Protecting your holiday treasures: How to insure big-ticket gifts

The holidays are a time for giving and receiving, but amidst the excitement, it's important to ensure your valuable new gifts are adequately protected. High-value items like jewelry, electronics, collectibles (like sports memorabilia or comic books), and even bicycles, may have special coverage limits under standard home insurance policies.

How to make sure your gifts are covered

Most home insurance policies have specific limits for different kinds of specialty items, and you might be surprised to find out how quickly your belongings can add up to exceed these limits. It's crucial to understand these limits and consider additional coverage if the value of your belongings exceeds them. For example, if your policy covers sports memorabilia up to $2,000 with a $300 per-item limit, that signed hockey stick worth $500 will need extra protection.

Here’s how to make sure your valuable gifts are fully insured:

1. Snap a photo. Having photos of valuable items on hand can assist with the claims process in the event that an item is lost or stolen.
2. Get an appraisal (if needed). For high-value items like jewelry or collectibles, a professional appraisal is often necessary to determine their true worth. Your broker or group’s broker can advise if an appraisal is required by your insurer for specific items and before adding extra coverage to your policy. Keep the appraisal report safe.
3. Save the receipt. While it might seem awkward, ask for gift receipts. They serve as proof of purchase and are helpful for insurance purposes if you need to make a claim. If you’re not comfortable asking directly, perhaps the gift-giver can keep the receipt for safekeeping.
4. Update your home inventory. Always keep your home inventory up to date and include a detailed record for each of your valuables.
5. Review your policy limits. Once you’ve recorded your new stuff in your home inventory, add up the total value for each of the specialty categories outlined in your policy and make sure all of it fits within the limits of your coverage. Pay close attention to the “Special Limits of Insurance” section of your policy, which is where you’ll see a breakdown of coverage for specific specialty items.  
6. Contact your broker. If the value of your gifts exceeds your policy limits, contact your insurance broker or your group’s broker right away to discuss adding extra coverage, also known as “scheduling” an item. Confirm exactly what’s covered (some risks, like theft, may be excluded) and understand how claims are paid for scheduled items.

Insider insight: adding coverage for a specific item may allow you to ditch your deductible

Scheduling high-value items often means you won't have to pay a deductible if you make a claim for them. However, this isn't always the case, so check your policy details or ask your broker or your group’s broker to be certain. No matter what’s under the tree on Christmas morning, update your home inventory and contact your licensed home insurance broker or your group’s broker to make sure you have the right coverage to protect your new gear.

Did you know that different rules apply when you’re insuring jewelry and other precious items? Learn how to insure your diamond rings and fancy things.;

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