Working out the value of your home and contents
How much is your stuff worth?
When it comes to putting a value on your home and contents for insurance purposes, many of us underestimate just how much everything would cost to replace. In the worst case scenario, you could find that you’ve underinsured yourself for many thousands of dollars at claim time due to an inaccurate estimate. Let’s look at the best way to work out the value so can ensure you’re minimising your risk of being left out of pocket.
Rebuild costs of your home
It’s essential that you know the rebuild cost of your home so you can ensure you have the right level of insurance in place. If something catastrophic were to happen to your house, such as a fire which would require your house to be rebuilt, you don’t want to find out too late that you’re underinsured.
To make things easier for you, here are our online calculators which can help you find out the estimated rebuild cost of your home, and replacement of the contents. The home rebuild calculator takes into account features of your home and asks for details about the house, fixtures, location, age, construction, rooms, structure, and other specifics to provide an estimate that is as accurate as possible.
Also, it’s important to remember that the cost of rebuilding will go up over the years and as you add features to your home. Each time your insurance is up for renewal, and also if you perform renovations or improvements to your home, complete a new calculation so you can increase the amount you’re insured for if necessary.
Replacement cost for contents
When faced with the question of how much all of your possessions would cost to replace, a lot of Australians give a quick guess that can be very short of the actual figure, or very high which can result in unnecessary over-payment. While online calculators can help with this, it’s also a good idea to do an accurate inventory list of each room with an estimated replacement cost.
This will also assist you to comb your home for expensive items that may have limits for general Contents Insurance policies, and require an individual insurance policy to cover them for the full value amount.
When calculating the cost of our contents, we often remember the expensive items but forget about items we use every day such as books, crockery, cutlery, linen and clothes. Even if these items aren’t worth much individually, it can add up if you needed to replace all of these items at once.
Along with getting an accurate replacement cost for your contents, doing an inventory also gives you the opportunity to take some photos of your more expensive possessions such as jewellery, electronics and artwork.
Photos can also help jog your memory down the track if you can’t remember the items you owned in the event of theft, fire, or other insured event. Photos make things easier at claim time as you’ll have clear proof of ownership. Additionally, make sure to retain proof of purchase for expensive items as this will also help.
With a little extra effort, you can help make sure that you’re not underinsured and that you’re not paying too much for your Home and Contents Insurance. For further information about Home and Contents Insurance, contact CGU today.