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Does Your Insurance Cover Those New Holiday Gifts?



You've taken care to purchase just the right gift for that special person in your life. You'll want to take that same care in ensuring that the gift is covered by your insurance and can be enjoyed for many years.


Most homeowner’s and renter’s insurance policies only provide a limited amount of coverage for jewelry or electronics, both common gifts during the holiday season. Depending on your coverage and deductible, you may want to consider an endorsement or separate Personal Articles policy to cover your new purchases.


Does the value of my gift affect whether it's covered under my homeowner’s or renter's insurance or requires a separate policy?


Yes. Most homeowner’s, condo and renter’s policies limit the amount of coverage for misplaced or stolen jewelry. The amount varies by company, but $1,500 to $2,500 is typical, and your policy deductible would apply. Purchasing the additional coverage eliminates the deductible and specifically covers the item(s) in question.


Other items, such as tablets, laptops, or collectibles, may also carry sub-limits of coverage. When in doubt, contact your insurance advisor for confirmation.


How soon after purchasing a gift should I ensure it's covered under my policy?


If you've never added an item of jewelry to your policy, contact your insurance advisor before making the purchase. Some policies include coverage for newly acquired items, but only if you already have a personal articles policy in place. If your significant other is the one who opens the mail or pays the bills, ask your insurance advisor if the insurance company can send the invoice after you exchange gifts. Some companies can "desk bind" coverage so they won't spoil the surprise.


I bought a $5,000 watch to give my partner this holiday season. Is it covered under my homeowners or renters’ insurance?


It's probably not covered for the full $5,000. Contact your insurance advisor, who will confirm the limits that are provided by your policy.  


I'm driving to my relative's house for Christmas and have a bunch of gifts in my car. Should I be worried?


Christmas gifts in your car would be covered for theft under your homeowner's or renter's policy up to the Personal Property limit listed on the Declarations Page; however, some items may have a lower sub-limit of coverage. Like jewelry, other items that will have lower limits of coverage include gift cards, prepaid debit cards, and cash. Unfortunately, if your car is broken into, you will also have to file a separate auto insurance claim for any damage caused to the vehicle.  


The Plexus Groupe is an independent insurance advisory firm. As a broker, we work with insurance companies to find the best coverage to meet our clients' needs. Are you covered in the event of theft or loss? Click here to start a quote.