Should You Insure Those Special Holiday Gifts?

Some of your new possessions may warrant additional coverage.

California Casualty Management

Did you receive a special piece of jewelry or electronics item this past holiday season? If so, the value of that gift may exceed the specified limits on your homeowner's insurance policy.

A gift you received this past holiday season may mean you need to check on your insurance coverage.

If you now own an additional piece of jewelry or a fancy electronics device, contact your insurance representative to see if you have enough coverage in your homeowner's insurance policy. It is possible that the item will exceed specified limits on your homeowner's policy.

Also, ask your representative if your policy is for replacement cost or actual cash value coverage. Replacement cost will replace lost or stolen items up to policy limits, without taking a deduction for depreciation. Actual cash value coverage pays the cost of the lost item, minus depreciation.

Jewelry, electronics, or art may need to be covered under a “rider” or “floater” policy, which will provide additional coverage for those items if they exceed limits of your current policy.

If you are considering obtaining a policy to protect your jewelry, it is advisable to get an appraisal first. Your premium will be based on that amount, and if something should happen to the item, you would be covered up to that dollar amount.

It is important to keep the appraisal document, as well as the receipt for the purchase, with your insurance policy or other vital documentation. Check with your insurance representative for authorized appraisal sources.

NEA offers two homeowner's insurance programs: NEA Homeowners Insurance®, underwritten by Horace Mann Insurance Companies, and NEA Members Auto & Home Insurance Program®, underwritten by California Casualty Management Company. Both programs offer special features for NEA members. To learn about these programs, visit www.neamb.com.