Home insurance: how can you be sure you haven’t underestimated the value of your belongings?

Water damage, fire, or burglary… When a loss occurs, the amount of compensation you receive depends directly on the value you declared for the contents of your home. If this value is underestimated, you may not be reimbursed for the full extent of your actual losses.

Many households in Luxembourg are unaware that they are sometimes underinsured without even realizing it. How can you avoid this situation and ensure optimal protection for your belongings? Here are some best practices to correctly assess the value of your home contents.

Why is an accurate assessment of your contents so important?

In home insurance, the contents value includes everything inside your home: furniture, household appliances, clothing, jewelry, computer equipment, artwork, musical instruments, and more.

This declared amount determines both the premium you pay and the compensation you receive in case of a claim.

Underestimating your contents may seem harmless, but it can have serious consequences. If the declared value is lower than the actual worth of your belongings, your compensation will be limited, as it is calculated based on the amount stated in your contract. In other words, a low estimate directly reduces your level of protection.

💡 Example: You declare €50,000 in contents, but the real value of your belongings is €100,000. In the event of a total loss, you will only be compensated based on the €50,000 declared. Conversely, a fair and accurate evaluation ensures equitable compensation and prevents unpleasant surprises.

How to estimate the real value of your contents

1. Make a complete inventory of your belongings

Start by listing all your possessions room by room (including the garage, attic, and outbuildings). Include:

• Furniture, appliances, decorations, curtains, rugs;

• Electronic equipment: computers, phones, tablets, TVs;

• Clothing, accessories, jewelry, and watches;

• Valuable items: artwork, wine collections, musical instruments, etc.

💡 Keep purchase receipts and, if possible, take dated photos — they’ll serve as proof in the event of a claim.

2. Regularly re-evaluate your contents

Your home evolves over time — new furniture, better appliances, smart home systems, connected devices…

That’s why it’s essential to review your estimate every two to three years, or after a major life event (move, renovation, marriage, birth, etc.).

Some Luxembourg insurers, such as Foyer, allow you to adjust your policy at any time to reflect the current value of your possessions.

3. Don’t overlook special or high-value items

Certain objects require specific coverage — such as artwork, collections, jewelry, or musical instruments.

At Foyer, the “Art & Passion” coverage protects these exceptional items against breakage, theft, or damage during transport.

A proper evaluation of these valuables is crucial, as their worth often increases over time.

Common mistakes to avoid

1. Forgetting certain belongings: wine cellars, sports equipment, DIY tools, garden gear… it all counts!

2. Failing to update values after purchasing new items.

3. Underestimating replacement value: compensation is generally based on the cost of replacement as new, not on second-hand value.

4. Ignoring the value of portable and tech devices: smartphones, computers, and smart home systems now represent a significant share of household contents.

With mozaïk, we specifically cover these modern items through our “Portable devices” and “Tech equipment” guarantees, including connected and smart home devices.

Already insured?

It’s always possible — and strongly recommended — to regularly review your policy with your agent. At Foyer, this personalized support is part of our customer service: your advisor ensures that your coverage remains aligned with your needs and the current value of your belongings.

A quick home insurance review every two years is a simple habit that helps you avoid underinsurance.

Conclusion

Underestimating the value of your contents means risking inadequate compensation when you need it most. By keeping your inventory up to date, assessing replacement values, and adjusting your policy accordingly, you ensure truly effective protection.

To check whether your current coverage matches your real needs, don’t hesitate to contact us — a simple conversation can make all the difference when a claim occurs.