What is the insured sum for household contents?
What is the insured sum regarding home contents insurance? How do I calculate the insured sum? Comparis explains what you need to know.
09.11.2023
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1. Home contents insurance: what is the insured sum?
The insured sum is the value of your household contents recorded in your insurance policy. It is usually based on the replacement value of the entire household contents. In the event of damage, the insurance company will pay out maximum the insured sum.
The insured sum under home contents insurance covers what is known as basic household equipment. Basic household equipment includes:
furnishings
appliances
tableware
bedding
clothes and shoes
food and emergency supplies
Supplementary household contents
Supplementary household contents refers to items that exceed the value of “normal” household contents. Supplementary household contents includes, for example:
electronics, e.g. expensive photographic equipment
sports equipment and clothing, e.g. skis, snowboards, skateboards, skates, sleds, bicycles, fishing articles, surfboards, hang-gliders, paragliders, diving equipment, inflatable boats, hunting and sports weapons
leisure and hobby, e.g. a record collection
collections and works of art
valuables and jewellery
other, e.g. designer furniture or wine
Make sure that your insured sum covers the value of the supplementary household contents. Otherwise, you risk being underinsured.
2. Calculating the insured sum for household contents
You should determine the exact insured sum for your household contents. This way, you avoid being underinsured.
The current value is an item’s value based on its age, condition and the degree of wear and tear at the time the damage or loss occurred. For most items, the value decreases over time.
The replacement value is the current market value. This means that the new value corresponds to an equivalent object at the current purchase price.
Example of current value and replacement value
Two years ago, you bought a new laptop for 1,000 francs. Today you can still get an equivalent laptop in the store for 1,000 francs. So the replacement value is 1,000 francs.
However, you have been using your laptop for the last two years. It shows minor signs of wear. If you were to sell it in its current state, you would get 600 francs for the laptop. The current value is therefore 600 francs.
Factors for calculating the insured sum
Some insurance companies have online calculators on their websites to help you work out the value of your household contents. This calculates the flat-rate amount with
the number of people living in your household. Children up to 14 count as half persons.
the number of rooms in your apartment or house.
the furnishing standard of your home. Here, the calculators usually distinguish between simple, medium and sophisticated.
Simple: mainly easily replaceable furnishings, for example, Ikea furniture.
Medium: mainly retail furniture. This includes furniture stores.
Upscale: mainly designer furniture or other hard-to-replace pieces of furniture.
Expensive items such as valuable collections and technical products are not included in the calculations. They also raise the value of your household contents.
Check the insured sum on a regular basis
Regularly check the value of your household contents and, if necessary, adjust the amount in your insurance policy. Having an inventory list is helpful.
Planning to move? This is a good time to update your household contents.
This article was first published on 18.11.2021
