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So I've been thinking for a while now about organising some contents insurance - we are currently renting so don't need home insurance but if the house burnt down tomorrow, we've got a heck of a lot of stuff that would need replacing. I've found a couple of online calculators, but am kind of wondering anyone has a good way of figuring out the amount we should be covered for?
(also any suggestions on who does good contents only insurance wouldn't go astray :) )
Using those calculators is your best bet, going through each room basically and listing what you have and what it is worth. Nothing worse than under-estimating - I remember a few years ago my neighbours had a kitchen fire - you don't realise how much stuff that isn't directly burned is affected like curtains, bedding, tv's computers etc because of the ash. Anyway they used their WHOLE contents insurance getting everything replaced and repaired and were lucky the entire house didn't go up.
Thanks for the reminder I think we need to update ours too! We shopped around quite a bit but ended up with CBA because it is linked in with our home loan, but I am with Allianz for my cars and find them very competitive.
Good luck!
Go through and list everything, including things like bottles of perfume, underwear etc. You need to work out how much it would cost to replace it all if you lost it.
I scared myself with my DVD/CD collection, exactly how much it would cost to replace those especially since some of them are limited edition etc. I didn't think I had that many.
Also my shoe collection scared me as well, I've got 50 pairs at the moment and some of them are $200+ to purchase.
Just wanted to add further to Sopdet's post - some sites have lists you can print off and are really thorough so use those!! Once you start listing stuff it is amazing how much you have!
ETA: I just did ours and the estimator says we are under insured by $139,000!!!!!!!!! I knew ours would be a bit under and I doubt it will be that high once I do the actual list for each room but holy moly!!
I have just arranged new H&C insurance as we have just moved. We have gone with GIO and so far I have been very happy with their premiums, their terms and conditions and there service. I have not made a claim through GIO, so can't comment on the claims process.
I tried using all the calculators but honestly, it was driving me nuts to go through and list every last thing. In the end, I asked the consultant what the average family of 5 insures for contents. She told me the average was about $100K. I have insured our contents for $150K as we have a lot of stuff, including some expensive items. I have insured my jewellery (sp?) on top of that ($70K of jewellery was only an extra $8 or so a month).
Not the most technical method of working out our contents, but I'm comfortable with it!!
Tanstar, $139K is huge! I got numerous quotes and most companies wouldn't even insure us for more than $150K contents unless we had a back to base alarm and bars on the windows. Apparently, more than $120K is a large amount to insure??
Well, went through and did one of the online calculators from QBE, initial estimate came in at something crazy like $300K but then you can go in and adjust stuff manually, so I did - was surprised as it came back at around $150K. So am now working on getting quotes based on that much - think my quotes are coming back cheaper because I don't need to insure the house or any carpets/curtains etc as they aren't ours.
I'm with you on the DVD collection Sopdet - DH and I have 2 massive bookcases that are chock full. Oh and then there's the books as well..
nickle - I know hun!!! When I put our stuff in another one that lists stuff for each room it was more like 20k under what we need! Not sure how they based that on a family of 4 with 2 kids under 5!!! Some of our stuff is pricey - like kitchen stuff, but other stuff is really cheap!!
Wow that is a lot! Our contents are insured for about $65k I think. Grab a super amart catalogue and a retravision catalogue and add up the cost of the major appliances and furniture, and then double that.
My Contents is insured for bout 50k..but im thinking of upping it
I would calculate using a spreadsheet, room by room, and then add 10% to the top (because you are almost always missing something!). Remember, it is the cost of replacing what you have, not how much you think your contents are worth now.
Just about everyone is underinsured. And you can face penalties if you have to claim and you've been underinsured. Check your policy for their terms. You are better off paying a little more and upping your limit (and remember to increase it from time to time, to account for price increases and new items you've probably bought) than finding yourself out of pocket when you really need it.
Cost of contents insurance is a bit like car insurance, what excess will you choose, are you itemising things, what about portable cover, cover for motor stuff (ie washing machine, fridge, etc), it goes on and on. Go online and try a few different insurers and don't be afraid to call a few and ask them to match if you have another insurer already for your car. Often your existing insurer will give you a multi-policy discount.