Gift givers are going all out this holiday season. The National Retail Federation projects holiday sales to be at $457 billion. If you're contributing to the total by giving an expensive gift to a loved one, don't forget to insure the item so that the recipient can enjoy it for years to come.
Certain big-ticket items such as jewelry, artwork and electronics equipment are often covered to an extent under standard homeowners or renters insurance, but you should check your policy to be sure. Oftentimes, however, insurance policies will limit the dollar amount covered, sometimes up to just $2,000.
Allison Dean Love, director of the South Carolina Insurance News Service, suggests purchasing additional coverage through a floater. Floaters are insurance policies that cover moveable items such as jewelry or stereo equipment.
To make sure you're getting the right coverage, have the item appraised, as your premium will be based on this value. Keep copies of all receipts and forward them to your insurance agent as well. Knowing where your receipts are will speed up the claims process in case the item is stolen or damaged.
For grown-up toys such as power boats, all-terrain vehicles or motorcycles, you should check with your insurance company for rates. They can vary wildly depending on the model and make of the vehicle, not to mention the user's insurance profile and history. ATVs may be covered under homeowners insurance policies, but find out if they include coverage if they are driven off the individual's property.
According to Nationwide insurance, some companies will offer insurance discounts if the user completes a safety course. Consider including a gift certificate for such a course along with the vehicle itself.
Copyright (c) 2006 MarketWatch, Inc.
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