Insuring Your Christmas Gifts

Christmas is a time for giving and receiving gifts, and sometimes, we receive gifts with significant financial or sentimental value.  These are the items that we’ll not only enjoy for years to come, but perhaps pass on to the next generation as meaningful heirlooms.

These are the items that should be properly insured.

Different types of insurance will cover different types of possessions.  Of course, you should have the appropriate policies for big-ticket items like vehicles, snowmobiles, motorcycles, and other “toys”.  But what about the rest?

Most homeowners’ policies will actually cover items such as:

•  Jewelry
• Electronics (including computers and cameras)
• Antiques
• Artwork
• Collectibles (such as porcelain dolls, stamp and coin collections, and political memorabilia)
• Firearms
• Rare books
• Sports equipment

Although your homeowners’ policy will recoup some of your losses if the item is lost, stolen, or damaged, not all of them will pay the item’s full value. Another option is to purchase a policy specifically for that item (such as jewelry) that will provide full protection.

First, you should decide what kind of coverage you will need. For example, if you want to buy a policy for an engagement ring, you can purchase an individual rider.  If you have a large collection of certain items (like wine, artwork, or memorabilia) you can purchase a policy for blanket protection (be advised that most blanket protection policies will only cover items with a maximum value of $2,500).  If you’d like to insure something worth more than $50,000, then you would need to have it appraised.

There are a few options for protecting your valuables. Of course, you should speak with your agent and choose the right kind of coverage for your most precious items. Everyone wants to enjoy gifts for as long as possible, and purchasing a personal valuables policy can help you do that.

Have you ever bought insurance for your valuables? What type of policy, and what was your experience? We’d love to hear from you in the comments below!