When buying Home Insurance, many people do not know how to value their belongings and panic when the company asks them for the value of the contents of the home.
To avoid any kind of surprise, we show you how to calculate the value of your goods in a simple and safe way.
When you subscribe a Home Insurance, the coverage can assume the damages that both the container and the contents of the home may suffer.
Today we will focus specifically on the content, that is, all those goods that are inside your home, going from furniture to food to keep in the fridge.
Remember that the content is made up of all those belongings that belong to the insured or the people who habitually inhabit your home.
To classify the different elements that make up the content in a simpler way, three large categories can be cited:
- Valuables and jewelry
Let’s review each category in detail.
The furniture is made up of all the furniture and household appliances in the house. Among them we can find:
Tables, chairs, couches, beds, nightstands, shelves, bookcases, dressers, cabinets, kitchen cabinets, bathroom cabinets, desks, cribs, refrigerators, washing machines, dishwashers, microwaves, computers, printers, mixers, vacuum cleaners, dryers, televisions, stereos, etc.
Do not forget that only those elements that are inside the house or in spaces to which only the owner and its inhabitants have access will be included.
The belongings are made up of all those elements that are inside your home and that do not correspond to the furniture or jewelry category. Among them we find:
Lamps, curtains, paintings, sheets, duvets, duvets, pillows, tapestries, mirrors, cutlery, glasses, glasses, kitchen utensils, garbage cans, decorative items, clothing, articles for personal use, food, etc.
Jewelry and valuables
This category is made up of all those objects that have a high or special value, such as:
Works of art, jewelry, famous paintings, gold or silver coins, antiques, philatelic collections, numismatic collections, fur coats, etc.
It is important that you know that each insurance company will set its own conditions regarding the classification of valuables.
There are some insurers that can protect objects such as firearms, musical instruments, ivory and leather, and even high-priced skateboards and bicycles.
All jewelry and objects of special value must be declared to the insurer, otherwise, it may not respond in the event of a claim.
For an object to be considered of special value, companies usually set an amount that is between 2,000 and 2,500 dollars.
Calculate content value
In order to calculate the content of your home safely and easily, it is necessary that you follow a series of steps that we explain below.
List your assets
The simplest way to be able to carry out a complete inventory of your assets is to list the items by room (living room, bedrooms, kitchen, bathroom, dining room, etc.).
This way you will not forget anything and you will have everything well organized. At the same time, we advise you to write down the category to which each item belongs.
Give value to each of your goods
Although it may seem like a long and difficult job to carry out, this point will be decisive when calculating the content of your home to hire any of the types of Home Insurance.
The first thing you should do is separate each of the elements by category. This exercise will facilitate the calculations at the end of the process.
Then, we advise you to price each of the items that you have listed in your inventory according to their replacement value.
The replacement value corresponds to the price you would have to pay if you had to buy that object in the market.
If you don’t know the prices, you can go online to get an idea.
Make the sum of the three capitals
Once you have obtained the values of each of your objects and that they are classified by categories, you only have to make the sum of the three capitals. That is to say:
Content = Total Furniture + Total Household goods + Total Valuables and jewelry
Apply the percentage of coverage for jewelry and special objects
Jewelry and other valuables usually have a special treatment within insurance policies and can be insured up to a certain limit.
In most cases, this limit is set by the companies themselves and corresponds to a specific percentage of the total content.
Today, this percentage ranges between 10 and 25%.
This means, for example, that the automatic coverage of valuables and jewelery will correspond to only 20% of the total that you have calculated in stage 3.
Make an extension of your insurance
This stage is very important, since if the capital of your valuables and jewelery exceeds 20% of the Content, you will have to make an extension for the amount that remains to be covered.
Don’t forget the declaration of your valuables
At this point, you must declare to your insurer all those valuables or jewelry whose unit value exceeds 2,000 dollars, regardless of whether or not it exceeds 20% of the content you wish to insure.
At the same time, you must prove the ownership of these objects and their pre-existence by presenting the corresponding invoices, certificates of inheritance, affidavits or photographs.