Electronics, jewelry, cars, and more are great gifts to both give and receive, but they can be expensive to replace if they’re lost, damaged or stolen. Before wrapping that special gift, check your insurance policy to assure that it’s covered, or purchase additional coverage if needed. 

When You Don’t Need Extra Coverage

Standard homeowners and renters policies will cover your belongings if they are lost and stolen, up to a limit. Typical limits range from $1,000 to $5,000 after your deductible is paid. For items that fall within this price range, you probably won’t need additional coverage, but you will want to keep the receipt to make a claim against your insurance if needed. 

Riders for Expensive Items

Art, jewelry, furs, an engagement ring, and more may cost more than the limits on your policy. In this situation, you will want to expand your original policy with a rider, endorsement or floater. If you know that you are planning to purchase this type of item, first speak with the experienced agents at Alliance Insurance to help select the best option for the item given your current insurance coverage.  

Coverage for Items that Increase In Value

If you purchase art, rare books, antiques, or other items that are likely to increase in value over time, remember that you want to ensure both its current and future values. Manage this process by having the item appraised every three years and adjusting your policy or rider accordingly. 

Liability Insurance 

If you are purchasing and giving a trampoline, Jet Ski, all-terrain vehicle (ATV), or other items that carry inherent risks, you may want to increase your liability insurance as well as assure that the item itself is covered. Not all insurance policies provide coverage in the event of loss or usage-related injury so you should consider a personal umbrella policy or recreational vehicle coverage to protect you and your loved ones if there is a claim. 

Cars and Insurance

Whether you pay cash for a car or finance the purchase through a lender, you will need to have insurance before you drive it off of the lot. If you are giving the car to someone you already share a policy with, simply add the car to the existing policy and transfer the title after the recipient has received it. If the car is a gift to someone who doesn’t live with you, don’t take a chance of driving it without coverage. Instead, take your loved one to the dealership and surprise them there. The title can be transferred immediately and they can insure the car at the same time. 

Other Considerations

At this time of year, there are many other issues to consider when purchasing and gifting expensive items. To protect yourself and keep everyone happy, these additional tips should help:

• Never pack expensive gifts in checked luggage because it may disappear before you arrive at your destination. 
• Protect online purchases by assuring that someone is at home to receive them or have them delivered to your office or another location where someone can take charge of them. 
• Use professional shippers for unique items, such as art, glass, and ceramics, to assure that it arrives in great condition.
• Purchase shipping insurance because some homeowner insurance policies do not cover items damaged, lost or stolen while in transit.

In addition to these tips, it’s also a good idea to update your home inventory after the holidays to assure that everything is covered and included in your policy.

If you have questions about whether your current coverage will address any gifts you plan to purchase, Alliance can help. We will review your policies and let you know if you need additional coverage and, if so, which options will best fit your needs.