How to Value Your Contents for Home Insurance

Key takeaways

• Accurately valuing home contents is essential to ensure you're not underinsured and that you're not paying more for your cover than you need to

• Regular updates and comprehensive inventories of home contents, including high-value items, are crucial for maintaining accurate insurance coverage and facilitating claims

• Annual reviews of contents insurance policies are recommended to adjust coverage for new acquisitions, value changes, or significant life events

How to value your contents for home insurance

To value your home contents, your first step is to list all possessions. It's important you don't leave any rooms out, so be sure to sweep your attic and basement, as well as outbuildings, such as sheds and garages.

To help compile the list, you may want to use one of the many apps available for this purpose, such as Home Contents or Nest Egg. Be sure to pay particular attention to high value items you own.

Got everything? Now your job is to note their current market value or replacement cost. Ideally you'd have receipts already stashed for this. But if you don't, use the internet and retailers' catalogues to help determine values.

Once you've signed up for cover, be diligent about informing your insurer about any significant, additional purchases you make. You'll want to ensure these are covered too.

How much should I insure my contents for?

There's no hard and fast answer for this and the truth is that how much cover you require depends entirely on what you own. And what those possessions are really worth.

To find out categorically how much cover you require, you'll need to rigorously and comprehensively evaluate the total value of your possessions. This includes items like furniture, appliances, personal items, and electronics.

Of course, you'll need to make sure the sum insured reflects the cost to replace all items at current market prices.

High value items

• Identify your high-value items. High-value objects typically include jewellery, art, antiques, and high-end electronics. Their value often surpasses standard home insurance coverage.

• Consider a separate policy. Special insurance considerations may be necessary for these items. It's not sufficient to add them to a standard home policy. You may need additional coverage or a separate policy for valuables. This ensures that insurance payouts reflect their true market value.

• Get an appraisal. Got a particularly high value item or an antique? An appraisal provides a documented estimate of an item's value. This is vital for adequate insurance cover and for claim substantiation. Regular re-appraisals are recommended as values can change over time.

What to include in your contents insurance estimate

Among the items, your home contents insurance estimate include are:

• Appliances

• Art

• Clothing

• Collectibles

• Electronics

• Furniture

• Jewellery

• Kitchen gadgets

• Linens

• Sporting equipment

• Tools

Should I update my policy if I buy new items?

Absolutely. It's very important to update your home contents insurance policy when you acquire new items to ensure your adequately covered.

This is especially critical if you make any big-ticket purchases, such as electronics, furniture, or jewellery.

To keep your policy current, you also want to schedule annual reviews with your insurer. Regular check-ins allows you to adjust your coverage as needed.

Additionally, some insurers offer apps or online portals. These allow you to update your policy details swiftly and conveniently, making it easier to maintain accurate and comprehensive coverage.

How often should I update my contents insurance policy?

Experts recommend an annual policy check. This helps adjust your coverage to reflect new purchases or changes in your possessions' value.

Certain life events or milestones may necessitate an immediate review, however, such as a family member moving in or out. As will home renovations.