How to Set the Contents Value in Home Insurance and Avoid Underinsurance

One of the questions people skip most often when buying home insurance is simple: what is everything in your home actually worth? Most of us answer with a round figure that comes to mind, and the policy is issued on that guess. Yet the contents value you declare is the basis of any claim payment. This guide explains how to set a realistic contents value and why underinsurance is such a quiet risk, especially for expats who have furnished a flat in Istanbul from scratch.

Why the contents value matters

A home policy in Turkey usually has two separate sums insured: the building and the contents. The building value covers the structure itself, while the contents value covers everything movable inside: furniture, white goods, electronics, clothing, kitchenware, books and decoration.

When you make a claim, the insurer does not only look at the damaged items. Depending on the policy terms, it may also check whether the declared value reflects the real total value of your belongings. If the declared value is clearly below the real value, the payment can be reduced proportionally. This is called underinsurance.

How underinsurance works in practice

The logic is straightforward: if you insured only part of the risk, the insurer carries only that part of the loss. For example, if you declared roughly half of what your belongings are really worth, even a partial claim may be paid at roughly half. The details, any tolerance margins and exceptions vary from policy to policy, so the safest approach is to read the special conditions of your own policy together with your agent.

The problem is that underinsurance usually goes unnoticed until a claim. The policy renews year after year, but the contents value is never updated, so the owner unknowingly carries part of the risk.

A room-by-room method

The most reliable method is to walk through your home and write a simple inventory. You do not need a professional valuation; a spreadsheet is enough.

1. Living room: sofas, table and chairs, TV, sound system, rugs, curtains, lighting and decorative items.
2. Bedrooms: beds, wardrobes, clothing, shoes, bags and personal items. Clothing alone is often worth more than people think.
3. Kitchen: fridge, oven, dishwasher, small appliances, cookware, plates and glasses.
4. Work area: computer, printer, monitor, bookcase and books.
5. Bathroom, balcony and storage: washing machine, dryer, garden furniture, bicycles, sports equipment and anything kept in a storage room.

For each item, ask what it would cost to buy the same or a similar item today. What matters is today’s replacement cost, not the price you paid years ago. If you shipped furniture from abroad, think about what it would cost to replace it locally.

New value versus market value

Policies can define the value of belongings in different ways. On a new value basis, the cost of replacing a damaged item with a new one is used. On a market value basis, the age and wear of the item are taken into account. Which basis your policy uses directly affects your payout, so ask about it when you request a quote.

Common mistakes and good habits

• Setting the value once and never updating it: new purchases and price changes are not reflected.
• Counting only large items: clothing, kitchenware and books add up to a significant sum.
• Not listing valuables separately: jewellery, art and collections often need to be declared separately.
• Deliberately under-declaring to lower the premium: it looks like a saving until a claim.
• Keeping no records: without receipts and photos, proving ownership and value is harder.

Once your inventory is ready, photograph each room and take close-ups of valuable items. Keep receipts in a digital folder and review everything once a year before renewal. If you rent, the building is the landlord’s responsibility and your contents value is the heart of your policy, so the inventory matters even more. Share the file with your partner or another adult in the household, so someone can reach it if you are travelling when something happens. For a wider checklist, see our guide on what to check before buying home insurance.

To review your contents value and compare quotes from several insurers, visit our Maslak home insurance page. Ailenizin Sigortacısı has worked with several insurers since 1996. Call +90 530 375 89 61 or send a WhatsApp message for English-speaking support.