The true value of home content insurance

So what is the true value of your home content insurance? Well the easiest answer would be, the value it takes to replace you items and the recovery of all costs to do so.
So I ask again, what is the true value of your home contents insurance?

The reality of the situation is, most people do not know the value of their policy, because they have never taken the time to calculate the real value of replacing all their processions like for like, old for new. In short that 3 piece suit you own may not be worth much now as you have owned it for some time, but your insurance policy is designed to buy you a brand new one, so that is the real value of that 3 piece suite, the new price not the current price.

If you were to start dong a detailed inventory of every item in your home, add up the cost you think it will be and then actually cost the items to replace, in many cases you would be surprised how much money it would take to replace these items.

It is true that certain technology items may have reduced in value such as computers, TV, DVD players etc, but this is more than balanced out by items that have increased in price, such as new kitchens, furniture clothes.

One-way of getting an idea of inventory is to use a video camera and film everything in your home. You can then list everything, but this video footage may act as proof should you need it to present to your home contents insurance policy service provider.

Of course home contents insurance cannot cover everything. Items such as old photos, letters, artwork and more recently items stored on your hard disk on your computer. It is believed that the information on most hard drives is worth more than the computer the hard drive resides in most cases. In better words the computer can be replaced but the information on the hard drive cannot.

This is where it is important to know the real value of you home insurance policy and the real value of items that cannot be replaced. Making copies of the items you cannot replace may be the solution, but you must do this now. Back up your hard drive online, make copies of your photos and letters and store the originals is a fireproof safe hidden away, or even somewhere outside of your home. (Ensuring this is also a safe insured environment). Do not wait for the impeding burglary or weather damage to your home. As far as the insurance is concerned, make sure your value insured will cover the real value or your possessions.

A year can be a long time with birthdays and Christmases in every year. It is very possible that the value of goods within your home has risen considerably due to these events and expensive gifts. Remember most policies are new for old, so the value of your older items has not dropped, so don’t be caught out.