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Reviewed by William Cooper
Important Disclosure: The content provided does not consider your particular circumstances and does not constitute personal advice, please check with your policy or insurer for accurate terms and conditions.
Christmas is a time for festive cheer and exchanging gifts with loved ones. However, it’s also a popular time for thieves to strike and take advantage of all those high-value presents under your Christmas tree.
With homes full of expensive Christmas presents, you may be wondering, does my high value home insurance cover Christmas gifts? In this article, we’ll answer common questions that people ask about Christmas present insurance, and explain how high value home insurance can protect your valuables and keep them safe this holiday season.
Are Christmas presents covered under high value home insurance?
In general, Christmas presents are covered under high value home insurance. However, the coverage may depend on several important factors. When you initially took out your high value home insurance, you would have agreed on a level of coverage with the insurer for general contents and valuables (jewellery, watches and art).
If you took out a high-value home insurance policy, the newly acquired presents may push the total value of your general contents or valuables over the agreed limit. But don’t worry just yet.
Some high value home insurers automatically increase your policy’s value over Christmas at no additional cost under what’s called ‘new acquisition cover’ or cover for gifts’.
However, not all insurers offer this, so it’s important to check your policy with your broker. If your insurer does automatically increase your coverage over the festive period, that could only be temporary. You may need to update your coverage limit(s) permanently to cover any new valuable items acquired over Christmas to ensure that you’re properly covered for the duration of the policy.
As already mentioned, most high value home insurance policies will cover new possessions, such as valuable Christmas gifts, under an existing policy but the amount by which they will cover varies from policy to policy, and any newly acquired items should then be declared at the earliest opportunity. This may impact the premium but you’ll have the peace of mind knowing all those beautiful new items are protected against theft, loss, damage and a host of other perils.
Does the location of my gifts impact the policy?
Usually, no. Many high value home insurance policies automatically offers worldwide cover, including in the home, for accidental loss, damage, theft, attempted theft, malicious damage and a host of other perils.
Should I update my policy to cover the additional gifts?
Under a high value home insurance policy, you don’t have to immediately update your policy to cover additional gifts. Most insurance providers will allow you a grace period in which your new possessions can be covered – this is known as new acquisition cover – stating that you will need to update your policy in the future, either in a certain number of days or when the policy renews.
It’s critical that you check your policy details and check for wording such as ‘new possessions’ or ‘new acquisitions’ as this will help clarify when you need to update your policy.
A high value home insurance policy, going into the Christmas period, should give you peace of mind, as the new gifts in your home are most likely covered insured. Should something unexpected happen, you shouldn’t have to worry. To obtain full assurance of what is covered, we recommend consulting your policy wording and doing so with your broker.
Is it possible to vary my policy during the holidays?
Some insurers will allow you to increase your policy during the policy period (in insurance terms, we call this a mid-term adjustment), including Christmas and other recognised religious festivals. Some will even let you increase coverage over family celebrations such as weddings or birthdays. This increased coverage can ensure that your valuable belongings are adequately covered.
As discussed earlier in the article, high value home insurers often offer their policyholders additional coverage when it comes to new gifts in the home. Check your policy to find out if this extra cover is automatically included and how much extra cover it offers. If it’s not included in your policy, you may want to consider discussing with your broker an extended coverage policy if you know these special occasions are going to bring more value into your home.
What if the gifts are damaged during an accident? What if my guests cause damage?
Homes often get a lot busier during the Christmas period, with family and friends coming to visit. A busy household can mean that accidents happen, such as a breakage or spillage. If a Christmas gift is damaged, don’t panic, as you might be covered by your high value home insurance. Many policies cover accidental damage, including damage that’s caused by your guests, depending on the circumstances and terms of your policy.
High value home insurance products also extend cover to include your guest’s belongings. Should a guest arrive at your house and their items become damaged during your stay, then your high value home policy will extend to cover their items too! This is particularly great if you have friends staying from out of town, or overseas.
What if I’m planning to propose at Christmas?
If you’re planning on leaving something extra special under the tree, such as an engagement ring, this can be covered under the valuables newly acquired items in a high value home policy.
If you don’t qualify for high value home insurance, do not worry as there are products on the market that can cover engagement rings in isolation – you may need to consider a stand-alone insurance product. If you’re buying an engagement ring, we recommend that you consider arranging engagement ring insurance as soon as you make your purchase, as this can protect you against risks such as loss, damage, and theft. Give yourself peace of mind that your prized Christmas present can be protected ahead of popping the question by purchasing engagement ring insurance from Stanhope.
How to avoid damage to your gifts during the holiday season
During a busy time such as Christmas, all sorts of things can happen that could put your presents at risk. That’s why you need to take steps to keep your Christmas gifts safe.
Inventory of your gifts
Keeping an inventory of all the new gifts in your home is important. That way, you know what’s there should something happen. Write a list of all the gifts, their value, and the date of purchase. If possible, keep hold of the receipts, as this will help you if you need to make a claim.
Keep your home secure
Accidents are just one of the things you need to think about when it comes to protecting your Christmas gifts. You should ensure that your home is secure by doing the following:
- Keep your lights on: even if you’re not home, make it seem like you are by setting timers to come on automatically to deter potential thieves.
- Do not leave gifts on show: don’t put presents under the tree if they can be seen from a window.
- Hide packaging: don’t leave the packaging of expensive items in plain sight outside your home, as it’s advertising the items to thieves.
- Invest in a safe: a secure, insurance-rated safe will keep your expensive gifts, jewellery, electronics and valuables safe. Read our guide on buying a safe for your home and why it’s such a great investment.
Consider reviewing your policy
The risk to your home and belongings can increase over the holiday season, whether you’re going away or having guests over. You may want to consider reviewing your high value home policy to see how your insurance coverage protects against these risks. We recommend giving your insurer or broker a call for an ‘insurance MOT’, checking everything is covered as it should be.
Get the best coverage this holiday with high-value home insurance from Stanhope
An exciting part of Christmas is exchanging gifts, but the risk of them being damaged or stolen can increase during the holiday season. High-value home insurance, or stand-alone jewellery insurance, can help to protect your gifts if they are damaged or stolen. This type of policy helps you by having additional cover for any new acquisitions you may acquire at any period, depending on the value and if you declare them at the right time. Ensure you take time to read over your policy to check that new Christmas gifts are covered and the limits of your policy. If you need more coverage or need to know when to include gifts in your policy, speak to your broker about making these changes in advance of the holiday period.
It’s essential that you have the right insurance coverage for your home. We recommend regularly reviewing your policy to ensure that it’s still relevant to your needs and updating it if or when necessary. If you’re concerned about your policy, talk to your insurer about what your policy covers.
Contact the expert team at Stanhope to learn more about our high-value home insurance and get a tailored quote.
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Sources
https://www.comparethemarket.com/home-insurance/content/christmas-burglaries/
https://www.uswitch.com/home-insurance/are-christmas-presents-covered-on-home-insurance/
https://www.gocompare.com/home-insurance/guide/increasing-contents-cover-during-holidays/
https://moneytothemasses.com/quick-savings/insurance-2/does-your-home-insurance-cover-christmas