clock December 21, 2021 comments No Comments flowchart Automobile InsuranceFamily & Home CareHomeowners InsuranceOur BlogRenters Insurance tag

It is the time for gifting, but have you considered the insurance implications? What would happen if an expensive new gift was stolen, lost, or damaged? Would your insurance cover it?

Insure Packages

If you’re planning on having a gift delivered, ensure that the seller offers insurance. Otherwise, you may need to buy it yourself.

Packages are often stolen and expensive items can also be damaged during transport. Use a shipping method that requires a signature to avoid delivery disputes.

When You May Need More Coverage

You might think your gift is safely in your home and that your homeowners insurance policy will cover you since it includes Coverage C for personal property. However, all insurance policies include limits on high-ticket items.

For instance, your policy may have a limit of $2,500 for jewelry. If you’ve bought an expensive necklace for your wife or a collectible watch for your husband for, you could easily go over that limit.

Keep in mind that these limits apply to all items within the category. So, if someone breaks in and steals all your wife’s jewelry, your policy would only offer $2,500 for everything, not $2,500 per item.

Obviously, it makes sense to obtain more coverage in this case or whenever replacement of an item could cause you financial stress.

Items That May Have Special Coverage Limits

Every policy differs as do the special limits on specific items. However, most policies limit compensation on the following items to between $1,000 and $5,000. Some of them might surprise you:

  • Jewelry, watches, & precious gems
  • Sporting equipment such as golf clubs, skis, hockey gear, and bicycles
  • Collections such as trading cards, stamps, comic books, vinyl records, coins, and wine
  • Antiques & heirlooms
  • Fine art
  • Furs
  • Firearms
  • Musical instruments & equipment
  • Cameras & photography equipment
  • China & silverware
  • Tablets, computers, gaming consoles, and any other electronic devices as well as software
  • Cash & securities
  • Watercraft such as kayaks, canoes, stand up paddleboards, & sailing dinghy
  • Vehicles

How to Expand Coverage

You may be able to expand your home or renters insurance with a “scheduled” rider, floater or endorsement. The cost of coverage is based on either their cost or their current value. As a result, increased coverage usually requires a receipt or an appraisal to ascertain value.

In some cases, you may need to buy a standalone policy. For instance, you’ll need an auto insurance policy before you drive the vehicle off the lot. If the recipient is already on your auto insurance policy, just add the vehicle and transfer the title later.

However, if the person isn’t on your policy, you must handle things differently. Surprise them at the dealership so they can insure and title the vehicle on-site.

We strongly suggest you contact your insurance agent so they can review your policy. Besides special limits, there may be restrictions or exclusions on some property.

Additionally, policies cover some perils, but may not cover them all. Some offer actual cash value compensation which includes depreciation, while others offer replacement value. It’s important you align your coverage to your needs and a professional insurance agent can help you do that. If you’re unsure if you’ll need additional coverage this holiday season, give us a call! We’ll talk you through it.

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