The holiday season is a common time to pop the question with a shiny
engagement ring or to buy an expensive gift for a loved one. Insurance should
factor in when buying valuable gifts like jewelry, vehicles and major
electronics. The National Association of Insurance Commissioners (NAIC)
offers these considerations for insuring these gifts.
Know Your Coverage
Most homeowners and
renter's insurance includes limited coverage for jewelry. Most policies will
protect against theft, but you may need additional coverage to protect your
jewelry against damage or loss. Check with your insurance agent to better
understand the scope of your policy.
If it's not enough to
cover the items you want to protect, consider purchasing a separate policy or
adding an endorsement to your existing policy.
Obtain an Appraisal
An item's dollar value
has the most influence on your premium and deductible, which is why an
accurate appraisal is important. Plan on providing your receipt and a recent
Purchasing a Vehicle
as a Gift
you're buying a new car, SUV or truck as a gift, make sure the recipient
updates their insurance. If you share an auto insurance policy with the person
receiving the new gift, the process can be easy. Simply add the car to your
shared policy and transfer the title.
Your Home Inventory
Remember to add any expensive or
sizable gifts to your home inventory. If you need to start a home inventory, we
encourage you to use the NAIC myHOME Scr.APP.book application (Apple Play or Google Play) or the Insure U checklist. Include as many details as you can,
take photos of each item and take videos of rooms in your house. Most home
insurance policies have standard limits for big-ticket items like electronics,
art, jewelry or sporting equipment. You may need special coverage.