Over time, we accumulate a lot of … stuff. We’re gifted items, create emotional attachments to pieces and collections, hold on to items from another time in our life, and get stuck with items our kids left behind. Whether you’re downsizing, clearing out some old clutter, or passing on special items to loved ones, these milestones are a great opportunity to review the value of your belongings in your home. How much would it cost to replace each item? If you’re like most Canadians, you would likely be surprised at the total value. When reviewing your home, condo, or tenant’s insurance policy, you want to make sure you have the right amount of coverage; you don’t want to be underinsured or over insured and paying a higher premium than necessary.
It All Adds Up
When you start calculating the cost of your belongings, the sum might surprise you. Your kitchen includes big and small appliances, pots and pans, dishes, tools, and more. An average estimate of the items in a kitchen is around $4,500.
Consider the items in your bedroom. A mattress, pillows, bedding, and furniture. Don’t forget clothing and jewellery! Replacement value could cost hundreds or thousands of dollars.
Knowledge Is Power
Knowing the value of the contents is very important when determining how much insurance coverage you need. Overestimate the value of your belongings and you could pay a higher premium than necessary. Underestimate and you won’t have enough coverage to replace your belongings.
Most policies offer a limit on the value you can claim on individual items, such as bicycles, art, jewellery, and antiques. You may want to consider adding an item separately (scheduling) to your policy if its value exceeds the limit. Your insurance company may request an appraisal.
Record Keeping
If cataloguing your belongings feels overwhelming, you’re not alone. The Insurance Bureau of Canada has some free downloadable tools to help. If the colder weather has you spending more time indoors, take advantage and work through the process. When you’re done, determine a safe place to store copies of your information, both physical and digital versions.
Should you find yourself in a difficult situation, being prepared with proper documentation can relieve a lot of stress.
To discuss your contents coverage options and the impacts on your premium, or to get a free no-obligation quote on your property insurance,
call an Orbit Insurance Services broker at 1-855-894-2782 or visit their website for more information.