Getting a nice gift at the holidays can be a wonderful surprise. Maybe it was a piece of jewelry that they never expected. It might have been a new car or something to add to a growing collection. Beyond the sentimental value, these gifts are also monetarily valuable. If they break or are lost, the cost to repair or replace them could be devastating — if they’re even replaceable.
When you give or receive valuable gifts, you also need to think about insuring them.
Talk to Your Insurance Agent Before You Buy
If you’re buying a valuable gift, contact your independent insurance agent before you make the purchase. We can tell you whether your existing coverage will be adequate or if you’ll need a special rider or specialty insurance coverage. This may help you decide which gift to buy or help you insure it as soon as possible.
Expand Your Existing Insurance Coverage
When you give a valuable gift to someone who lives with you, insurance coverage may be as simple as expanding what you already have. Depending on the gift, increasing your existing coverage could be all you need to do. But if the valuable item is recognized by your policy within a specific class, you need a scheduled rider, floater, or endorsement. This includes jewelry, fine art, precious metal, coins, furs, antiques, and other collectibles and high-value items.
Scheduled riders are insured based on the cost or value of the item. You’ll need to present certified appraisal documentation or the bill of sale to show the cost or value. If your gift is something that increases in value over time, like fine art or an antique, you’ll need to have it appraised every one to three years.
In some cases, expanding a homeowner’s insurance policy isn’t possible or the right option for a valuable gift. You may need a specialty policy for a new boat, a large collection, a classic car, or some other item.
But in other situations, the gift may be for someone who doesn’t live with you. Once the merriment dies down, make sure to remind them to get their new valuable insured. Share the name and contact information of an independent insurance agency that you trust and work with — this saves them the time of searching for someone to call.
The other time standalone coverage is required is if the valuable gift is a car. For your spouse or a child who lives with you, it’s as simple as adding the vehicle to your existing auto insurance policy. But if it’s not for someone in your household, you’ll have to insure it when you leave the lot before you give it to them. In this case, it might be better to “give” them their present at the dealership so insurance and title can be dealt with there.
If you love giving valuable gifts each year, consider the insurance needs when you make your next purchase. And if you received a valuable gift, get it insured as soon as possible. We can help you protect all of your valuable items.