Christmas Gift Insurance
Sunday, December 1, 2013
Christmas gift insurance is uncommon, but can be purchased by those who believe they need it. Most people have never even given it a thought. This is what you need to know:
- If you have a lot of expensve gifts under your tree that you have not included in the valuation of your household contents, your insurer may not want to pay out if it is stolen, and almost certainly will not pay out if it is destroyed in a fire along with your other possessions. Many insurance companies temporarily increase their clients' household contents coverage for December. If such an option is available, and you think the gifts under your tree are sufficiently valuable, this is a good option. Some insurers even add it automatically and for free.
- Your auto insurance policy does not cover gifts that are stolen from your car, and many home policies do not cover it either. Ask your insurer whether your home policy covers your possessions outside your house, and make sure the insured value of your household contents, including gifts, is accurate.
- If you have extremely pricy, unusual or one-of-a-kind gifts under your tree, insure them separately. For example, sports or music memorabilia, jewellery, art works, and so forth.
- Many Christmas gifts are mailed or send via courier. Most people insure their parcels, but not for the value of the gift inside. They then find that they cannot replace the object if the parcel is lost. A courier is typically safer than postage, and expensive gifts should be insured for the amount it would cost to replace them.
- Like your other possessions, your insurance company will pay out Christmas gift claims only if it can verify that you took some effort to safeguard it. For example, you should not expect much sympathy if wrapped gifts get stolen from the open boot of a vehicle that is parked in the street. Burglaries increase by about 20 per cent over the Christmas period, so keep your doors locked and your burglar alarm on when you are away from home.
Buying Christmas gifts once can be pricy, but buying them twice is prohibitive. Insurance is much cheaper.