Is Your Holiday Cheer Securely Wrapped?

Nothing brings more comfort and joy during the holiday season than giving and receiving special gifts from those you love. Whether it’s a stunning piece of jewelry, a luxury watch, a rare collectible, or the latest high-tech gadget, these gifts carry significant sentiment and thoughtfulness—not to mention cherished memories for years to come.

However, before you wrap up that special gift, there are a few important steps to take to ensure your investment is adequately protected. 

Step 1: Make sure your gift is properly wrapped (i.e., insured)

Insurance is a topic that often gets overlooked during the hustle and bustle of the holiday season and in the thrill of gift-giving. However, it’s critical to ensure adequate coverage for high-value gifts not only given during the holidays but also for gifts given on birthdays, anniversaries, graduations, and other special occasions. High-value gifts that may need additional insurance coverage often include: 

• Precious fine jewelry: Diamonds, gold, and other precious stones and metals
• Unique art and antiques: Paintings, sculptures, and historical artifacts
• Luxury watches and clocks: Timepieces from renowned brands tha often appreciate in value
• Rare collectibles: Coins, stamps, cars, and vintage toys that have a dedicated market
• High-end electronics: Premium gadgets that may have a high resale value

While standard homeowners and renters policies can protect traditional gifts against loss, theft, or damage, more expensive, high-value gifts could exceed the amount your policy will cover for personal property. Imagine gifting a beautiful diamond necklace to your partner, only for it to get lost or stolen shortly after. The emotional impact of losing such a meaningful gift can be devastating, not to mention the financial hit.

In addition, personal automobile insurance typically only covers standard vehicles
driven on public roads. It doesn’t normally cover special-use, recreational, or rare and collectible vehicles.

That’s why it’s important to review the value of your gift.
 

Step 2: Get it appraised

An appraisal is a professional assessment of your gift’s value, typically conducted by a certified appraiser. This process is crucial for high-value gifts for several reasons:

1. Establishes value: An appraisal provides a documented value that can be used for insurance purposes, resale, or estate planning.

2. Verifies authenticity: Appraisers can verify the authenticity of items, especially in the case of jewelry, collectibles, and fine art.

3. Provides market insights: Appraisers often have insights into market trends, which can help in understanding the potential appreciation or depreciation of the gift.

Step 3: Keep it protected

In addition to adequately insuring and appraising the gift, there are other ongoing recommendations you should follow to protect the investment of this gift, including: 

• Keep gift documentation in a safe place: Maintain a detailed record of the gift, including photographs, appraisals, and receipts in a secure location like a safety deposit box or safe.
  
  
• Invest in quality storage: Store the high-value item in a secure location, such as a safe or a locked cabinet. Ensure that the storage area is dry, cool, and free from humidity and other elements to prevent damage.
  
  
• Use protective cases: For items like jewelry, watches, or collectibles, consider using protective cases or display boxes. These can help shield them from dust, scratches, and accidental damage.
  
  
• Regular maintenance: Schedule regular maintenance for items that require it,
  such as luxury watches or fine art. This can help preserve their condition and value over time.
  
  
• Refrain from touching delicate surfaces. Use gloves if necessary to prevent
  oils and dirt from transferring to items made of specialty glass, high-tech screens, and fine art.
  
  
• Secure your home: Enhance the security of your home with alarm systems, surveillance cameras, and secure locks. This can deter theft and provide
  peace of mind.
  
  
• Review insurance and update regularly: Periodically review your protection measures and insurance coverage to ensure they remain adequate, as the value of your gift may change over time.

Step 4: Engage with an experienced
high-value risk advisor

It’s recommended that you consult with a risk and insurance advisor whenever you give or receive high-value gifts. Insurance providers and underwriters may require specific documentation and appraisals to insure certain high-value items under property policies. Your risk advisor can discuss your high-value gifts with you to determine the best coverage options and guide you through the process of finding the right policy that fits your lifestyle.

So go ahead, wrap that special gift, and get ready to create a memorable moment that your loved one will treasure for years to come!