How to Estimate Insurance Values
In the aftermath of a disaster or major loss, attempting to estimate the value of lost items can be difficult or even impossible. Taking time to estimate the value of items for insurance purposes should be part of personal financial planning, along with insurance policy reviews. Assembling a complete, accurate and up-to-date valuation list for covered items can help with insurance claims and provide support for potential insurance disputes. Estimating insurance values can be a simple project, with just a few steps.
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Instructions
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Take a complete inventory of items to be covered by the insurance policy. This inventory should include every covered item, including personal possessions, furniture, vehicles, structures, art or antiques. Each item description should include identifiers, such as model numbers, brand name, size, color, options or features. If possible, take pictures or video as a visual reference for each item.
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Document each item to support its valuation. Such documentation as paid cash receipts, credit card statements, sales advertisements, product brochures, tags, labels, warranty information and previous insurance estimates can add validity to your current estimates. For larger items, such as a home, car or boat, check out valuation information included as part of property tax records, tag or registration bills, inspection reports or builder records. The value of antiques or art can benefit from seller statements, or item provenance.
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Search for recent completed sales of similar or identical items. This information can show concrete evidence of value as determined by an actual sales transaction. For antiques, art or other collectibles, magazines or other publications focused on these topics often list most recent sales figures or item valuation. In the case of homes, a licensed realtor may be able to provide a list of comparable sales for your property.
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Contact a professional appraiser to help establish valuation for high-value items, such as a home, a vehicle, jewelry, antiques or other collectibles. Professional appraisers can often provide a certified appraisal or valuation accepted by the insurance company for policy purposes. This can be especially important for unusual items such as rare collectibles, one-of-a-kind items or items with little sales history or records.
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Tips & Warnings
Consider replacement cost, rather than just current value.
A video inventory can offer many details not possible in a written list.
Don't forget items in long-term storage, an attic or in an outside storage building.
Check newspaper or online classified ads to determine current item valuation.
Overvaluing an item can raise insurance rates and may not result in larger loss payouts.
Art and antique valuation can be a subjective topic, which can result in loss claim disputes.
References
Resources
- Photo Credit Michael Blann/Digital Vision/Getty Images
