The holidays are over, and your family scored big with some high-end holiday gifts: a bronze sculpture, custom-fitted golf clubs, the latest big-screen TV and a dressy Swiss watch.
Now comes the practical question: Is everything adequately insured? There’s a good chance the answer is no. Time to review your policy.
Evaluating your insurance coverage
A standard homeowners insurance policy has limits on certain types of expensive goods—from artwork and jewelry to bespoke clothing—that are usually much lower than their actual worth. So if you’ve acquired some valuable holiday gifts, consider getting additional coverage.
A supplemental policy rider (sometimes referred to as valuable personal property insurance) can insure you beyond the usual limits so that you receive the item’s full value if you file a claim.
Ensuring adequate coverage for holiday gifts isn’t always obvious, however. For example, getting a trampoline for your backyard enjoyment may require additional homeowners insurance coverage for liability concerns as well as its value. On the other hand, adding a monitored home security system may trigger a discount from your insurance company.
Documenting your holiday gifts
Another good idea for holiday gifts you just received: Compile a visual record of them in case you file an insurance claim for theft or damage. A complete, detailed inventory of your valuables can help expedite claims. Here are simple tips for creating a home inventory.