These gifts will have insurance implications.
When you give a gift to a loved one, the impact the present has on their insurance is probably the last thing on your mind. However, it’s important to understand that many gifts will have insurance implications for the recipients. Here are some of the ways that popular gifts will affect the recipient’s insurance coverage.
If you are gifting a loved one a piece of fine jewelry, then this probably cost you a decent amount of money. Because the jewelry is so valuable, it probably exceeds the personal property coverage limits on your loved ones’ home insurance policy. To ensure that their new bauble is covered, the receiver will probably need to secure a policy endorsement to secure additional insurance for their new jewelry.
- Fine Art, Antiques, Designer Fashion
While your loved ones may be excited to receive a luxury gift, such as fine art, antiques, or designer goods, it’s important to understand that these high-value items will likely not be covered by their homeowners insurance policy. To protect the full value of such extravagant gifts, your loved one may have to secure additional personal property coverage with a home policy endorsement or a separate policy for the item.
While homeowners insurance policies offer coverage for electronics, this coverage is capped at a certain dollar limit. This is why it’s important to have your loved ones check their insurance limits before gifting them an expensive electronic gift. If their policy does not offer adequate coverage, then they may need to secure additional coverage via a policy endorsement, specialty insurance policies, or product warranties.
This is how common types of gifts can affect the recipient’s insurance coverage. Do you have additional questions about your insurance? If so, then contact the experts at Gant Insurance Agency in McKinney, Texas. Our dedicated team is eager to assist you today.