You’ve just received a shiny new diamond bracelet from your spouse or perhaps an expensive painting from your parents as a holiday gift. These are valuable items that you treasure. But would you be covered if something were to happen to these precious gifts?
While your standard homeowners’ or renters’ insurance protects many of your everyday belongings, special valuable items often exceed normal policy limits.
These cherished holiday gifts that mean so much deserve extra safeguarding for their full replacement value. Before disaster strikes, take steps to fully protect your most treasured holiday gifts with the right coverage.
In this blog post, we’ll overview options beyond standard policies so you can find the level of protection you need in case the unexpected occurs. Read on to learn your options for fully securing those special holiday presents.
Do You Need Additional Coverage for High-Value Items?
Your homeowner’s or renter’s insurance policy includes some coverage for jewelry, fine art, electronics, and other valuables. These big-ticket items are covered under your policy for losses caused by common covered perils such as theft, fire, wind damage, and vandalism.
However, the standard coverage limit for personal items is often quite low. For example, it’s typically around $1,500 for jewelry under most basic homeowners’ or renters’ insurance policies.
That means if your jewelry is worth more than your coverage limit and is stolen or damaged, you’d only receive the $1,500 maximum payout. The remaining value would be an out-of-pocket loss. The good news is that you can add additional coverage to fully protect your most cherished possessions.
So, if you were lucky enough to receive a big-ticket item this holiday season, you may want to consider adding extra coverage to your current policy to fully cover the replacement value of your beloved new holiday gift.
How Can I Insure My High-Value Holiday Gift?
Generally, there are two main ways to insure your expensive item:
Purchase a Floater Policy
First, you can purchase a separate floater policy and “schedule” your high-value possession. Floater policies provide additional coverage beyond what a standard homeowners’ or renters’ insurance policy would cover, including accidental losses.
One important thing to note with floater policies is that you’ll need to have your valuable item professionally appraised to determine its true value before the insurance company issues a policy.
Increase Your Coverage Limit
Second, you may be able to raise the limit on your existing homeowners’ or renters’ policy to provide more coverage for valuables. This option is typically less expensive than a separate floater policy, but keep in mind there is still an overall cap on how high you can raise your limit.
So, if you have an extremely high-value item, a dedicated floater policy may be a better choice.
The best approach is to have a conversation with your insurance agent about your specific situation, including the value of your item, the amount of coverage you need, and what policy options make the most financial sense.
They can guide you through the pros and cons of floater policies vs. raising coverage limits on an existing policy.
Read also: How Much Home Insurance Should I Have?
Safeguard Your Big-Ticket Holiday Gift with TSL Insurance Group
Receiving a cherished gift can be heartwarming. Ensuring it’s properly insured gives you peace of mind. Our Risk Advisors make the process easy by evaluating your existing coverage and making personalized recommendations so your most precious belongings are protected.
With five offices across Louisiana, it’s easy to speak with an agent about safeguarding your valuables. Contact one of our offices today in Baton Rouge, Lafayette, Franklin, Abbeville, or Lutcher to schedule your no-obligation consultation on properly insuring your holiday gift and other valuable items.