Insuring your home and its contents

Planning your new home or re-imagining your old one, is a joy but has the downside of some administrative tasks that need to be done. Welcome to adulting!

If you’re in the market for home insurance, you might wonder how much coverage you need. An inventory of the items in your home can help you determine your personal property coverage amount, but what about dwelling and liability coverage?
Home insurance costs need to be estimated for both the dwelling and the contents. Such insurance cover needs to also fit your budget, so it is worth your while to take this step very seriously. You don’t want regrets later but you also don’t want to cripple yourself.

Your home’s replacement cost is the amount of money you would have to pay to rebuild your home at the current market value, if, say, it burns down. Purchase enough dwelling coverage to match the replacement cost. To determine your home’s replacement cost, take the average cost per square meter of a home in your suburb and multiply it by your home’s square meters. Figure out how much it would cost to install a new roof, floors and interior fixtures. Add those figures together to get the replacement cost.
Calculating your personal property coverage means you need to create a home inventory – which may seem overwhelming, but it’s worth your time. Having this list ensures you have adequate insurance coverage and makes the claims process easier if your belongings get damaged or destroyed.

A home inventory list is a catalogue of all your belongings. It should include items in your house, yard, garage, car and office.

You can create a home inventory in several ways. Many homeowners choose to catalogue their belongings by room, or type of item, to keep everything organized and to easily add new items as they are purchased.

Include details about each item to help your insurance company calculate your pay-out after a loss. You should include information such as:

• A written description
• A photo
• The product’s make, model and serial number if applicable
• The original cost
• The place and date of purchase
• The receipt, if you have it
• Warranty information

Drawing up your list of household items (especially sentimental keepsakes and high-value appliances) can be time-consuming. Thanks to modern technology, there are mobile apps and/or software such as Excel to help you stay organized. Using a spreadsheet has the added benefit of calculating your items’ values quickly and easily. Once completed, keep a digital copy in the cloud or a physical copy outside your home for safekeeping. Should you lose your home to fire, at least your inventory will be accessible elsewhere.