The season of giving (and receiving!) is such a joyous time. Not only do families typically make the most effort to get together, but it is a time to enjoy some holiday cheer with some gift exchanges and great food and drinks.
If you’re lucky enough to be the recipient of an expensive gift this holiday season, you may wonder if you need to insure that product. While your existing home or renters insurance policy already includes a certain amount of coverage for personal property, some items like jewelry and collectibles should have their own line of coverage called an endorsement or floater. Home insurance isn’t designed to cover special items, but is instead designed to provide coverage for day to day items that are easily replaced like clothes, appliances and furniture. If you have special jewelry or collectibles, consider a special policy or endorsement for these items.
Jewelry that you may want to have a floater or endorsement for can include:
- Expensive watches, rings, necklaces, bracelets, earrings
- Rare or vintage pieces
Collectibles that you should consider insuring can include:
- Comic books
- Rare toys
- Stamp collections
- Sports cards
Other things to consider when insuring your jewelry or collectibles:
Keep an up-to-date appraisal.
Collectibles and fine jewelry can increase or decrease in value dramatically. The last time the economy turned down, collectibles took a big hit because people didn’t have the money to buy them and the market was flushed with people trying to sell them to make some extra money. Like the collectible market, fine metals like Gold, Silver and Platinum fluctuate daily so if you’ve gone years without getting a jewelry appraisal, you may want to revisit that.
What does insurance pay on the items you have when it comes to a claim settlement?
If you purchase a collectibles or jewelry endorsement it would be good to understand the differences in policy coverages. For instance, by selecting something called agreed value, you can ensure you get that amount of coverage. If you insure your rare Spider Man comic book for $4,500, if something happens to it and it is stolen or destroyed, you’ll get that $4,500 not the current value should it depreciate.
Most of the companies we represent allow these items to be scheduled right on your homeowner’s insurance policy. Call an agent today to see if you should add an endorsement for your special item. Enjoy the holidays and if we can answer anything for you about your home or auto insurance during this holiday season, please give us a call.