The holiday shopping season is in full swing. Maybe you have all your gifts purchased or prefer to buy gifts closer to the last minute. Let’s face it; insurance is undoubtedly the last thing on your mind Christmas morning. However, when it comes to big-ticket gifts, taking a few extra steps will help ensure those special gifts are well protected.
Make sure your home or tenant insurance policy will cover new high-value items.
Most home and tenant insurance policies outline specific limits for different specialty items. You might be surprised to find out how quickly your belongings can add and potentially exceed these limits. If your belongings in any given category add up to an amount that goes beyond the limit, it’s best to get extra coverage to make sure you have the protection you need.
After you’ve unwrapped your new gifts and the holiday celebrations are over, do these tasks to make sure you’ll be well protected by your home or tenant insurance policy.
- Keep those receipts. It helps to have proof of purchase when adding an expensive item to your home insurance policy. This is a smart way to go if you ever need to make a claim for an item that did not require an appraisal when adding it to your policy. If you ask the gift-giver that you need the receipt for insurance purposes, they’ll probably understand. Or, if that’s a little uncomfortable, ask the gift-giver to hang onto the receipt for you instead – for insurance purposes.
- Take a photo. Having photos of valuable items can assist with the claims process if that precious gift is lost or stolen.
- Take stock after the holidays. Keeping an up-to-date inventory of home items is wise and helpful makes insurance claims easier. With new gifts in hand, the holidays are an ideal time of year to update your home personal items inventory.
- Review your policy limits & deductibles. With your newly updated home inventory in hand, ensure all of your stuff fits within the special category limits of your coverage. This is especially true if you are lucky enough to get expensive gifts. Take note of the “Limits of Insurance” section, where you’ll see a breakdown of coverage for specific specialty items.
- Get those specialty items appraised. To find out the actual value of certain items, such as jewelry memorabilia, you’ll probably need to have it appraised by a professional. Keep the appraiser’s report on hand — you may need to show it to your broker. Some insurers require appraisals before adding extra coverage for certain specialty items to your policy. Be proactive and ask your insurance advisor if any items on your policy need an appraisal.
Do you need to update your deductible after adding items to your home or tenant insurance?
Your insurance policy should state a maximum coverage and deductible for losses of high-value items such as watches, precious stones, jewelry, or memorabilia. If you acquire personal items valued at more than the maximum coverage amount, you should consider supplemental scheduled property coverage.
The assigning of value to insured personal property items will vary by the insurance provider. Most will require copies of either a receipt or an appraisal of the item before providing the coverage. In situations such as this, it is best to speak with your insurance advisor or broker to ensure you get the right insurance coverage.
When adding personal items to your home insurance or tenant insurance policy, it is always wise to talk with your insurance advisor. Suppose the value of your new gift puts you over the applicable coverage limit in your policy. In that case, you will likely need to add additional coverage for the specific item you want to insure. Ask your Bauld Insurance advisor or broker to confirm what coverage is available for the new item and how any claims are paid.