Life happens. Houses can flood, burglars may break in, phones could get dropped in toilets, fried chicken may turn into a fire in the kitchen.
Contents insurance is all about protecting the stuff that you care about so you’ve got one less thing to worry over. But lots of people struggle with one tricky question when arranging their contents insurance policy
How do I work out the value of my contents?
There are a couple of simple ways to calculate the value of your contents, and it’s up to you what method you use. Check out our thoughts below.
Option one: Guesstimate
Most people don’t know the total value of their contents and they’d rather not take the time to work it out bit by bit. If that’s you, then you can save time and make it easy by simply guessing the value.
This option may be easier but it’s also riskier. If you underestimate, your insurance policy might not cover the cost of replacing all of your items if something happens. If you overestimate, you may pay a higher premium than necessary.
Option two: Item by item
If you’ve got the time, it’s a good idea to walk around your house and add up the cost to replace major items like your TV, couch, fridge, laptops, tablets and phones. You should also consider the total cost of less obvious stuff like your cutlery, clothes, kids’ toys and house plants.
By doing this, you give yourself the best possible chance of estimating the value of your contents correctly and getting the right level of cover.
What else do I need to know about contents insurance?
Once you’ve got the right level of cover there are a few things you can do to improve your chances of a successful claim:
Read your policy document
Before securing insurance, you should always read your policy document to make sure you understand what you’re covered for. If it looks like gibberish, give us a call and we’ll help you understand it.
Declare high-value items
Each insurer has a different policy but as a general rule, every item with a value over $3,000 has to be declared as a part of your policy.
Keep proof of ownership
When the unexpected happens, your insurer will want as much proof as possible to verify that the items you’re claiming for belong to you. To make the claims process easier, it’s a good idea to keep photos of high-value items in your home, alongside proof of purchase.
If you’ve got collector’s items or high-value items, it’s a good idea to get them valued once a year, especially if they are increasing in value over time. That way, if you have to make a claim, you’ll have proof of the item’s current replacement value on hand right away.
Contents insurance can be an absolute lifesaver when the proverbial hits the fan. It takes the financial pressure off you and makes it easier to get back to where you were before the event. To make sure you value your contents correctly and get the right level of cover, have a chat with one of our friendly insurance advisors at Money Empire.