Did you give or receive an expensive gift for the holidays? Insuring it properly is important. Depending on the type of gift, there may be various options available. Let’s discuss how to insure an expensive gift.
EXPAND YOUR CURRENT HOMEOWNERS POLICY
Your current homeowner’s policy covers damaged or stolen items, but coverage for valuable items is usually limited to $1000 to $5000. This is AFTER your deductible, which is the amount you’re responsible for paying before your insurance kicks in. If you’re not sure what your policy actually covers, you should check with your account representative at Nicholas / Tobin Insurance.
For expensive items like jewelry or art, you’ll want a rider. Adding a rider to your policy allows you to insure costly items at their cost or value. You will need a bill of sale or a certified appraisal as proof of worth.
In some cases, you may want a standalone policy. Some insurers specialize in certain types of policies, such as those covering boats, electronics, or jewelry. The benefit of a standalone policy is that you may have more coverage options than with your homeowner’s policy; the downside is you may lose the potential savings you get when you bundle different types of insurance coverages.
You may also need a standalone policy if the item purchased is a gift for someone who doesn’t live in your household, because you won’t be able to add it to your homeowner’s insurance policy. If the item is going to be used in a work environment, it would also be ineligible for coverage under your homeowner’s insurance.
SPECIAL COVERAGE FOR ITEMS THAT APPRECIATE IN VALUE
If you’re gifting an item that has the potential to increase in value over time, such as antiques, art or other heirlooms, you’ll want a rider that will pay the appreciated value if the item is stolen or damaged. This type of policy requires a new appraisal every so often. Ask your insurance agent at Nicholas / Tobin Insurance how often you will need to have the item appraised in order to meet the requirements for the rider.
Vacations make wonderful gifts, but the insurance coverage needs to be in the giftee’s name. Most people are familiar with standalone insurance policies that cover individual trips, but did you also know you can purchase a family policy that covers every trip for every member of your household? Talk to your insurance agent about this type of policy. It’s surprisingly inexpensive. If you and your family members travel often, it’s more cost effective than purchasing coverage trip by trip.
If you’re purchasing a car for a loved one, they need to have car insurance in their own name. You won’t be able to drive the car off the lot without it. If you share an auto insurance policy, then it will be relatively easy for you to take care of. You can simply add the car to your own policy, and then transfer the title later. If you’re buying a car from someone who doesn’t live in the same household, you probably should plan for your “surprise” to take place at the dealership, so that the title and insurance is taken care of correctly when the purchase takes place.
If you’re unsure of how to insure an expensive gift, contact your insurance professional at Nicholas / Tobin Insurance…we’re happy to assist you!
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Nicholas / Tobin Insurance, located in New Milford, Connecticut, provides its clients the highest quality insurance products and services available today to protect them, their families, and businesses. We offer homeowners insurance, renters insurance, car insurance, business insurance, travel insurance and more! Our commitment to service means our team of licensed insurance professionals is here to help with simple policy questions, consult with you to determine appropriate coverage and be available 24/7 when trouble strikes and you need assistance managing through the claim process.