Date Published: 2023/04/03

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Is that covered? Find out if you need to insure your expensive gifts

A Black man in a denim shirt relaxing on his couch. He is smiling as his partner, a Black woman with braids, wearing glasses, leans over his shoulder and passes him a gift wrapped in red paper and tied with gold ribbon.

If you receive or buy yourself a special gift this year, you’ll probably do your best to keep it safe and secure. Did you know that some specialty or high-value items like jewelry, watches or art require additional coverage to be fully insured? Read on to learn how you can ensure your valuables are fully covered by your insurance policy.

What’s covered by insurance?

Property insurance protects the contents of your home and your belongings no matter where they are in the world. Whether your diamond ring is stolen while on a trip or a fire damages your kitchen appliances, your home insurance coverage will help cover the repairs or replacement cost. 

However, policies do have specific limits for specialty items, such as jewelry and watches,  fine art, silverware, wine collections, computer software, and more. If your gift falls into one of those categories, review your policy’s limits for the category. If the value of your belongings in a specific category exceeds the specified limit of your policy, you’ll need to purchase additional coverage to cover the full value. Unsure if your item or collection falls within the limits? Contact your broker to review your coverage and options.

Steps to securing coverage for your gift

1. Keep a record of how much it’s worth. 

For most items, keeping a receipt of the purchase will be enough to prove its value to the insurance company. Although asking for the receipt for a gift might be awkward, if you tell the gift giver that it’s for insurance purposes they’ll probably understand. The thermal paper typically used for receipts will fade over time, so make sure you take a picture.

Jewelry and antiques need to be appraised by a certified and reputable appraiser. Keep this appraisal in a safe place so you can provide it to your broker if needed.

2. Take a photo and store it with your home inventory

Having a photo of the item can help with the claims process. Safely store the photo with the rest of your home inventory. If you haven’t started a home inventory, learn why it’s important to know how much your belongings are worth.

3. Review your policy

In your home insurance policy, there will be a section about special limits of insurance which lists the limits for each of the specialty categories. Using your home inventory, add up all the items you own in each category to see if their value exceeds the limit — if they do exceed the limit, you may need additional coverage.

4. Call your insurance provider

If your belongings in a category do exceed the category’s limit, it’s time to call your broker to discuss additional coverage options. When you purchase additional coverage for an item, you may not have to pay the deductible if there’s a loss. Also, adding additional coverage doesn’t always come with a huge price tag. Your broker will review coverage and pricing options that suit your budget.

5. Keep your new gift safe

Even if your valuables are covered, the original gift probably has sentimental value. Keep it safe by leaving it at home when you can or storing it somewhere with a high-quality lock when possible. Leaving valuables in your gym locker or car, even if locked, can be a target for theft. In your home, consider keeping valuables like expensive jewelry in a fireproof safe. 

If you’d like to talk to your Orbit insurance broker about adding additional coverage for a gift onto your insurance policy, or get a quote on a new policy, call 877-976-7248 .

Don’t have a broker? Give us a call. The Orbit team is here to help.