The holidays may be over, but the gifts you received — from sparkling jewelry and new tech gadgets to cherished family heirlooms — deserve lasting protection. These items hold both sentimental and financial value, and too often, they’re left vulnerable once the wrapping paper’s gone. At South Carolina Insurance Brokers (SCIB), we believe peace of mind is the best gift you can give yourself. Here’s how to make sure your holiday treasures are properly insured — so you can enjoy them for years to come.
Why Should You Insure Your Holiday Gifts?
A great reason to insure your gifts is because a standard homeowner’s insurance policy may cover some high-end items, but it usually only covers them up to a limited dollar amount, typically around $1,000 – $1,500 per item, meaning you might need to purchase a separate “personal property endorsement” or “floater” to fully insure valuable items like jewelry, art, antiques, or collectibles at their full value. When insuring high-value items, you will likely need to provide an appraisal to verify their worth. Many homeowners are under the assumption that these items are automatically protected by their homeowner’s insurance policy. However, unless an item is strictly listed under your household inventory, it’s most likely not covered.
Another good reason to insure your holiday gifts is to take the financial worry away. Life is unpredictable, and accidents, theft, or damage can happen when you least expect it. Additionally, porch pirates and break-ins are on the rise and high-value items are often more susceptible to these risks. Without the right coverage, replacing these valuables can become a significant financial burden.
Having the appropriate insurance offers peace of mind and ensures your gifts are protected, no matter what happens.
What Types of Gifts Should you Insure?
Not all gifts require insurance, but those with high value or specific risks should be covered. Here are some common examples:
- Jewelry and Watches: Rings, necklaces, bracelets, and luxury watches often carry significant value and are frequently lost or stolen, making them prime candidates for insurance. High-value pieces are often not covered under standard homeowner’s policies. A personal articles policy can provide the additional protection you need.
- Electronics: High-tech gadgets such as laptops, smartphones, and gaming consoles are often stolen and can be costly to replace. Consider extending your coverage to protect against damage, theft, or loss.
- Sporting Goods and Equipment: Expensive items like bicycles, golf clubs, skis, or outdoor gear can be insured under specialty policies for theft or accidental damage.
- Collectibles and Art: Fine art, antiques, family heirlooms, or other unique items should be appraised and may require specialized coverage to ensure they’re fully protected.
- Designer Items: High-end handbags, shoes, or accessories can be costly to replace and are often targeted by thieves.
Coverage Options for Your Holiday Gifts and High-End Items
A standard homeowner’s insurance policy does not cover personal items unless that item is strictly listed under your household inventory. Even then, high-end items have a dollar amount limit.
- Endorsement or Rider: An insurance endorsement (or “Rider”) is an add-on to your policy that allows you to increase the overall coverage of your home insurance for specific categories. When you add a rider to your policy, you essentially purchase additional coverage for category items, such as a collection of jewelry or sports equipment. By simply adding a rider, you can effectively make changes to parts of your home insurance policy without having to cancel your current policy and get another one.
- Floater: Floaters can be purchased as a separate policy or as an add-on to an existing policy. An insurance floater is similar to endorsements and riders, with one exception. Instead of increasing or extending coverage to certain categories, floaters increase or extend coverage to specific items. Jewelry and furs are among some of the most popular items that are attached to floaters.
- Scheduling Personal Property: Scheduling personal property is a process that entails adding high-value items to a homeowners policy. Remember, a normal homeowners policy will have sub-limits that limit the amount of payout that can be received from the insurance company when it comes to specific items. You have the option to add or “schedule” each high-value item as a line item on the policy with the monetary value listed with it. Having the items added right onto the homeowners policy eliminates the need for separate policies and claims if something happens.
- Standalone Coverage: If you don’t have a homeowner’s insurance policy, consider a standalone policy that covers a specific item or items. This can sometimes be referred to as “Valuable Articles Policy” or “Valuable Personal Property Policy.”
Tips to Insure Your Holiday Gifts
- Take Inventory: Make a list of your new gifts and their approximate value. For high-value items, you may need an appraisal.
- Document Everything: Keep receipts, appraisals, and photos of your items in a secure place or safe. This documentation will come in handy in case you need to file a claim.
- Review Your Current Policy: Check whether your existing homeowner’s or renter’s insurance covers personal property. Pay attention to coverage limits and exclusions.
- Consider Special Coverage Options: For high-value items, consider special add-on or standalone policies that offer comprehensive coverage tailored to the specific type of item.
- Talk to an Insurance Professional: Our team at South Carolina Insurance Brokers is here to help you navigate your options and ensure your coverage meets your needs.
The Gift of Peace of Mind
At South Carolina Insurance Brokers, we understand how much these gifts mean to you. We want you to have peace of mind and be able to enjoy your new gifts with your family. Having the right insurance coverage means you can rest easy without worry. If something happens, you’ll have the financial backing to repair or replace your item, ensuring it remains a source of joy rather than stress.
Don’t wait until it’s too late. Take the first step toward protecting your valuables today. Let us show you how insuring your holiday gifts is simple and affordable. Contact us to review your current policies or to add coverage and ensure that your most valued items are covered for years to come.
