Christmas is just around the corner and for many that includes buying and keeping gifts as the big day approaches.
But while the rest of us prepare gifts to give to loved ones, thieves are taking advantage of high value items under the Christmas tree, with burglary claims during the week surrounding Christmas, as Direct Line reports. . And burglars aren’t the only threat to your party fun – according to insurer Aviva, fire claims increase 120% on Christmas Day alone.
But are gifts protected, whether before or after receiving them? In short, Christmas gifts will only be covered if you have contents insurance or a specific insurance policy for the items.
Content insurance: are you covered?
Put simply, if you want the items in your home to be covered in the event of a burglary or fire (or any other incident), you need to purchase inventory insurance.
Contents insurance is separate from building insurance, which only covers the structure and amenities of your home, but the two types of policies can be purchased together. If you are a tenant, your landlord must have building insurance, but it is your responsibility to cover your personal effects. When purchasing a policy, you will agree on a level of coverage (eg £ 10,000), which is the maximum amount the insurer will pay in the event of a loss.
If you already have a property insurance policy, additional items in your home during the holiday season could cause your belongings to exceed the limit of coverage you previously set with your insurer. Think about the gadgets, jewelry, and other gifts you put away for Christmas (or that you yourself received as gifts).
Some insurers will automatically increase the level of coverage during the month of December specifically to cover additional items that people are storing at home. But this doesn’t apply to all policies and the increases offered will be different, so check with your insurer if they are adjusting your coverage and by how much.
In addition to a level of coverage, your insurer will also put in place a per item limit, which is the maximum amount they will pay for a single item in your policy. It is often around the £ 500 mark, but can be higher or lower.
If you (or someone in your household) have been fortunate enough to receive high value gifts, you may need to review your policy terms or consider purchasing separate insurance for these items. Check your policy’s per item limit and notify your insurer of any items that exceed that limit (this may include jewelry, game consoles, cell phones, etc.)
And if you have new gadgets and want to cover them outside the home, you may want to consider adding out-of-home coverage to your content policy or purchasing separate insurance. gadget insurance Politics. Gadget insurance will cover your items separately from your home insurance and therefore will not affect your home insurance premium if you make a claim.
Home insurance is for life, not just for Christmas
When you have distributed all of your freebies and your policy coverage level has returned to normal, it is important to determine if your normal coverage limit is sufficient. It is important to check the coverage limit you set with your insurer and regularly determine if it is adequate, especially when making a new purchase of value. Otherwise, you might consider talking to your insurer to increase your level of coverage more permanently.
Make sure you’re covered and getting the best deal on your inventory insurance.