When all the wrapping paper has been thrown away, and you bask in the glow of another happy holiday, the last thing you want to think about is whether or not your new gifts are covered by your insurance. We get it. But if Santa’s been extra good to you this year, you may want to put down that eggnog and check to see that you’d be covered if your new goodies were lost, stolen, or destroyed.
Even if you didn’t find a new car with a bow on top in your driveway on Christmas morning, you still might need to think about insuring your pricey presents. For instance:
Jewelry is covered under the contents portion of your homeowners or renters insurance policy, but only up to a certain limit (often $1,500). Items such as engagement rings, high-end watches, and tennis bracelets may go over your policy’s limits, leaving them unprotected. If so, you’ll need to raise your limits, or buy a special “rider” or “floater” policy to cover your new bling. Talk to your L & M Insurance Group agent about appropriate coverage, and what steps you’ll need to take to get it.
These items will likely be covered under the contents portion of your homeowners or renters policy, but you should review your policy to see if your limits are adequate for all your personal property, including your new gifts.
If you receive a piece of fine art as a gift, you will likely need specialized fine art insurance. Most standard homeowners policies won’t provide enough coverage for high-value art.
Also remember to:
Make sure you keep receipts if you have them, and add your new property to your home inventory list.
Double check the type of coverage you carry, i.e., replacement cost or actual cash value. “Replacement cost” covers the amount you would need to replace the item with a new, similar item, and actual cash value will cover the cost of replacing the item minus depreciation for that item. We almost always recommend replacement cost coverage.
Don’t assume your pricey presents are covered. Review your policy, or give your L & M Insurance Group agent a call at 813-672-4100 (or contact us) to be sure your holiday gifts are protected.