As we were going through the TWENTY-SIX PAGE LEASE for our new apartment, we discovered that we were required to show proof of renters insurance before we could have the keys. We already had renters insurance, but figured we'd change to their suggested provider, since we were radically downsizing as well as relocating. The main purpose was to insure against potential damage that we might cause to the apartment, since we are such party animals. Secondary was a worksheet estimating the value of our possessions, and this is where it gets interesting. We had until the end of the week to put a price on everything we owned.
We did it in twelve minutes.
We've had numerous conversations over the years about what we would keep and what we would downsize in various situations. We've also had the conversation about how much insurance to get on our stuff. In the world of insurance, there is a lot of fine print, such as whether the policy includes earthquake coverage. (Assume that whatever is the most likely threat of natural disaster in your area, your insurance specifically excludes it, whether that's tornados, UFOs, giant ants, or what-have-you). Our concern was the concept of "replacement value." If our place really was completely destroyed by one of the many hazards of our fair state, not limited to flash floods, landslides, wildfire, typhoon, or earthquake, what would it cost to start from scratch? What would we actually replace and what would we shrug off?
Obviously we would replace our bed, couch, dining table, computers and desks. We would need replacement sheets and towels - but would we buy as many as we currently had? We would need to completely outfit a new kitchen - but again, would we buy as much kitchen gear as we had in our real kitchen? How do you insure food? We would need to replace our clothes and bathroom stuff. Predictably, if we started from zero, with nothing but a blank spot for a house and a big insurance payout, would we really buy the hundreds of items we had in our bedroom and bathroom again?
The shock and horror of losing everything you own must be truly devastating. It wouldn't do to be flippant about such a thought. However. My husband rode out the Northridge Earthquake, a topic that I find endlessly fascinating. We know that disaster is real. For us, a little black comedy helps when contemplating serious crisis. As long as nobody dies, if one of the many temporary homes we've rented were to be destroyed, well, we're insured and so are our landlords. The idea of starting over again, with nothing but a check, can be a cute little fantasy. If we went on a mandatory shopping spree, with hardly a sock to our name, what would we buy?
Lids without matching containers! Junk mail! Dried-up pens! Rusty paperclips! Sheets that don't match any of the mattresses in the house! Shopping extravaganza!
The sad yet liberating truth is that most of our stuff is relatively worthless. We can't calculate a replacement cost for photographs, because we can't go out and buy them again. We can't put a price on souvenirs, mementos, or memorabilia for the same reason. We can't assess the market value of his engineering drawings or software, or my manuscripts, because money wouldn't reproduce them. The only stuff we can buy with money is generic housewares.
That's exactly what insurance money would cover: generic housewares. It's not like we would suddenly be able to level up and hire an interior designer. Also note that when we pay for insurance, the more we buy, the higher the premiums. Insurance is like a fire extinguisher or a first aid kit: you hope you never need them. If we're lucky, we'll have paid hundreds or thousands of dollars over the years for insurance we never need. That would be awesome; let's pick that one.
When we learned that we would need to estimate the replacement value of everything we owned, we were undaunted. Most of what we had, we'd bought together during the past eight years of our marriage. We both attend to the value of a dollar. We had a solid memory of how much the bigger-ticket items cost, and if we didn't, we could check our digital financial records. We were ready.
There was a "Property Worksheet." It had a field for each room, and as I entered numbers, it kept a running total at the bottom. Bedroom 1. Bedroom 2. Office. Den. Kitchen. Bathroom. Living Room. Dining Room. Other/Misc. Additional living expenses.
Well, let's see. We only have one bedroom. We no longer have an office. We've never had a "den" and I have no idea what would go in one. We no longer have a separate dining room, but what the heck, let's put the price of the table and chairs there. We were chatting back and forth over text message, a conversation that included a couple of 'crying laughing' emojis. We did our own independent estimates, and got within $400 of the same amount. Then my husband recalled that none of the rooms listed included the garage, and had to come up with an estimate for his tools. Wow, that's a pretty big number, we thought. I input it in the insurance company's website.
The total price we had estimated for all our worldly goods was barely over half the lowest amount offered.
We fell about laughing, and laughed even harder when I tried changing the optional jewelry coverage. I could replace most of my wardrobe with the default option! Never spend a lot of money on anything that will fit down a drain, that's my advice.
We wound up with the lowest coverage and the highest deductible we could get. After tacking on earthquake coverage, it's still less than a dollar a day. I'd have to check, but it's almost identical to what we were paying before. Now, if our upstairs neighbor leaves the bathtub running or the sprinkler system malfunctions, we'll be financially fine.
The most important consideration, whenever our attention wanders to crisis and disaster, is to think of the living. We plan escape routes. We check our go bags. We rehearse what we'll do if we need to evacuate and get our animals to safety. We bolster our finances, maybe tuck a few more small bills in our go bags just in case. We insist on discussing emergency preparedness with our friends, who usually don't even have a jug of water set aside. We do what we can to try to make sure we'll be on the emergency response team, helping our neighbors.
It also helps to think about the priceless things. Are our work products and tools backed up? If even a single irreplaceable file exists only on one computer or one storage medium, that's asking for trouble. BACK UP YOUR DATA! If we have legacy or heirloom items, have we recorded them in some way in case the original is damaged? Photographs, letters, documents, vital records, family trees, and anything else flat can be scanned. I like to see these things distributed across a family, so everyone has a copy. Pictures can also be taken of the 3D stuff, like furniture or textiles, so that at least some visual record will survive.
Ultimately, it's all just stuff. What's important has a heartbeat. What really makes a legacy is the rich tapestry of stories, relationships, recipes, shared experiences, inside jokes and alternative song lyrics, and little mannerisms that make us family. No physical object of any description is worth a plug nickel in comparison to a strong bond of affection. Maybe we'd do better to make worksheets of our love and loyalty.
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I've been working with chronic disorganization, squalor, and hoarding for over 20 years. I'm also a marathon runner who was diagnosed with fibromyalgia and thyroid disease 17 years ago.