What value do I assign to my second-hand belongings for insurance purposes?

"I have replacement cost coverage for my renters insurance. I'm making an inventory of my belongings, but many of them were bought second-hand. For example, I bought my couch for $350, whereas a similar model that's brand new would cost over $700. Should I list the second-hand price or current retail price of my belongings?

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Answer
“The purpose of insurance is to make you whole if you do need to file a claim. In this case, you would provide the current retail cost of the couch since you have replacement cost coverage. For example, if your couch were to be damaged in a fire, the insurance company would replace it with a brand-new couch.
If you had an actual cash value policy, you would list the used price because the couch would be replaced with depreciation factored in. “
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Jackie Whalen
Answered on Apr 08, 2021
Jackie Whalen has been in the insurance industry for over 7 years, working in sales, service and claims. She has won numerous awards as a top salesperson and customer service agent. She currently lives in New York with her husband. Her 24 year old son recently moved out on his own which has given her more time to travel, write and train her dog Maisy not to chase her cat, Whiskey.
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