Those expensive items

A home is more than the rooms. It contains all those memories you’ve accumulated over the years. Over time, you probably forget what you have in cupboards. But if something happens. Like there’s a fire or a burglary. You’re suddenly aware of the loss. When you take out your first homeowners policy, you’ll almost certainly give a low estimate of the value of the contents. You’re young. There has not been enough time to build up a collection. Each time you come round to renew that policy or change insurers, you have the same problem. The actual value of your contents has gone down. That sofa and those chairs have one more year’s wear and tear, but the cost of replacement has gone up. Those shops will insist on putting up the prices of new stuff.

So what exactly is covered? The usual rule is you cannot benefit from the insurance unless it’s built into the terms of the policy. That means you’re entitled to the fair value of your contents unless you signed up for a “new for old” policy, i.e. you’re entitled to replace your “old” stuff with “new” stuff. To make everyone’s life easier, most insurers accept general estimates of value for “everyday” contents. Some even provide you with guideline figures. But if you have anything that is particularly expensive or it’s going to difficult to replace for some reason, you need to have those items specially endorsed on the policy. Now we’re into the whole different ballgame of expensive watches and jewelry, antiques and other collectibles. There may also be items of sentimental value that you would want recreated, e.g. an engagement ring. For all these items, you’re going to meet an appraiser, agree a value, take photographs, and generally establish trust on both sides.

Why trust? Because fraud is not uncommon when it comes to insurance claims. Thus, you first have to prove that you have these items and they are worth what you say they’re worth. Then you have to protect them. Burglar alarms and other security measures may be required. Should there be a loss, you’ll also have to prove the items are genuinely lost - charred remains from the fire, water damage from the flood, and so on. Always get a police report for theft claims to prove forced entry.