Besides having insurance coverage on your home, it is also important to have adequate insurance to replace your possessions in the event of a fire, disaster or break in. It may be difficult to determine how much your possessions are worth. In the case of a disaster, it will make it easier to estimate the value of your possessions if you do some recording and research before hand.
If you are renting your home or apartment, the landlord will have insurance on the building, but it is important for you to have renter’s insurance to cover your possessions. You may not think your possessions are very valuable, but if you need to replace everything, it may cost a considerable amount of money to replace items that you have purchased over a period of years. In many cases, renter’s insurance can be purchased for under $100 a year, or $8 to $10 a month. When considering the low cost of the insurance, it is a wise decision to have renter’s insurance in the event of a fire or other disaster.
Determine if your policy will pay cash value or replacement value. Cash value is better if most of your valuables will increase in value and replacement value is better if the items are likely to depreciate.
Most policies have a value limit, so if you want to insure more expensive items such as antiques, jewelry, furs and collections, do so separately to make sure they are covered. Many policies may list a specified amount for miscellaneous items, such as clothing. There may be an amount such as $10,000 for clothing, instead of listing and valuing each item.
To keep a record of your possessions, keep a list of major items along with an estimated value. In addition to a list, it may also be helpful to have digital photos of the items or take a video of your home to have proof of your items. Keep a copy of the list and photos or video in a safe deposit bank or other secure place other than your home. It is important to have them in a different location so in the event of a fire or disaster they will be safe. When you make major purchases, update you list and take digital photos.
Taking some steps in advance will make it easier to estimate the value of your possessions for insurance purposes in the event of a disaster or robbery.