Are your Christmas presents covered by your contents insurance?
December 8, 2021
At this time of the year, you likely have a lot of extra gifts and items ready to be delivered by Santa to your friends and family, whether it be ones Santa is giving to others on your behalf or ones Santa is giving you (if you have been good all year of course !).
But are they covered by your insurance?
Stats from the Australian Bureau of Statistics show clearly that 72% of burglaries happen at a residential address, so if you’re storing big-ticket presents like jewelry, sports equipment, or expensive tech, it will be worth reviewing your contents policy to ensure you are covered.
Depending on your insurer and policy, gifts could be included in this. However, many providers have dollar limits for specific items across the standard cover and optional extras.
Then what about after Santa has delivered presents to your household?
Here are some tips to help make sure you are covered with ease:
1. Know how much it’s worth
You can always ask “Santa”, or more likely, let’s face it, you might not feel comfortable to ask the value of your gift. So some other options are to explore Google to see what it might cost to replace or to get a formal valuation done.
2. List high-value gifts on your contents policy
Most contents insurance policies cover you for belongings up to a certain amount without needing to specify each and every possession. However, if you’ve received a particularly valuable gift or it will be hard to replace, you should list the item separately, to ensure it is covered. This could include itemising jewellery, art, sports equipment, electronics, or music gear worth more than $5,000 and art worth more than $25,000., but each policy is different…
You will need to get high-value gifts added to your contents policy as soon as possible. Until it’s listed on your policy, you might not be covered for any damage or loss for its full amount.
The good news is that it’s easy to get it added. It might increase the premium you pay for your contents insurance but you’ll be able to make the most of the gift and not wrap it up in cotton wool, worrying how you’d replace it if something were to happen.
3. Keep your photos
It’s a good idea to take plenty of photos of the gift itself…. and of you with it, to prove ownership if something were to happen. Photos aren’t essential but they’re useful if you need to make a claim in the future.
IF you are comfortable doing so, also ask the person who gave you the gift for some proof of purchase and you’ll be able to use this as proof of ownership if you need to make a claim.
Most importantly enjoy the gifting season and stay safe.
This information is general in nature and if you have any questions about your own personal policy, please reach out to your personal insurance broker and review your policy.