Remember to Insure Valuable Gifts

Protect your valuable gifts by adding them to your insurance policy.

The holidays provide us with good reasons for presenting special – and often valuable – gifts to our loved ones. In the excitement of surprising someone with a gift that makes a big impression, don’t forget to make sure it’s properly insured to protect against loss, theft or damage.

It’s natural to want to bask in the warm feelings of giving someone special a present that wows, so consider insuring the gift as soon as you purchase it, giving you peace of mind and financial security in case the unexpected happens.

Things to Keep in Mind when Insuring New Jewelry and Valuables

Consider taking advantage of a store or manufacturer’s warranties or guarantees, but don’t mistake them for insurance.

For example, some major jewelry chains offer limited guarantees on gemstone and diamond replacement or repairs. This is a wonderful perk so long as the store is in business and you comply with regular inspections and the terms of the guarantee agreement. But in the event that your jewelry is lost or stolen, it is unlikely that the store will be able to help you. Talk with your insurance agent about your valuables and the best options to protect them.

Insure your expensive purchases to value, not just what you paid for them.

Door buster specials during the holiday season may enable you to get a remarkable price on an item, but if you only insure for the price paid, you may not be able to get that same deal if you have to replace it later. The value of precious metals and gemstones fluctuates, so getting an appraisal can help you and your agent determine the appropriate amount of insurance. Don’t hesitate to ask your jeweler to provide an appraisal gratis as a way to close the deal. It never hurts to ask, and the cost of an appraisal may be worth it to the jeweler to make the sale.

Take a photo of new, valuable items.

Have these available along with any copies of the receipt, serial number, appraisal or certificate – when you talk to your agent about the right coverage for your items.

Get to know your policy’s limits.

Coverage for expensive electronics differs from the protection for a diamond bracelet. Your agent can help you understand your policy and customize it to make sure it protects all your valuables, whether the item is something you watch, listen to or wear.

Are Valuables Covered on my Homeowner Policy?

You may be thinking, “Most homeowner policies have built-in limits that cover high ticket items, right?” The answer is that it depends on what you already own, because you may have already reached those limits opening the need for a personal articles floater, an entirely separate policy not connected with your existing homeowner policy. To be sure you’re properly covered, talk with your agent about what will work best for your new valuables.

This loss control information is advisory only. The author assumes no responsibility for management or control of loss control activities. Not all exposures are identified in this article. Contact your local, independent insurance agent for coverage advice and policy service.