How To Calculate the Value of Your Possessions
Posted on January 9, 2008
Filed Under Uncategorized |
If you are thinking about getting renters insurance, you have to have an idea on how much your possessions are worth. But it is not an easy thing to do. Some people over-estimate the value of it, and some people under-estimate it! It is hard to really know what you have, especially after it is all gone. Trying to remember everything is almost impossible. So if you are going to get a renter’s insurance policy, here are some guidelines that will help you make an educated decision.
The first thing you need to do is take an inventory of what you have. Literally go around to each room or area where you have possessions, and write down what you have. For the bigger and more expensive items, it is good to itemize. List each thing, when you got it, the purchase price and your best guess of the current value. Remember, the current value is what you would expect to get for it today, in it’s current condition (for example, at a yard sale). If you have receipts, keep them with this list. You also need to write down any serial numbers you can find on the electronics. For the less expensive items that you have a lot of, such as your clothes or general kitchen items, you can do a bulk entry (something like - clothing or kitchen accessories) and guesstimate a quantity and value of the lot. If you can, take pictures of your rooms and garage/storage spaces. To be the most accurate, open drawers and closets to capture the true quantity of your things. This helps when trying to recover your losses during a claim.
Now add up the purchase price number column from all these line items, and then add up the current value number column from all the line items. Look at these two totals. It is amazing how much stuff you have and how much money you need to replace it all!
Now you know one reason why you need renter’s insurance!
After you make your list, collect your receipts, and take your photos/videos, make sure you keep your documentation updated. Also, be sure to store your documentation in a safe, fire-proof place away from your dwelling - like a bank safe deposit box.
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[...] you are looking for renters insurance, the first thing that you need to do is calculate the value of all of your possessions. Once you complete that, you’ll have two values: the current cash value and the original [...]
[...] you are looking for renters insurance, the first thing that you need to do is calculate the value of all of your possessions. Once you complete that, you’ll have two values: the current cash value and the original [...]