While many consumers feel that their homeowners policies will cover them against disasters, others aren’t sure.
At this busy time of year, while we plan for parties, buy presents, don our ugly Christmas sweaters, and prepare to serve a tasty feast, becoming an insurance news statistic is typically not one of the issues at the front of most minds.
That said, many Christmas gifts are often quite pricy, and it could be worth deciding if additional coverage is necessary.
The more the area under the Christmas tree begins to fill up, the greater the chances that it could result in some form of insurance news disaster; regardless of whether or not we want to think about those unwanted possibilities. Depending on the number of gifts and what they contain, theft, fire, or even a Christmas tree falling and crushing some of the neatly-wrapped items could mean costly unexpected losses. This makes it a good time for a review of the homeowners insurance policy to ensure that if the worst does happen, at least it is paid for.
Many homeowners policies have caps for this type of event, so to avoid bad insurance news, added protection may be needed.
When it comes to pricy gifts that find their way under a Christmas tree, the standard homeowners insurance policy will come with an upper coverage limit. Therefore, if there are many gifts to be given, or if there happens to be a big ticket item or two, then it may be worth the while of the policyholder to advise the insurer so that a short term additional coverage can be added against certain potential perils such as fire, theft, and other kinds of disaster.
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According to Scott Houdashell, an agent from Farmers Insurance, “There are high valued items that you want to check with your agent.” He pointed out that people should always take a second look at their insurance coverage if they have made an expensive purchase such as a Christmas gift. He explained that “jewelry, guns, furs, even computers are only covered up to a certain limit.”
He underscored the fact that this insurance news is different for everyone, depending on the homeowners policy that they have and the value of the gifts that they have purchased. He stated that the average coverage may provide jewelry coverage of up to $2,500 or $3,000. For some, that may be more than enough, but if the jewelry gift was expensive enough – such as an engagement ring – it may not provide nearly the necessary protection. He also recommended keeping receipts in order to be properly prepared for a potential claim.