Decluttering at the start of the new year is always a good idea, and while you’re at it, it makes sense to compile an updated home contents inventory, especially if you’re adding in new items. Doing so can help to ensure that your home contents are adequately insured for their current replacement value – in turn helping to ensure peace of mind and financial security should you need to claim.
Wynand van Vuuren, client experience partner at King Price Insurance, says that if you cover your home contents (that’s everything that would fall out of your home if you turned it upside down) for less than their current replacement value, then you’re under-insured and valid claims will only be paid out proportionately.
“As an example, if it would cost R400,000 to replace your home contents today, but you’ve only insured them for R200,000, then you’ll only be compensated for 50% of any loss in the event of a valid claim,” explains van Vuuren.
The good news? Keeping an accurate home contents inventory can help you stay fully insured and avoid costly surprises. Here are van Vuuren’s top reasons:
Proving ownership. An inventory isn’t enough to guarantee that a home contents claim will be paid. When you claim, your insurer may ask you to prove ownership of items you claim for, especially high-value possessions like electronics, jewellery, or collectibles. By keeping receipts, valuation certificates, and photos, you’ll have all the paperwork you’ll need for your insurer. A video walkthrough of your home, stored safely in the cloud or sent to your insurer, can make this process even simpler. Updating your inventory regularly will remind you to keep this information current as well.
Streamlining claims. In the aftermath of a theft, fire, or storm, remembering the details of everything you’ve lost can be overwhelming. An up-to-date inventory takes the guesswork out of listing your items, saving you time and reducing stress when it matters most.
Ensuring adequate cover. Knowing exactly what you own, and knowing what it would cost to replace it all at today’s prices, can help to ensure that you have sufficient cover. Begin your inventory by listing all your possessions and assigning realistic, up to date replacement values, and then make sure that the ‘insured value’ noted on your policy schedule matches this total. If not, this is your cue to ask your insurer to increase it.
Van Vuuren notes that home contents insurance is essentially a month-to-month contract, so reviewing your inventory and policy regularly, especially after a major purchase or receipt of an expensive gift, is key to staying adequately insured. “Likewise, remember to update your inventory after a good clean-out – otherwise, you may end up paying to cover things you no longer have.”
So start now by using this home contents inventory template to ensure that your valued items are ensured for their full value
