Whether you’re shopping for condo insurance or even renters insurance, at some point we’ll ask you how much you need for your contents coverage. Don’t worry, you’re not the only person stumped by this common home insurance question. what we are really asking is how much insurance would you need to replace all of your belongings and things in your home. see below for more information on insurance and contents coverage.
how is the coverage limit of your content calculated?
Think about everything you own in your home. this may include:
- furniture
- computers, tv and all your electronic devices
- clothing and jewelry
- appliances
- kitchen utensils
- bedding
- jewelry
- bicycles
- art
- home business equipment
- collectibles and antiques
When you start to write down all your belongings and add everything up, the total can sometimes surprise you. this is what you would consider during your content coverage discussion.
don’t fall short – calculate the value of everything
Remember, this exercise is designed to estimate the cost of replacing these items. maybe you still live with second-hand clothes from your parents’ basement. Your sofa could have been a gift, but if you need to buy a new one, it will be priced in the hundreds of dollars. You should also keep in mind that although you may be a bargain shopper, if you need to replace your wardrobe due to a fire, you may not be able to get the best deals. When looking to calculate a value for your content coverage, you want to see the cost to replace with the same item, at today’s value. consider the total cost of all your belongings.
why can’t your insurance broker help you calculate your estimated content?
Although we are always here to help, this is one area where you are on your own. there is no average for content coverage. most of our companies have a minimum that they will insure, which is usually around $40,000. however, about that, it is difficult to estimate without knowing you or your things. one person’s 800 square foot apartment may have $40,000 worth of contents, while another will have $400,000.
save your receipts
A good way to get to a contents coverage limit is to save your receipts, especially if you’re completely furnishing your home. those receipts can also help you calculate an average monthly expense which can sometimes help you estimate your total limit. another way to determine value is to complete a personal property inventory.
related: safe strata & deductibles for condos or townhomes explained
keep an inventory of properties
Insurance Canada has a property inventory form here. Not only does this help you find value, but it also means you have a list of your property in case you need to make a claim.
special content to secure
There are also some special items that we look at specifically. Although these items are considered contents, they may have a maximum for which you are insured. Some of these articles are:
If you have any of these items, be sure to let us know. sometimes we can simply increase the maximums for those items and other times we’ll add specific insurance to make sure you’re covered.
get a quick & free quote for contents insurance
It’s important to make sure your contents coverage is as close as possible to the actual cost of replacing your belongings. this will mean that you are not paying too much for insurance while remaining fully insured. do you still have questions? contact us, we would love to help… where we can.
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