How to Determine the Value of Your Possessions

A house is many people's most valuable possession.

You need to know the value of your personal possessions if you are interested in getting homeowners' insurance to cover the contents of your home in the event of loss, theft or fire. Insurance companies use two different forms of valuation: cash value and replacement value. The first is the actual value of the object that you own. The second is the amount it would cost to replace an item with a similar item.

Instructions

1. Make an inventory of everything that you own. The more detail you include, the more accurate you can be with your valuation. For example, a "TV" could be worth anywhere from zero to $1,000, while a "5-year-old RCA 24-inch color television" could be evaluated quite accurately.

2. Determine both the cash value and the replacement value for each item. Since you are going to the effort of cataloging everything, it makes sense to do a comprehensive evaluation for future reference. For example, a 10-year-old dishwasher might have a cash value of only $50, but a replacement value of $600.

3. Take items that are unique, unusual or potentially very valuable to a professional appraiser. While household appliances and clothing are common and easily estimated, a rare book or a piece of antique jewelry have fewer comparables to determine their values.

4. Add up the amounts for all of your possessions in both the cash value and the replacement value categories. This information will be very useful to you when discussing policy options with an insurance agent.

References

• Compu Quotes: Determining the Value of Your Possessions for Homeowners Insurance
• Compare the Market; Valuing Contents of a Home; A Quick Guide
• Money-Zine: Personal Property Insurance