If you're planning on giving or getting a costly Christmas present this holidays, for example jewelry, art, or electronics, chances are good you don't want to view it damaged, lost, or stolen.
And while that which you retain in your home is generally covered by your home insurance plan, high-value items tend to include coverage limits. They usually require endorsements, or “add-ons” that increase the coverage open to you for things like diamond engagement rings, paintings, and instruments.
Below we take a look at what insurance endorsements are for sale to expensive gifts.
Jewelry insurance endorsement
Looking to insure a diamond ring this Christmas? This is something you don't really think about before you lose it. Jewelry, in addition to watches and furs, is covered beneath your homeowner's insurance but only up to a combined amount of as much as $6,000 per claim, based on the policy's deductible. If you are giving or receiving jewelry that's valued at a lot more than $6,000, then you need to consider investing in a jewelry endorsement. The fees are typically between 1% and 2% from the worth of the product, but can be also impacted by whether you've got a home security system installed in your house and just what the level of property theft is like in your neighbourhood.
Insurance companies make use of your postal code to determine the probability of you making a claim. If your neighbourhood is prone to property theft, you might pay a higher premium when compared with neighbourhoods having a lower incidence of theft. Conversely, you can find a lower premium if you use a home security system that discourages thieves.
You can also get insurance through a jewelry insurer. This is their speciality to allow them to accurately appraise your pieces and provide you with an insurance policy which will protect you from theft or damage.
Another important thing to notice is that jewelry endorsements cover the replacement worth of the item. Since jewelry appreciates over time, it's a good idea to get it reappraised every few years to make sure that your insurance covers the present value.
Art insurance endorsement
Now art isn't just paintings. With regards to insurance, the word “art” covers a great deal, including:
- Vintage memorabilia including sports
- Vintage cars
- Musical instruments
- Books and manuscripts
- Coins and stamps
- Any collection that has value, including toys
Again, art may also be covered beneath your homeowner's insurance but there's a restriction to that particular coverage. Your policy may not cover the entire worth of the art, or worse, might not cover your items whatsoever if they don't come under your policy's definition of “art.”
Another reason to think about an art insurance endorsement is that homeowner's insurance might not cover incidents like theft, damage to the piece, breakage due to transit, and incidents that may happen if you lend out your art.
If your art isn't overly valuable based on the market but could be hard to replace (e.g. it's a family piece), consider an art rider. This can be put into your homeowner's insurance and extends the coverage limit for your art and can also insure it from theft.
Otherwise, separate art insurance works well for family heirlooms that will cost a lot of money. It can also come in handy to cover all of the incidents that aren't included in your homeowners insurance. You may expect, depending on the value of your piece, to pay premiums of 1% to 2% from the value.
Bicycle insurance endorsement
Bicycles are another high-value item that you'll want coverage for. Bicycle sales skyrocketed in Toronto during 2021. If you've spent a nice income on the nice bike, you will want to protect it from punctures because theft remains an issue. Your homeowner's insurance plan generally covers the need for the bike. A high level professional cyclist or spend a lot of time off-road, another bike policy may well be a wise decision, to ensure that you're covered for roadside assistance, too.
A quick note: this refers to insurance for that bike, not the rider. Having said that, you ought to have liability coverage under your home insurance when ever you're riding your bike.
If you choose you need more coverage than your home insurance plan enables, you can purchase cycling insurance via third-party providers. The typical premium price is about 5% of the value of the bike but that can increase if you purchase a specialized bicycle just like a mountain-, off road-, e-bike or competitive-level bike.
Electronic device insurance
Electronics can be expensive. The iPhone 12 Pro retails for $1,399. And the Samsung Galaxy Ultra 5G costs $1,524.99 – and that is down from its regular price of $1,899. That's most of a month's rent in big cities. So if you're giving electronics as a gift, you want to make sure you have the instructions, the warranty, a case and insurance because you do not want something that costs nearly a month's rent to get lost or damaged.
If your phone, computer or smartwatch is stolen or damaged, this is often included in homeowner's insurance but you might have to pay a slightly higher premium depending on the worth of your electronics. Cell phone providers offer warranties which cover the price of damage or theft. And lots of credit cards now offer mobile phone insurance when you purchase the telephone using your charge card.
Giving and receiving a gift is definitely an enjoyment but if the item is valuable, you will want an insurance policy or extending your present insurance policy with an endorsement. Read the small print to make certain that you're obtaining the coverage you need – after which enjoy your gift.