Before being able to calculate your home insurance premium, the insurer will need to estimate your "content", i.e. put a value on your possessions.
To avoid having to calculate the value of your contents yourself, the insurer can offer you an estimate calculated from the average data of its clients based on the size of your home.
For example, for a 50 m² rented apartment, AXA recommends that you insure € 22,000 of property. For an additional 30 m², the total estimated amount is € 35,000. For a 150 m² house (without a basement) the contents are valued at € 53 000. This amount is indexed each year so in the event of a claim you can rest assured: furniture, clothing, household appliances... everything is covered!
What if this evaluation seems too expensive to you? You are under no obligation to follow the insurer's recommendations. You can estimate the amount of your property yourself. But be aware that, in the event of damage, an expert is sent out to assess the damage. However, the latter often observes that the amount assessed by clients is less than the actual amount of their property. We all tend to undervalue our assets. In the event of underinsurance, the expert evaluates the difference between the insured amount and the actual amount of what you own.
Let's imagine that you are insured for € 5,000 when the actual value of your belongings is € 10 000. As a result, only 50% of the value of your content is covered. The insurer therefore applies the same correction coefficient to your reimbursement. If a claim occurs under these conditions, instead of receiving the full amount due to you, you will only be reimbursed half.