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The Basics Of Insuring Holiday Gifts

The holiday season is a time to celebrate with your family and friends. It is filled with a lot food, fun, and gifts. With the season coming to a close it is time to think about insuring your new gifts and purchases. Neglecting to do so could result in a significant financial loss if something were to happen. 

Why?

During the holiday season many people are receiving gifts that are new and of high value. With this combination being well known, this time of year also has a higher risk of theft. The majority of people who receive or give a high-valued item during the holiday season, are unaware of the key aspects when it comes to insuring those items. 

Most people assume that any items they own are automatically going to be covered under their homeowners or renters policy. In reality, unless a high-priced item is specifically listed under your inventory contents, it will likely not be covered by your policy. Also, certain items such as; jewelry, antiques, luxury items, and collectibles, could have a limit as far as how much your homeowners insurance could cover. 

With it being well known that high-priced gifts are being given during this time of year and with people being away from their homes during the holidays, a high number of thefts do occur. Protect yourself by making sure you have adaquate insurance coverage. 

What?

Any gifts that you may purchase or receive that are of a high value need insurance coverage. When considering whether or not coverage is needed think about how much it would cost to replace the gift if it were lost, stolen, or damaged. It is worth getting coverage if replacing the gift would impact your finances. 

When talking to your Farmers Union Insurance agent, you will need to know the cost of and the type of item you are looking to get coverage on.

The item could either fall under "Property Protection" which means that they may fall into being covered under your homeowners insurance policy but can be "capped" up to a certain amount. Some items may not be capped but also may not be included in your deductible.

Your item may also fall into the "Liability Protection" category. This means that along with needing to be covered under property protection, they are also a liability that should be insured. These items may include things such as swimming pools, trampolines, drones, etc. Anything that could potentially harm another person should have liability insurance. 

How?

After receiving a gift you'll want to cover it if it's worth more than your homeowners insurance cap. There are several ways your Farmers Union Insurance agent can go about doing this with you.

1. Blanket Rider: This is an add on to your current policy that will provide you with extra coverage for all of your valuable items. 

2. Scheduled Item: This is a rider on your current policy that is for one item specifically.

 

3. Standalone Coverage: This covers a specific gift with it's own small line of coverage without adding it onto a homeowners or renters policy. This is best for students or people who don't have a homeowners or renters policy. 

4. Policy Change: You may choose to switch your policy altogether. This would be in order to find a homeowners policy with a higher limit of insurance or with a more comprehensive plan. This is best for people who were already in the process of changing their insurance. 

Steps:

1. Talk to one of our agents right away to get coverage as soon as possible.

2. Get an appraisal quickly, if needed. 

3. Remind and recommend us to your friends and family. 

4. Insuring high priced gifts usually only costs you a few extra dollars a month. Enjoy your gifts with the peace of mind that you are covered.