expensive holiday giftIf you plan to give or receive expensive gifts this holiday season, such as jewelry, electronics or even a trip, be sure to consider the type of insurance you’ll need to cover the items. Just because a valuable is located inside your home or vehicle doesn’t mean it will be covered under your standard homeowner’s, renter’s or auto insurance policy.

The experts at the Equifax Finance Blog highlight the different types of insurance you may need for holiday gifts in its recent article, “

Must-Have Insurance Policies for Expensive Holiday Gifts.”

If a gift is stolen out of your vehicle, or your vehicle is stolen with the gift inside, it would be covered under your homeowner’s or renter’s insurance policy as opposed to your auto insurance. However, you must have off-premises theft coverage to be insured in this situation, so be sure to talk to your insurance provider to determine if you’re covered.

If a gift is stolen or destroyed while it’s in your home, the type of insurance coverage you need is determine by the type of item it is.

Valuables such as expensive furniture, a flat screen TV or stereo equipment is typically covered under your standard homeowner’s or renter’s insurance policy against theft, vandalism, fire or smoke damage. However, be sure the value of your policy doesn’t need to be increased after receiving new items. Also, if you want your items to be covered from damage such as dropping the television, you may need to add additional coverage.

Other types of electronic equipment, such as a computer or tablet, are not covered under one standard type of coverage. Most insurance companies handle them differently, so it’s up to you to discuss the items with your insurance provider to determine how they cover the items.

Finally, if you’ve purchased or received valuable items, such as jewelry, your homeowner’s or renter’s insurance will typically cover them. It’s important to be aware that there is usually a limit to the amount covered for these items, so you may need to add additional coverage. For instance, a $10,000 engagement ring will likely need to be appraised and added to your insurance through a floater policy.

If you plan to give or receive expensive gifts this holiday season, make sure to talk with your insurance provider to be sure your homeowner’s or renter’s insurance adequately covers them. For more information, read the full article on the Equifax Finance Blog.

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