Unwrapping Risk: Insuring Gifts

You have been patiently waiting for, or have been suprised by, something wonderful, exciting, perfect...expensive!

Use these tips and safety tricks when determining if you should insure your possessions.

1. Start by rereading your current property policy.

Work with your insurance consultant to evaluate your current policies. You may already have the necessary coverage, or can have your valuables insured with simple adjustments. Be sure to ask how much your policy will cover in the case of theft.

**Be aware that all property policies have specific limits for jewelry, furs, guns, silver, boats and money/coins. Most people believe that their policy will protect all personal belongings regardless, but it is best to review your policy for these special inner limits. In some cases, the policy is limited to theft only, and does not include mysterious disappearance, no matter what the value of each item.

2. List the items you would like insured.

When talking with your insurance consultant, they will be able to best determine your needs if they understand what items, and to what degree, you want them insured.

Consultants can advise on additions like floaters to your homeowners policy or broad blanket coverage depending on your desires.

Personal Articles Floaters Explained

3. Have a conversation with your insurance consultant.

As someone you trust and you can confide in, your consultant should be able to guide you in assessing which valuables are worth the purchase of additional insurance coverage. Their role is to find your the correct coverage and assist in:

• Listing your valuables
• Knowing what your policy requires you to do to be fully covered
• Determining a deductible, if any
• Keeping proof of purchase and copies of items’ value in a safe location
• Completing other necessary actions that ensure entire security over your items

4. Keep Your Valuables Safe!!!

In addition to the belongings under your roof, the holidays can mean extended absences = higher risk of break-ins. Traveling can also expose individuals to property theft and damage to vehicles.

Take the extra precautions to reduce your exposure to risk:

• Be conscious of items in your car. Be weary of leaving valuables in your car, for all the world to see. Look items in your trunk, hide them under seats/blankets or take them with you.
• Watch your boxes! Consumers are warned to be careful when placing boxes out for the trash. The images and writing on packaging can draw the attention of unwanted visitors. Consider putting boxes, especially large ones, in trash bags.
• Don't put out an advertisement.
  Mike's Facebook Post: "Wife got my a $2,000 camera for Christmas!! LOVE HER! Off to visit my parents for a holiday dinner. Happy Holidays to all!"
  When something is put online the term "viral" is used for a reason. Be careful who you are telling your details!
• Store your items in a secure place away from your home. Consider using a self-storage facility and/or bank safety deposit box to keep your items safe. Locking your valuables away from your home will give you peace of mind that you are the only person who can access them.
• Record each item and its price value. In the event that you lose anything, or your house is damaged unexpectedly, you’ll want to have this documented. This way you can review the items and values with your insurance company in the case of a claim. Note that mysterious disappearance of items is not automatic. The types of losses covered are different in each policy, and should be reviewed carefully or discussed with your agent. Consider using a video camera/video as your documentation medium.
• Consider a home security system. Activating a security system for your home gives you an extra layer of protection and immediate attention to incidents. They can also reduce your home insurance policies in some cases.
• Search for local safety programs or initiatives aimed to secure your personal property. Check with your community or police station if there are special programs they employ for the holiday season. For example - the police department in Murfreesboro, Tennessee, created a free online inventory system compatible with the National Crime Information Center that allows local residents to record serial numbers and images of jewelry, electronics and other valuables. If they were to lose any items, the law enforcement investigators already have easy access to the information.

FURTHER READING:

The Best Way to Insure Your Valuables - The New York Times; April 2010