Ah, the new year! A time of fresh starts, new gym memberships that will be abandoned by February, and, of course, the annual ritual of decluttering your home like you’re auditioning for a minimalist reality show.
Out with the old, in with the new. You’ve finally decided to part ways with that smoothie maker you swore you’d use daily (but only used twice). You’ve ditched the pile of tangled earphones that have mysteriously appeared in every drawer. You’ve even bid farewell to that sweater your great-aunt knitted for you (it was 3 sizes too big), but hey, sentimentality.
But while you’re making space for your new air fryer and that totally necessary standing desk, have you thought about updating your home contents inventory?
The unexpected plot twist: You might be underinsured
Imagine this: You’ve got a lovely home, filled with cherished possessions, like your TV, your gaming console, your dog’s diamond-studded collar (because Sir Barkington III deserves luxury). Now picture this: A fire, a burglary, or a rogue toddler with a hammer wreaks havoc on your belongings. You file an insurance claim, expecting to replace everything without breaking a sweat.
But wait… Plot twist! You’re underinsured. That means instead of getting a full payout for your stuff, you only get a percentage of its value.
Let’s say your home contents are worth R400,000, but you only insured them for R200,000. Your insurer is only going to compensate you for half of any claim. That means if your R20,000 laptop is stolen, you’re only getting R10,000. Which is just enough to buy a phone.
Why keeping a home contents inventory is genius
A proper home contents inventory ensures that your valuables are fully insured at their current value. Believe it or not, the price of that fridge you bought in 2017 has gone up, and replacing it today will cost you way more.
To keep your inventory up-to-date, do the following:
1. Make a list of all your possessions. Yes, even that vintage teapot collection.
2. Take photos and keep receipts. Because insurers aren’t mind-readers, and they won’t take your word for it that your now-missing watch was ‘definitely a Rolex.’
3. Do a video walkthrough of your home. Bonus points if you narrate it like a nature documentary: ‘Here, in its natural habitat, lies the majestic PlayStation 5. Observe its sleek design and the way it effortlessly dominates Saturday nights…’
4. Update your insurance policy accordingly. Because that new 65-inch smart TV deserves to be properly covered.
Final words: Save yourself from a financial horror story
So, before you Marie Kondo your way into the new year, make sure that what does spark joy in your life is properly insured. Otherwise, you might end up crying over a payout that barely covers a beanbag.
FAQs
The great home purge; why your couch might be worth more than you think
1. Why do I need a home contents inventory if I already have home insurance?
Because your insurer isn’t psychic! An up-to-date inventory helps ensure that your belongings are properly valued and fully covered, so you’re not left with half a couch and a whole lot of disappointment in the event of a claim.
2. How often should I update my home inventory?
At least once a year, but also after major purchases (new TV, furniture, expensive gifts). Also, if you’ve done a deep clean and gotten rid of things, update your policy; there’s no point in insuring stuff you no longer own.
3. What’s the best way to create a home contents inventory?
Start with a list of your possessions and their estimated replacement cost. Then, take photos, keep receipts, and do a video walkthrough of your home. Store it digitally, so you don’t have to hunt for paperwork when you actually need it.
4. What happens if I underinsure my home contents?
Bad things. If your contents are worth R400,000 but you’ve only insured them for R200,000, your insurer will only pay 50% of any claim. That means if you lose a R10,000 item, you might only get R5,000. Ouch.
5. Do I need to include small items in my inventory?
Yes! While you don’t need to list every single spoon, small items add up. A collection of clothing, books, kitchen gadgets, and accessories can be worth thousands, so don’t underestimate their value.
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