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 basic 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. But say the limit of coverage on specialty belongings on your policy is $1000, and the ring is valued at $3000. In this case, you’d want to “schedule” the ring to your policy and give it a custom limit. That way, your home policy will cover the actual value of your ring, if you happen to lose or damage it (and we promise we won’t tell your fiancé).

Tip: Get your pricier stuff appraised by someone who specializes in that area. When it comes to engagement rings, some insurance companies require an appraisal if the value is over $5000.

How much coverage do you need for expensive items?

Since items that are added to your policy have custom limits, you can actually set this to whatever you need it to be. This can depend on how much the item is or how much you’re willing to pay on top of your premium each month. Going back to our engagement ring example, you can base the limit of coverage on the $3000 value of the ring. If you want all of it covered, you’d set the limit on your policy to $3000. Getting an appraisal by a certified gemologist would help you make sure you understand the true value of the ring, that way you or your fiancé don’t under insure it. If you needed to make a claim, you would receive a replacement cost based on the appraisal. There are also a few bonuses with scheduling these pricier items… for one thing, there’s no depreciation and there’s no deductible on it (like there is with other belongings).

Alternatively, there are specific insurance companies that specialize in jewellery coverage that would be 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.