Holiday Gifts or Liabilities?

Christmas finally came! You woke up early, ran to the tree, and saw what Santa left for you! You were pretty good this year and it definitely showed. Did the kids get a new trampoline? Did Santa somehow fit a new golf cart in his sleigh? Did Mom get that necklace she had been hinting about for a while? Seems like a good day all around! But are these really gifts or just liabilities? It’s possible that Santa just left a big and expensive uncovered liability on your hands.

Property insurance or renter’s insurance definitely covers personal property, but did you know that there are limitations to that coverage when it comes to gifts? Every insurance provider offers different kinds of coverage, but you may find that expensive gift items, such as jewelry and electronics, may only be covered up to a certain value – that value not being the total value of the item.

For example, let’s take a look at the new golf cart you got from Santa. Then let’s say it gets stolen or damaged a couple of weeks later. There’s a possibility that your policy will only cover $1500 of what is likely a $4000-$5000 item.

Now that the wrapping paper has been thrown away and the leftovers from the family get-together are in the refrigerator, it’s time to check with your insurance to make sure your new belongings are covered. You may want to expand your coverage or take out a separate insurance policy altogether for certain items.

If you received any of the following items for Christmas, it may be time to give your insurance agent a call and check your coverage:

• ATV
• Golf Cart
• Trampoline
• Drone
• Expensive Jewelry
• Art Work
• Expensive Technology
• Gun