Today is the day many of us will be giving gifts to the people that we care about. It might be chocolate, flowers, clothes, or jewelry, but whatever it is, you need to make sure that you are taking the appropriate steps to insure the valuable items that you purchase. It’s estimated that U.S. consumers will spend about $18.2 billion on gifts for their loved ones. While this amount is lower than it has been in the past, it’s still a lot of money.
Homeowners and renters policies cover personal property, but there are often limits to them. These policies cover things like fire, lightning, and theft, but what if you item is damaged or dropped down the sink? Do you have proper coverage for that kind of accident?
Unfortunately, these types of accidents are not typically covered by your insurance policy – unless you purchase an add-on to your policy, which can go by different names like rider, floater, or endorsement policy. This is often a good idea, especially if you tend to lose things. While adding a rider might slightly increase your insurance policy, it doesn’t come with a deductible. That means that if your Valentine’s Day gift just disappears out of nowhere, you won’t have to pay for expenses out-of-pocket.
If you home is destroyed in a natural disaster, would you be able to remember every possible item of value that you own? This is one reason why it is important to keep a home inventory somewhere safe outside of your home, as well as appraisals or receipts for valuables. This can be very beneficial to have when you are filing a claim.
If you don’t have a home or renters insurance to begin with, you can still have coverage for your valuables. Separate policies do exist, although it should be mentioned that renters insurance is surprisingly inexpensive. So if you are in the uninsured renters club, you should look into getting a policy to protect your assets.
You need to know that sentimental value is not insurable. Gifts that you get from your sweetheart might seem absolutely priceless to you, but not everyone shares that passion. Insurance agencies allow you to insure a personal possession for its actual or appraised value, not the sentimental value.