Does Your Homeowners or Renters Insurance Cover High-Value Gifts?

The holiday season is a time for giving, and many of us love to gift family with high-value items like electronics, jewelry, or artwork. But before you wrap up that expensive present, it’s important to consider how it might be covered by your insurance policy.

A standard homeowners or renters insurance policy typically provides coverage for personal property, including gifts, but there are limits. For valuable items such as jewelry, fine art, or high-end electronics, these items may exceed the coverage limit for personal property, which could leave you underinsured in the event of theft, loss, or damage.

Jewelry and Fine Art

Jewelry and fine art are two common categories where additional coverage may be necessary. Homeowners policies often have sub-limits for jewelry (often around $1,500 to $2,000) and may not fully cover the cost of an engagement ring, an expensive necklace, or a valuable painting. If your gift exceeds these limits, it’s a good idea to add a scheduled personal property endorsement to your policy. This endorsement provides specific coverage for high-value items, ensuring they are fully protected.

Electronics and Other Expensive Gifts

Electronics, including the latest smartphones, laptops, and gaming systems, are often covered under a standard policy, but they too may have limits that fall short of the item’s full value. If you’re gifting something like a high-end laptop or a home theater system, you might want to review your policy or consider adding to it for better protection.

How to Ensure Your Gifts Are Fully Covered

To avoid any surprises, review your policy and contact your insurance provider to discuss high-value gifts before the holiday season. If your items are of significant value, ask about adding an endorsement to your policy to ensure full coverage. For an extra layer of protection, consider insuring particularly expensive items separately with specialized personal property insurance.

While the holidays are a time for celebration, ensuring your valuable gifts are protected will give you peace of mind—knowing that your thoughtful presents are fully covered if something unexpected happens.

Happy holidays and happy gifting!

Products offered by Midwest Heritage Insurance Services are not insured by FDIC or any other Federal Government Agency, are not a deposit or obligation of, or guaranteed by Midwest Heritage, may involve investment risks, including possible loss of principal amount invested, and may lose value.