adding up the total for every room
To get your total for each room, review each item on your list and note how much it would cost to replace. If you're unsure, you can do an online search for the make and model of an item to get the right valuation.
Use a calculator or spreadsheet to total the individual items for each room. Then add all the room figures to get the total value of your home contents. This is the figure you will need to take to your insurers.
Dashcam Discounts: Do They Impact Farmers' Insurance Policies?
You may want to see also
What to include in the estimate
When estimating the value of your home contents, it's important to consider all your possessions, not just the items that are likely to be taken in a burglary. Some items are unlikely to be stolen but could be destroyed or damaged by fire or flooding.
The only things you don't need to include in the estimate are fixtures and fittings that are covered under buildings insurance. This includes walls, windows, roofs, and anything secured to the walls or floor, like fitted wardrobes, and kitchen and bathroom suites.
- Furniture, including lamps, cabinets, sideboards, bookcases, sofas, and chairs
- Antiques, artwork, and ornaments
- Electronics, such as TVs, stereos, and laptops
- Kitchen appliances, including the oven, microwave, kettle, toaster, fridge, and freezer
- Food stored in the freezer and cupboards
- Kitchenware, such as pots and pans
- Freestanding appliances, like washing machines, tumble dryers, and dishwashers
- Bedroom furniture and linen
- Cutlery and crockery
- Books, DVDs, and games
- Jewellery and similar items
- Coins, medals, or stamp collections
- Cosmetics and toiletries
- Garden furniture and ornaments
- Items stored in sheds or other outbuildings, including play equipment, barbecues, bikes, tools, and gardening equipment
- Items in attics, basements, and garages, such as lawnmowers, tools, or outdoor furniture
- Items currently out of the house, e.g., with friends, family, or at a second home
- Wine and other items in your cellar
- Clothing and shoes
Insuring Your Home: A Shopping Guide
You may want to see also
How to get accurate valuations
The best way to calculate the value of your home's contents is to make an inventory of all your possessions. Go through each room, including attics, basements, sheds and garages. Make a list of all your possessions, including items stored away in cupboards and drawers.
For items with no receipts, try to get a value online or through auction catalogues. For artworks, jewellery and clothing, it's worth getting a professional valuation as these can change over time.
For each item, give an estimate of its value. The value of an item for insurance purposes is usually the amount of money it would cost to replace the item today. Many contents insurance policies work on a ''new for old' basis, so if your computer is five years old, it would be replaced with a new model of equivalent spec.
You don't have to value each item individually. For collections of DVDs, books or clothing, you can give one figure. The estimated cost doesn't have to be accurate, but it's important to be as precise as possible.
Once you have the entire list, start working out the value. You can use a calculator or spreadsheet to total the individual items for each room, then add all the room figures to get the total value of your home contents. This is the figure you will need to take to your insurers.
Remember to review your estimations regularly so your contents insurance coverage remains accurate.
When the Sun Rises: Farmers Mutual Insurance in Palmyra, Missouri
You may want to see also
What to do if you don't have receipts
When it comes to making a claim on your home insurance, you'll need to be able to prove a few things to your insurance company: that you owned the item in question, and its value. While providing receipts is the simplest way to do this, there are other methods to prove ownership if you don't have them.
Other Methods of Proving Ownership
- Check with the retailer: If you can't find your receipt, consider contacting the store you bought the item from. They may be able to send you a duplicate receipt.
- Bank statement: If you used a debit or credit card to purchase the item, a bank statement may show the transaction.
- Photos and other evidence: Photos can be helpful in proving you owned an item. A close-up is best, but even photos of your home where the item is in the background may be useful.
- Instruction manuals: These can be used as supporting evidence.
- Accessories for an electronic item: For example, chargers, remotes, or spare parts.
- Valuation from a qualified professional valuer: Particularly useful for items such as jewellery, watches, paintings, and sculptures.
- Manufacturer's box: Boxes often have barcodes or serial numbers that can be used to identify the product.
- Certificate of authenticity: This can be used to prove the authenticity and value of an item.
- Proof of inheritance and a full description: This includes the brand, model, and any other relevant details.
Assessor's Judgement
If you're unable to provide any of the above, the claims assessor may make a judgement call based on the premise that a reasonable person would own the item in question. For example, if there are dangling cords around a bare TV stand, it's reasonable to assume that a TV has been stolen. However, without evidence of the make and model, you may only be compensated for a basic set, rather than a top-of-the-range model.
Cattle Conundrum: Unraveling Insurance Options for Farmers
You may want to see also
How to avoid underinsuring your home
Underinsuring your home can be a costly mistake. If you underestimate the value of your possessions and your home, you may end up having to pay more than necessary in the event of a claim. Here are some tips to help you avoid underinsuring your home:
Know what's covered
First, check your current policy to understand what is and isn't covered. Many insurers put a limit on the value of a single item, typically around £1,500. If any item worth more than this limit is damaged, you will only receive the amount of the limit as coverage. If you have a lot of valuable items, consider a specialist insurer.
Make a detailed list of your possessions
Go through your house room by room, writing down everything of value. Include items in attics, basements, sheds, and garages. If you have large collections of smaller items like books, DVDs, or clothing, count them and give them an average value. Use a notepad or spreadsheet to keep track of your inventory.
Determine the replacement value
For each item, estimate how much it would cost to replace it at today's prices. This may be different from the price you paid for it. Many insurers work on a ''new for old' basis, so you would receive the cost of a new replacement item of the same quality, not the current market value. Online searches or shopping catalogues can help you find the current replacement cost.
Get up-to-date valuations for high-value items
Items like jewellery, antiques, and collectibles can change in value over time. Get professional valuations for these items to ensure you have an accurate estimate of their worth. Your insurance provider may have a maximum amount they are willing to pay out for any single item, so make sure to declare any items above this limit separately on your policy.
Add up the total value
Once you have estimated the value of each item, use a calculator or spreadsheet to total them up and get the overall value of your home contents. This figure will help you determine the level of coverage you need to avoid underinsuring your home.
Farmers Direct Insurance: Unraveling the Benefits and Coverage for Agricultural Communities
You may want to see also
Frequently asked questions
Go through your house room by room, listing out all your belongings and calculating what it would cost to replace them as new. Then, add all the costs together to get the total value of your house contents.
Include all your possessions, not just the more valuable items. You can exclude fixtures and fittings that are covered under buildings insurance, such as walls, windows, roofs, fitted wardrobes, and kitchen and bathroom suites.
The value of an item for insurance purposes is usually the amount of money it would cost to replace the item today. Many contents insurance policies work on a 'new for old' basis, meaning an old item would be replaced with a new model of equivalent specification.
Most contents insurance policies will have a maximum limit for any single item, typically around £1,500 to £2,000. You'll need to declare items above this limit separately on your policy. Get up-to-date valuations for high-value items such as jewellery, as their value can change over time.
Review your contents insurance regularly to ensure it remains accurate. For valuable items like jewellery, consider getting a re-evaluation every three to five years. Also, update your policy when you acquire new high-risk items.
