Home asset audit checklist: how to avoid underinsurance in South Africa

A home asset audit is a room-by-room inventory of the possessions in a household, supported by current replacement values and ownership records. It helps a homeowner or tenant compare the total cost of replacing belongings with the insured amount, identify items needing separate cover and organise evidence before theft, fire or another insured loss occurs.

Memory is unreliable after a stressful loss, and the large items are only part of the total. Clothing, linen, cookware, small appliances, books, tools, sports gear and home-office equipment can collectively be worth more than expected. An audit gives the insurer a more accurate risk picture and gives the household a practical record for reviewing cover and supporting a future claim.

Replacement value is the current cost of replacing a lost or damaged item with a new comparable item, subject to the policy wording. It is not the original purchase price, sentimental value, resale value or a depreciated second-hand estimate. Miway’s current Personal Insurance policy wording says MiHomeStuff must be insured for its total replacement value: the cost of replacing lost or damaged items with new ones.

Underinsurance occurs when the insured amount is below the value required by the policy. Miway’s current wording says an underinsured MiHomeStuff claim may be paid proportionately less. Illustration: if contents worth R750,000 are insured for R500,000, the household is insured for two-thirds of the correct value. A covered R90,000 loss could therefore be reduced to about R60,000 before an excess or other policy deductions. Actual settlements remain claim- and policy-specific.

Classifying an asset correctly is as important as valuing it. The policy wording and Coversheet determine the final category.

Use a repeatable process so that small items, outbuildings and portable valuables are not overlooked.

1. Work room by room: Include cupboards, wardrobes, the garage, storerooms, domestic quarters and garden structures where relevant.
2. Record useful identifiers: Capture the item, quantity, brand, model, serial number, approximate purchase date and owner.
3. Photograph the contents: Take wide room images and close-ups of valuable items, labels and serial numbers.
4. Research current prices: Use recent quotes or reputable retail listings for a new comparable replacement, not a second-hand sale price.
5. Flag special items: Mark jewellery, art, collections, electronics, bicycles, business equipment and possessions regularly taken outside.
6. Add the totals: Calculate the total replacement value, then compare it with the insured amount and relevant category limits on the Coversheet.
7. Store evidence safely: Keep a secure cloud or off-site copy of the inventory, receipts, valuations, warranties and photographs.
8. Contact the insurer: Discuss material differences, classifications, limits, security requirements and any policy amendment before assuming an item is covered.

Living areas: Curtains, rugs, lamps, décor, books, speakers, gaming consoles and smaller electronics.
Kitchen: Cookware, crockery, cutlery, coffee machines, air fryers, mixers and countertop appliances.
Bedrooms: Clothing, shoes, linen, luggage, watches, jewellery and personal-care devices.
Home office: Monitors, routers, printers, chairs, headsets and personally owned laptops or accessories.
Garage and outbuildings: Tools, garden equipment, camping gear, bicycles and stored household goods.
Power and security: Portable power stations, generators, inverters, batteries, cameras and alarm equipment; confirm whether fixed installations belong under buildings cover.

Review the inventory at least once a year and after material changes. Useful triggers include moving home, renovating, setting up a home office, receiving a valuable gift, inheriting jewellery or art, buying new furniture or electronics, installing backup power, replacing several appliances or changing household members. Notify the insurer when the policy requires disclosure; do not wait for the annual audit after a major change.

Yes. A landlord’s buildings insurance generally protects the structure, not everything owned by the tenant. Renters can use the same inventory method to value furniture, clothing, electronics and other personal possessions, then confirm suitable home contents and moveables cover for items kept at home or carried outside.

A do-it-yourself audit can cost nothing beyond time. Current retail prices and MiWay’s downloadable inventory can provide a practical starting point. Professional valuations may be worthwhile for jewellery, art, antiques, collectibles or specialised equipment. Updating the insured amount can change the premium, so ask for the revised premium, excesses, limits and terms in writing.

The benefits include a more accurate insured value, stronger proof of ownership, easier policy reviews and better claim preparation. The work takes time, valuations can cost money and storing sensitive household information creates a privacy responsibility. Use secure storage, limit access and update the record in manageable batches rather than postponing the entire audit.

No. An inventory supports valuation and evidence, but cover still depends on the insured event, selected cover, policy limits, security requirements, exclusions and the facts of the claim. Keep truthful, current records and report a loss promptly. An audit improves preparedness; it does not replace the Coversheet or policy wording.

The most useful audit is not a perfect spreadsheet completed once. It is a living record with a clear owner and an update habit. Photograph each room annually, add major purchases when they enter the home and review totals against the Coversheet. That small routine is easier than rebuilding years of evidence after a loss.