The holidays are a time for family and friends to gather and celebrate the joyous season. They also provide an opportunity to spoil and surprise our loved ones with luxury gifts. This can be anything from diamond earrings to a Trek Madone Road bike — whatever the gift may be, it’s important to remember to update your home insurance policy to reflect that big-ticket item.
“During the holidays, people can get so busy that they may forget to contact their insurance advisor to update their policy with the new item,” says Lara Murched, a Client Executive with Signature by Acera Insurance. “This can put them at risk of a financial loss in the event of a claim if they don’t have the correct insurance for their new items.”
Lara says that it’s important to take the following steps to ensure that your valuables are covered.
Keep a record of your new items to add to your home inventory
When documenting your gifts, make sure that you capture the following:
- Take photographs of your valuables to aid in the claims process if they are lost or stolen.
- Ask the gift-giver to keep the original receipts or provide a copy of them to you so you can provide the information to your insurance advisor.
- Get a professional appraisal for items such as jewelry, watches and collectibles. Depending on the value of the item, your insurer might require an appraisal before they would add the item to your policy. This is especially important if the items were bought during a sale event, as you’d want the full value of a replacement item included under your policy and not the discounted price.
- Review your insurance policy limits to see if they need to be increased or if the new items are subject to any special limits of insurance under your policy. For example, jewelry, watches and bikes are often covered up to a specific limit and not up to your full personal content’s limits.
Review and update your policy limits
Depending on your home insurance provider, there are usually specific limits for different types of specialty items. It’s important to know these limits, and whether the value of your belongings in each category exceeds them.
“High-value assets may not have adequate coverage under your current home insurance policy,” says Murched. “For example, if your policy covers jewelry up to $10,000 with a per-item limit of $5,000, your new diamond necklace might need extra coverage.”
When reviewing your policy wordings to see if you have sufficient limits for the new items, pay attention to the special limits of insurance as well as your policy deductible which will apply in case of claim. Depending on the item’s documented value, you may need to schedule the new items separately to your policy or purchase separate specialized insurance.
Contact your Signature Advisor
If you are unsure of what your home insurance policy covers, or what the special limits for items are — contact your Signature by Acera Insurance advisor. We provide professional advice and guidance on the insurance limits and coverage options to find what’s best for you and your collection, as well as ongoing education and resources.