Household
Valuing household contents: avoid underinsurance
A precise contents value protects you in a claim: simple methods and common pitfalls.
Underinsurance is one of the most common reasons for disputes in household-contents claims. If you underestimate the value, payouts may be reduced proportionally. This guide shows how to estimate contents realistically and when updates are needed.
1. Use floor area as a starting point
Many insurers use a flat amount per square meter. It’s a helpful benchmark, but it does not replace a realistic assessment.
If you have high-end furnishings or lots of technology, you should increase the value accordingly.
- Use a per-m² benchmark as guidance
- Account for premium furnishings separately
- Don’t forget basement and attic
2. An inventory list creates clarity
A simple inventory list prevents important items from being forgotten. Photos are often sufficient as proof.
Especially for electronics, furniture, and collections, short documentation is worth it.
- Write down your top 10 valuables
- Store photos and receipts digitally
- Update regularly
3. Declare valuables separately
Jewelry, watches, and art often have sub-limits. Without declaration, compensation is capped.
Some insurers offer dedicated valuables modules.
- Check sub-limits in the policy
- Bundle valuables or insure separately
- Appraisals can help for high values
4. Special items: e-bikes, smart home, instruments
Special items often need add-on coverage, such as e-bikes, drones, or musical instruments.
Smart-home technology can also significantly increase the contents value.
- Review e-bike and mobility risks
- Account for high replacement-value tech
- Check away-from-home / transit coverage
5. Recalibrate regularly
Moves, renovations, and new purchases change your contents value. Updating only every 5-10 years can lead to underinsurance.
A quick review every two years is usually enough.
- Update immediately after moving
- Quick-check every 24 months
- Consider inflation and price levels
Household contents quick-check
Conclusion
Valuing household contents isn’t hard, but it’s real protection. If you know the major items and update regularly, you avoid underinsurance and get full benefits when it matters.