What’s in Your Closet? Valuing Your Personal Property

Whats in your closet? Valuing your personal property

3 Trillion, 3 Billion………It’s hard to believe the world’s domestic gross product for global apparel.  The luxury goods category rocks the meter at $338.4 billion.  So, why does this matter?  Clients often underestimate the REPLACEMENT value of their wardrobe and “what’s in their closet.”

We acquire a nice little nest egg of “stuff” over the years and tend to summarize the value on a very small scale. Women can be more so the accomplice here with their highly valued handbags, shoes, and couture items they shuffle in and out of their closets, paying less attention to what the big picture might look like for values.  Has anyone ever heard the words “Oh, I’ve had this old thing forever?”

Fashion has become a dominating power factor with the “It” bags and red bottom Christian Louboutin’s.  The “power suit” is from yester-year and the new player is what you’re carrying on your arm or have wrapped around your foot.  Louis Vuitton, Hermes, Gucci, and Chanel made the cut on the Forbes World’s Most Valuable Brands list for 2017.   We were drawn to watch Carrie Bradshaw as she stepped out with her friends dripping of high fashion and gasped at how she’d spent $40,000+ for shoes.  Yes, it’s a television show but it set the stage for many of us to desire and acquire pretty and sparkly things.

Hermes broke record auction sales with their albino crocodile Birkin selling at $300,000 this last June.  When did handbags become an investment you say?  When one pays more for the coveted “Birkin” than their first car or more than their first home for the “exotic Birkin.”  These custom hand-crafted bags come with a long wait list and exclusivity among their owners.

One can become a collector and not even know it.  You start with your first designer handbag in 1983, paying $200 for that must-have Gucci bag.  You keep it as a staple in your wardrobe and eventually it gets overtaken by the new Louis Vuitton and so on.  As the years go by, you haven’t realized the replacement value of these items and that replacing with like kind and quality now, your Gucci bag is now $2000.  How many bags have you acquired over the years?  How many shoes have you loved and pushed to the back of your closet to make room for the new ones?  How many pairs of designer jeans, dresses, pants, shirts, etc. have you forgotten hang in your closet in multiples?  When buying a home, the glorious over-sized closet is high on the want list.  This isn’t because it’s another play area for the children!

Ladies, collection queens, and significant others that may embellish you with gifts, it’s important to be mindful of your needs on the insurance piece, so those treasured items don’t vanish without the right coverage and means to replace them!  At the end of the day, It’s all about the shopping journey!

To learn more and for access to personal property inventory forms created by Propel, please contact Sue Greer (sue.greer@propelinsurance.com).

Sue Greer

Sue is an expert in crafting customized solutions for individuals that provide the protection they need for home, auto, boat, recreational vehicle, and prized possessions.
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