Contents insurance: the differences between the various types of cover

Insurance covering the contents of a home can take several forms and offer different levels of protection. The replacement value varies depending on the package chosen.

Replacement value: definition

The replacement value is the amount estimated by your insurance company for full compensation for a loss under contents insurance. It can take several forms depending on the calculation method suited to the type of policy you have:

●     Market value

An item’s market value corresponds to the purchase value, to which a depreciation factor is applied. 

Example: your American-style fridge is destroyed by lightning. Bought for2,500 euros five years ago, it was state of the art at the time. But each year the fridge’s market value falls. If, based on these calculations, your insurance company assesses its market value at 750 euros, that’s the sum you will be reimbursed.

●     Value as new

Imagine that the same American-style fridge is insured based on value as new. The degree of depreciation of the appliance is not taken into account and the insurance company will reimburse you for its current retail value (or that of a model with the same features). If it’s on sale today for 1,300 euros, that’s the sum you will be paid.

●     Appraised replacement value

Where the loss affects hard-to-replace items, it is harder to assess their value. A chandelier made of precious metal inherited from your grandparents, for example, does not fit the categories previously described. The insurance company will then appoint an adjuster to value the item. This is known as “appraised replacement value”.

If you think that the appraised market value is too low, you can request a reassessment at your own expense.

Immoweb Protect online home insurance enables you to combine your home contents insurance with your home insurance.