What Holiday Gifts Need Insurance Coverage? 

December is the season of giving. You may be gifting precious items to loved ones and friends and receiving similar items in return. Amid this time of goodwill comes an important question: Do valuable gifts need insurance?

What Insurance is Available for Gifts?

Various forms of insurance may be available to help protect the value of gifts you send or receive. Here are potential coverages to consider:

• Contents coverage—This form of insurance is typically available as part of a home or renters insurance policy. It is designed to cover the value of your possessions, such as furniture, electronics and clothing; it may also cover gifts you receive. Importantly, contents coverage has limits, meaning your policy will only pay up to a certain amount if possessions are damaged or stolen. Evaluate your policy and consider adjusting your limits as needed.

• Scheduled personal property—This form of insurance may be available as an endorsement to your home or renters insurance policy; it might also be available by itself. Scheduling personal property means insuring a specific, high-value item, such as a piece of jewelry or an expensive electronic. Since contents coverage has certain limits, scheduled personal property coverage can help bridge the gap for valuable items. Moreover, this coverage may allow you to insure an item you’re gifting to someone else.

How Do I Know if I Should Insure a Gift?

Deciding whether to insure a gift is usually a personal decision. Consider the value of the items you’re gifting and the cost of replacing them. If they’re particularly expensive, insurance may be a wise option.

Similarly, if you receive a high-value gift, it can be smart to review your insurance to ensure it can help pay for its damage or replacement after a covered event.

Ultimately, Atlas Insurance Group Services is here to help you understand your options. We can help evaluate your circumstances, review your coverage and make suitable recommendations. Contact us today to learn more about the value of insuring gifts this holiday season.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.