Insuring expensive gifts from the holidays

Did someone spoil you over the holidays with a vintage watch or a brand-new bike? With the holidays winding down, you might be too busy enjoying your new presents to be worrying about insuring them. However, if they’re more on the pricey side, you might want to consider getting special coverage for them.

Insurance for expensive items

While a comprehensive home insurance policy will cover you for the loss or damage to your personal belongings, your policy will usually have a coverage limit for what’s considered to be a “specialty belonging”. Specialty items can be things like collectibles, jewellery, silverware, etc. If your specialty belongings are worth more than the limit on your policy, you can add them (or “schedule” them) to your policy separately. This way, you have control over the limit and how much is covered.

Here’s an example to give you an idea of what we’re talking about:

The holidays are the most popular time of year to get engaged – seriously, look it up – which means some of you might be sporting a certain accessory on a certain finger for the new year. (Congratulations!) Engagement rings are arguably one of the most expensive gifts you can receive, so it would fall under the “specialty belongings” category of your personal belongings. So let’s say the limit of coverage on specialty belongings on your home insurance policy is $3,000, and your ring is valued at $5,000. In this case, you’d want to “schedule” the ring to your policy and give it a custom limit – in other words, add special coverage for it to make sure it’s covered up to its full value if it’s lost or stolen.

Tip: Get your pricier stuff appraised by someone who specializes in that area. When it comes to engagement rings, some insurers will need an appraisal.

How much coverage do you need for expensive items?

Since scheduled items have custom limits, you can actually set the coverage amount to whatever you need it to be. This will depend on how much the item is and the maximum acceptable value. Going back to our engagement ring example, to be sure it’s covered up to its full value you’d need to schedule it for $5,000. Now, if scheduling your ring raises your premium to an amount that’s beyond your budget, you can always keep it at your policy’s set custom belongings limit. But, taking this risk means it wouldn’t receive its full value if it’s lost or stolen.

Getting your ring appraised by a certified gemologist would help you make sure you understand the true value of the ring, so you or your fiancé don’t underinsure it. Another bonus? Some insurers don’t apply your deductible to scheduled items (like they would with your other belongings) - although you should always check with your provider to make sure.

Another option? There are also insurance companies that specialize in jewellery coverage that’s separate from your home insurance. The same goes for insuring your bike – there are companies that can offer liability, personal injury, theft and damage coverage for all you riders out there.

Protect your home and the things you love most.