When you are shopping for your loved ones, the last thing you are thinking of is how certain gifts may affect their insurance. However, part of being a thoughtful gift-giver is anticipating the impact that your present may have on the recipient. Just so you are aware, these gifts could require insurance updates.
If you are gifting a loved one a piece of fine jewelry, then this probably cost you a decent amount of money. Because the jewelry is so valuable, it may exceed the personal property coverage limits on your loved ones’ home insurance policy. To ensure that their new bauble is covered, the receiver will probably need to secure a policy endorsement to get additional insurance for their new jewelry.
While you might love the idea of gifting a brand-new car topped with a giant red bow, it’s important to understand that receiving a new car will impact the recipient’s auto insurance coverage. Because new cars are more expensive to insure, this gift could raise your loved one’s auto insurance rates significantly. Additionally, if your loved ones want to hold onto their old car, then the cost of insuring two vehicles can also be quite high as well.
Gifting a trampoline or backyard play structure to a family with young children is a sweet gesture. However, these fun additions are considered “attractive nuisances” to insurance providers. This is because these apparatuses tend to attract people and increase their risks of getting injured. Having these items on your property will increase your personal liability risks so much that you may be forced to secure special policies designed to cover the risks associated with attractive nuisances.
If you plan to gift a loved one a new pet, it’s important to check their existing home insurance policy first. While the recipient’s personal liability insurance will cover third-party injuries and property damages caused by a pet, there are some limits to this coverage. For instance, many insurers will refuse to cover certain breeds of dogs that they consider too high-risk. If you plan on surprising a loved one with a pet that is considered high-risk, then they may have to secure special pet liability insurance.
Please be aware that these gifts could require insurance updates. Do you need to update your insurance after receiving a gift? Then contact the experts at Mike Leonard Insurance Agency. Our dedicated team is eager to find you the right coverage from one of our many carriers, including: Kemper, MetLife, Nationwide, Travelers, Safeco Insurance, Progressive, and American Strategic Insurance.