Insuring your home and the contents contained within may sound like a large financial burden, but should something go wrong, you can cover the costs of the loss. It is important to create an inventory of your household belongings to keep track of the total value to be insured.
This inventory should be reviewed and updated annually so that the latest possessions remain covered. Estimating the value of household contents can be tricky sometimes, especially if some of the goods were not purchased by the occupants.
Do some research for accurate estimations
Spend some time researching the value of second-hand goods or inherited vintage furniture to get a more accurate estimate of their insurance value. Remember to include the estimated value of inexpensive items too, such as cutlery and mugs. You’ll still need to replace these if they are destroyed in some way.
Premiums are calculated on the estimated replacement value, so some people may estimate prices slightly lower or leave inexpensive items altogether. However, if the insurance company discovers that your estimated values are too low, they may not cover the full replacement cost if you submit a claim.
On the other hand, if you estimate the value of your home contents too high, you’ll end up paying more in monthly premiums. That is why researching prices is important - it will allow you to find the right balance between premiums and recovery costs.
Keep records of ownership
It is vital that you keep physical records of ownership, such as receipts or photographs. On the inventory, include images, serial numbers, date of purchase and descriptions of each item.
Having the original receipt is a bonus and will help you calculate the accurate replacement cost. Expensive goods such as jewellery and artworks should be evaluated by a professional and a record of the valuation or certificate should be stored and photographed too.
Utilise online inventory software and apps
Nowadays, you can also create an online inventory that gets stored on a remote server. This negates the risk of the inventory being lost in a fire or flood along with your home. These online services will help you with estimations and can be easily updated when new goods are purchased or inflation rates increase.
Take your time when compiling the inventory, especially if you have a lot of goods to insure. You don’t want to overlook any sentimental items in case they are lost for good. Creating the inventory will also alert you to certain goods that you no longer want to keep, so it can be a good exercise in decluttering your home.
Completing the inventory properly and taking the time to document everything will make your life less stressful if you have a fire, flood or burglary and lose your precious household goods.
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