Don’t Forget to Insure That Special Gift This Holiday SeasonPosted on Nov 27, 2018
Tis the season for gift giving. Some gifts put a much larger dent in your wallet than others. That is why it’s so important to make sure you get the right kind of insurance to help you protect your investment in costlier holiday gifts. Fortunately, there are several avenues available to you. Depending on the type of gift you purchase your friend or family member, including those listed below.
Expensive gifts come in all shapes and sizes. Some come in miniature boxes, like jewelry, you can hide away in a drawer until the special time arrives. Others require more creative storage ideas, like automobiles, golf club sets, boats, TVs, and/or sporting equipment.
Unfortunately, high-value items you purchase as holiday gifts are not fully covered by your homeowner’s insurance policy. In fact, you may be surprised to learn that only a small portion of the item’s value is protected. And that value varies from policy to policy and insurer to insurer.
This is why it is important, during this most wonderful time of the year, to discuss big purchases with your independent insurance agent before you make them. That way you can leave the shop knowing that your purchase is protected with rock star personal insurance coverage no matter what happens. The same applies if you receive an expensive gift as well.
What Could Happen That Would Jeopardize Your Purchases or Gifts Received?
Insurance is all about providing protection from the inevitable “what ifs” in life. All kinds of things could happen that would damage or destroy your expensive holiday gifts before you have the opportunity to put a sparkle in someone’s eye.
- An auto accident that damages items.
- A theft in your home.
- A theft from your vehicle.
- Home fires, which are extremely common during this time of year due to the widespread use of heaters and holiday lights.
- Violent weather
The bottom line is that you or the gift giver has placed a lot of thought into finding the perfect holiday gift. You want to make sure the intended recipient receives the gift you so thoughtfully purchased and has the opportunity to enjoy the present. Getting the right insurance for your purchase is one way to make sure that happens.
Buying Insurance for Holiday Gifts
Fortunately for you, it is easier than ever to work with your insurance agent to get discrete insurance coverage for holiday gifts and to determine if your gifts require additional insurance protection. Plus, you need to know what kind of protection your gifts need.
Otherwise, you could find yourself feeling like somewhat of a “humbug” when Christmas rolls around, and you have no gifts to give because of a fire, burglary, or auto accident.
Your first step is to contact your independent insurance representative to ask about rider policies or raising your existing coverage limits to accommodate the costs of replacing your gifts. Keep in mind, of course, that deductibles apply in these situations and can take a bite out of the coverage as well. However, increasing your deductible slightly to salvage a high-value gift is a small price to pay.
It’s also best to have an actual discussion with your insurance agent before purchasing the gift. That way you can make sure the surprise isn’t spoiled by having the additional coverage show up on a joint statement, as could be the case with a car for example.
Vehicles are one exception to the general rule about insuring holiday gifts if you and the person receiving the gift have separate auto policies. If you have a joint policy, it’s no big deal. You just add the car to your shared auto insurance policy and transfer the title after you’ve given your gift.
However, if you have separate insurance or live separately, insuring the vehicles becomes a bit trickier. In this case, it might be best to offer the surprise at the dealership with your loved one by your side, so you can handle tricky title issues and insurance before leaving.
Getting the right insurance to protect your holiday gifts means you can protect your investment in the holiday joy of people who matter to you.