Posted on: December 4, 2024
Christmas Presents: Will Your Insurance Cover Them & How?
Santa might have insurance for his sleigh, but what about the gifts under your tree – at home or work?
It’s worth pondering. Your Christmas gifts could be at risk of theft, damage, or loss. Don’t let your guard down.
Here’s what you need to know about ensuring your holiday presents are covered.
Understanding Home and Contents Insurance
Most home and contents insurance policies typically protect your belongings against:
- Fire
- Theft, or
- Other insured events.
This generally includes gifts stored in your home, whether they’re hidden away in cupboards or sitting under the tree. Contents insurance should also be taken out if you are renting, as your landlord’s insurance won’t cover your belongings.
However, policies can vary on their coverage. For example, you might be covered for items stolen from your car or another location, or you might not. It pays to check. Ensure you read your policy details closely and we’re here to guide you as your broker or adviser.
Coverage Limits Could Leave You Short
While contents insurance is a great safety net, it is limited. Most policies cap the amount they’ll pay out per claim. So, pricey items such as artwork, jewellery, luxury electronics, or collectibles may not be fully covered.
For instance, a policy might cover up to $20,000 for total contents yet set a ceiling of $2,000 for individual items. That means if you’ve bought a gift worth more, you could be underinsured unless you have extra coverage in place.
Protecting High-Value Items
If you’re gifting or receiving expensive items this Christmas, consider opting for additional cover. Many policies allow you to opt in for specific item ‘endorsement’ or portable contents insurance, so your high-value gifts are protected wherever they go.
In particular, an endorsement lets you list a specific item, such as a wedding ring, or high-value electronics (drones, gaming consoles, etc.) for full coverage beyond your policy’s general limits. Portable contents insurance can be handy for covering items outside your home, perfect for gifts that will travel with you to the recipient.
What’s Excluded from Coverage?
While insurance can provide peace of mind, beware these common exclusions in standard policies:
- Accidental damage, such as dropping a gift, or pets getting up to mischief with the presents, and
- Misplacement.
That’s where additional accidental damage cover would come in.
As well, some policies won’t cover you for items lost or stolen while unattended in public places. It helps to know and understand these exclusions to save you from some nasty surprises.
Holiday Theft, Security Risks & Making a Claim
The holiday season often sees a jump in home burglaries, with gifts under a sparkling Christmas tree visible from the street offering a lure and possibly easy pickings. Porch piracy is on the rise – the theft of online shopping deliveries at the destination. Consider keeping your gifts hidden in secure locations such as a locked cabinet. You might even place empty (but wrapped) boxes under your Christmas tree for the lower-risk festive ‘effect’.
Should your gifts disappear, your insurance may help recover the costs.
Here’s how to make the process smoother when claiming for lost, damaged or stolen presents:
- File a police report
- Document the stolen items, sourcing receipts and photos where possible, and
- Contact us, as your broker or adviser, promptly.
From explaining policy specifics to liaising with the insurer, we’re here to take the stress off, particularly during what is already a busy season.
Stay Protected This Festive Season
Christmas is a time for celebration, not stress. Ensuring your holiday gifts are covered by insurance means you can focus on the joy of giving without worrying about the unexpected. Reach out to us to review your policy and make sure your festive season goes off without a hitch.
As the holiday cheer unfolds, let your biggest concern be finding the perfect gift—not what happens if it goes missing. As your broker or adviser, we and our team wish you a safe, joyful festive season filled with love, laughter, and well-protected presents.
