How to Estimate the Value of Your Possessions

In each of our homes lies a treasure trove of possessions. Some are utilitarian with high monetary value, such as a refrigerator, but have little emotional pull. On the other hand, there may be items handed down from past generations that would likely stir great emotions but have low market value to others. Many would value their possessions based on their attachment to them, but is that how it works when you’re shopping for homeowners insurance or renters insurance? Below are a few ways to estimate the value of your possessions before negotiating your insurance policy.

Calculating the value of your possessions

It’s not easy to calculate the value of your possessions, but using a few easy strategies, you can be well on your way to determining the amount of insurance coverage that is right for you.

1. Walk around your home or apartment and take photos or video of everything you’d like to insure.

2. Make a list of everything you have photo or video proof of, and begin to estimate each item’s worth:

For items with receipts, take photos of the receipts and any warranties.

For expensive possessions like furniture or electronics, getting the model name or number and date of purchase is crucial.

3. For clothes, shoes, nonelectronic household items, and any other household possessions, calculate the value you estimate these all to be worth.

4. Add each group together, and that is the estimated value of your possessions.

How much insurance do you need?

One handy tip is to estimate the amount of money you can afford to pay out of pocket to replace your possessions and subtract it from the total value of your possessions. Arriving at that number will ensure a lower monthly payment but guarantee the peace of mind that comes from comprehensive insurance coverage.

Don’t hesitate to reach out so you’ve got as much information as you need to make a decision that’s best for you.