How to take stock of your possessions
Homeowners applying for new household (short-term) insurance - and many do at the start of a new year - will often be asked to compile an inventory of their possessions and to calculate the total value. But, says Berry Everitt, MD of the Chas Everitt International property group, owners often find it tricky to assign appropriate values to their goods. "For example, that comfortable old chair that cost next to nothing at the second-hand shop may be worth more than you think because for insurance purposes you must calculate its replacement value."
"Remember that if the estimated value of an item is too low, the insurance company will probably not cover the full replacement cost in the event of a claim. On the other hand if it is too high, your nsurance premium will be unnecessarily high."
Writing in the Property Signposts newsletter, Everitt says the easiest way to compile an inventory is to tabulate the contents of each room, listing the various items you want insured, the original cost of each and as far as possible, the current replacement value. A useful tip is to scan advertising supplements to get an idea of the current cost of small and large appliances, furniture that corresponds with your own, and items such as light fittings.
"Unique items such as custom-made jewellery may pose a problem but the best course of action in that case is to take the purchase price as a base and adjust the figure for inflation, or even better, to take the item to a jeweller and have it appraised," he says. It is a good idea to update the inventory at least annually to take inflation and rising replacement costs into account, and to adjust your insurance cover accordingly.
"And finally, you should make sure you keep a copy of your inventory in a safe place off-site because this can go a long way to speed up the claim process if your possessions are stolen or destroyed."
ISSUED BY CHAS EVERITT INTERNATIONAL
FOR MORE INFORMATION CALL
BERRY EVERITT
AT (011) 801-2500
OR VISIT www.chaseveritt.com