• Home
  • Get A Quote
  • Customer Service
  • Personal Carriers
  • Business Carriers
  • About Us
  • Employee Directory
  • Locations
  • Testimonials
  • Privacy Policy
  • Contact Us
  • Refer a Friend
  • Video Library
Call Us CALL US TODAY | (850) 424-6979
Home
  • Home
  • Get A Quote
  • Customer Service
  • Carriers
    • Personal
    • Business
  • Resources
    • Insurance Topic Flyers
    • My Insurance Program Cards
    • Real Estate Agents Information
    • File a Claim
    • Important Files
    • Insurance Glossary
    • Make a Payment
    • News Center
    • Secure Area
    • Important Links
    • Calculators
  • About Us
    • About Us
    • Advisory Board
    • Employee Directory
    • Location(s)
    • Privacy Policy
    • Testimonials
  • Contact
    • Contact Us
    • Join our Newsletter
  • Refer A Friend
  • Video Library
    • Annual Insurance Review
    • Auto Insurance Made Easy
    • Auto – What To Do in An Accident
    • Business Owners Policy
    • Condo Insurance Made Easy
    • Cyber Attacks are Skyrocketing
    • Flood Insurance
    • Homeowners Insurance Made Easy
    • Home Inventory Checklist
    • Life Insurance – How Much Do You Need
    • Life Insurance – Term vs Permanent
    • Life Insurance – Protection from Financial Hardship
    • Renters Insurance Made Easy
    • Umbrella – Protect You and Your Family
Homeowners Insurance HOME

A standard policy insures the home itself and the things you keep in it.

Read More
Auto Insurance AUTO

Auto insurance protects you against financial loss if you have an accident.

Read More
Business Insurance BUSINESS

Discover the perfect insurance options to meet your specific and unique needs.

Read More
Life Insurance LIFE

Browse a variety of insurance options in order to find the right one for you.

Read More
Flood Insurance FLOOD

Learn about flood coverage options that fit your specific needs.

Read More
Recreational Insurance RECREATIONAL

Finding insurance doesn't have to be difficult. We do the work for you.

Read More
Home > Blog > Splurged on an Expensive Gift? Don’t Forget to Insure It
THURSDAY, JANUARY 4, 2018

Splurged on an Expensive Gift? Don’t Forget to Insure It

Splurged on an Expensive Gift? Don’t Forget to Insure It

Buying an Expensive GIft? Don't Forget to Insure It

Insurance might be the least exciting thing about surprising your loved one with a valuable gift this holiday — but don’t let it fall off your priority list.

“Don’t sacrifice preparedness for the surprise,” says Lisa Lindsay, executive director at the Private Risk Management Association, an insurance industry group that focuses on high net worth customers.

You can insure some gifts by making a phone call to your agent or a specialty insurance company. Others, such as cars or vacations, require your loved one to buy a policy in his or her own name.

Whether it’ll hang on a wall or sit in a garage, here’s how to cover your big gift.

Existing insurance may cover the gift

If you’re giving a pricey gift to someone who lives with you, the simplest way to insure it may be by expanding your homeowners or renters coverage. Standard policies pay out if belongings in your home are damaged or stolen, but coverage for valuables — such as furs, art and jewelry — is typically limited to $1,000 to $5,000. That’s after any deductible, which is the amount you pay before insurance pays a claim.

You can expand your current policy with a “scheduled” rider, floater or endorsement. Scheduling items onto your policy insures them based on cost or current value. For this reason, you’ll likely need a bill of sale or certified appraisal to cover the gift, says Steve Shiring, a vice president at Travelers Insurance.

But Shiring recommends talking to your insurer before you start shopping. An agent can help you choose between coverage options — for example, a scheduled rider versus standalone jewelry insurance for an engagement ring.

Special coverage for items that gain value

For gifts such as contemporary art or heirlooms that may appreciate in value, a rider that pays the increased value if the gift is damaged or stolen is a good investment.

To keep such a policy or rider in force, you might need an appraisal every one to three  years. An insurance agent can help you find an appraiser, Shiring says.

When a standalone policy is better

Some insurers specialize in certain policies, covering only boats, electronics, or jewelry, for example. These companies may offer more policy options than large insurers — such as coverage for losing the gift — but you might miss the convenience and savings of bundling with one insurer.

There are several reasons you may want a standalone policy for a gift, rather than using home insurance:

  • It’s for someone who doesn’t live with you, and you can’t add it to your home insurance
  • You or the recipient don’t have homeowners or renters insurance
  • It might be used for work, which would exclude it from many home policies
  • A different type of policy is required for the gift, such as car or travel insurance

Vehicles are a special case

If your gift involves four wheels and a big red bow, the person driving it will need his or her own insurance — and you’ll need coverage to get it off the lot.

If you share an auto insurance policy with the gift recipient, it’s relatively simple: Add the car to your shared policy and transfer the title after the surprise.

But if you bought a vehicle for someone who doesn’t live with you, he or she will have to insure it independently. In this situation, consider surprising your loved one at the dealership so the car is properly titled and insured from the start, Lindsay says.

Insurance might be the least exciting thing about surprising your loved one with a valuable gift this holiday — but don’t let it fall off your priority list.

“Don’t sacrifice preparedness for the surprise,” says Lisa Lindsay, executive director at the Private Risk Management Association, an insurance industry group that focuses on high net worth customers.

You can insure some gifts by making a phone call to your agent or a specialty insurance company. Others, such as cars or vacations, require your loved one to buy a policy in his or her own name.

Whether it’ll hang on a wall or sit in a garage, here’s how to cover your big gift.

Existing insurance may cover the gift

If you’re giving a pricey gift to someone who lives with you, the simplest way to insure it may be by expanding your homeowners or renters coverage. Standard policies pay out if belongings in your home are damaged or stolen, but coverage for valuables — such as furs, art and jewelry — is typically limited to $1,000 to $5,000. That’s after any deductible, which is the amount you pay before insurance pays a claim.

You can expand your current policy with a “scheduled” rider, floater or endorsement. Scheduling items onto your policy insures them based on cost or current value. For this reason, you’ll likely need a bill of sale or certified appraisal to cover the gift, says Steve Shiring, a vice president at Travelers Insurance.

But Shiring recommends talking to your insurer before you start shopping. An agent can help you choose between coverage options — for example, a scheduled rider versus standalone jewelry insurance for an engagement ring.

Special coverage for items that gain value

For gifts such as contemporary art or heirlooms that may appreciate in value, a rider that pays the increased value if the gift is damaged or stolen is a good investment.

To keep such a policy or rider in force, you might need an appraisal every one to three  years. An insurance agent can help you find an appraiser, Shiring says.

When a standalone policy is better

Some insurers specialize in certain policies, covering only boats, electronics, or jewelry, for example. These companies may offer more policy options than large insurers — such as coverage for losing the gift — but you might miss the convenience and savings of bundling with one insurer.

There are several reasons you may want a standalone policy for a gift, rather than using home insurance:

  • It’s for someone who doesn’t live with you, and you can’t add it to your home insurance
  • You or the recipient don’t have homeowners or renters insurance
  • It might be used for work, which would exclude it from many home policies
  • A different type of policy is required for the gift, such as car or travel insurance

Vehicles are a special case

If your gift involves four wheels and a big red bow, the person driving it will need his or her own insurance — and you’ll need coverage to get it off the lot.

If you share an auto insurance policy with the gift recipient, it’s relatively simple: Add the car to your shared policy and transfer the title after the surprise.

But if you bought a vehicle for someone who doesn’t live with you, he or she will have to insure it independently. In this situation, consider surprising your loved one at the dealership so the car is properly titled and insured from the start, Lindsay says.

 

Posted 2:31 PM

Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2018
  • 2017
  • 2016
  • 2015

  • insurance(3)
  • flood(2)
  • room(1)
  • basics(1)
  • readiness(1)
  • holiday(1)
  • hurricane(1)
  • understand(1)
  • worst(1)
  • best(1)
  • storm(1)
  • digital; insurance; company insurance; buisness insurance(1)
  • insurance; gaps(1)
  • pets(1)
  • makeover(1)
  • rain(1)
  • cyber; safety; insurance(1)
  • coverages(1)

View Mobile Version
Facebook
Twitter
LinkedIn
Instagram
Carriers
Carriers
Carriers
Carriers
Carriers
Carriers
Carriers
IZ Pens 

Resources

Home About Us Get a Quote Customer Service Refer A Friend Contact Us

Contact Us

  • Mailing Address
  • 11275 US Hwy 98 W, Suite 7
  • Miramar Beach, FL 32550
  • O: 850.424.6979
  • F: 850.502.4056
  • View Our Other Locations
© Copyright. All rights reserved.
Powered by Insurance Website Builder