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How much is your “stuff” worth?
It’s hard to imagine what it would take to replace every single item you
own. Perhaps that’s why many people simply pluck a number randomly from
thin air to assign a value when applying for home insurance. An inadequate
estimate of your contents can present challenges or delays at the time of
a claim.
The best way to assess the value of your home’s contents to ensure that you purchase adequate coverage is to “take inventory.” Here’s how:
Take stock. Working room-by-room, list all major items such as furniture and electronic equipment, using a fresh page for each room. Don’t forget appliances, both major and small. Jot down the make, model, and serial number beside each item.
Check it twice. Now do another walkthrough, and add the smaller items. Include often-overlooked items such as bedding, towels, cutlery, dishes, videos, books, everyday jewellery, rugs and wall decorations. Remember to account for things you keep in your purse or briefcase, such as an MP3 player or cell phone.
Take a picture. On this second pass, take photos or a video of each room and key contents.
Cost it out. Assign a dollar value to everything on the list. Note what you actually paid for each item and when, and estimate what it would cost to replace it today.
Wrap it up. Add to the file any supporting documentation you can find, such as receipts for major items, warranty cards or manuals. Place everything in a large envelope.
Run the numbers. Check that the dollar amount of your overall coverage for contents is high enough. Then scan the list for items that should receive individual coverage through a rider or schedule. These include items that exceed the maximum reimbursement limit for any single item, such as fine jewellery, watches or furs; original art; collections such as stamps, coins, comics or books; antiques; birds, fish or other pets.
Keep it safe. Be sure to keep your file at an off-site location such as a safe-deposit box.
Questions from our claimants
Every week, our claims advisors answer thousands of questions from clients
who find themselves making a claim.
Here are a couple of the questions we hear most often that may be of interest to you.
“What happens if the damage makes it impossible for me to remain in my home?”
If you are forced to move out of your home following major damage from insured circumstances, your property insurance pays for the additional costs of temporary accommodations and meals.
So if, for example, your total monthly living expenses were $800 before the incident, and afterwards your total monthly living expenses increased to $1,000, you would be reimbursed for the difference — $200.
“If I paid $350 for a VCR in 1999, and it is damaged by water, how much do I get back?”
If your property is lost or damaged by an insured peril, you will be paid the lesser of:
- The cost of repairs; or
- The cost of replacing an article of a similar kind, quality and usefulness without deduction for depreciation, up to the applicable limit of insurance.
So, assuming your VCR is not repairable, and a similar make and model now costs $125, that is the amount that would be applied towards the replacement of the item providing it is replaced within 180 days of the loss. Otherwise, you would receive $125 less depreciation.