Did someone spoil you over the holidays with a vintage watch or a brand-new bike? With the holidays winding down, you might be too busy enjoying your new gifts too much to think about insurance. But if they’re on the pricier side, getting special home insurance coverage for these expensive items is a smart move. 

Why do expensive gifts need insurance?

Most home insurance policies have limits on how much they cover for valuables, which means your new gift might not be fully protected. 

While home insurance covers personal belongings, there’s usually a cap for “specialty belongings” like jewellery, artwork, or silverware. If your gift is worth more than this limit, you can “schedule” it. Scheduling adds extra coverage to your policy and makes sure your item is fully protected. 

Let’s take a look at this example: 

Did you know that the holidays are the most popular time of year to get engaged? If that’s you, congrats! Engagement rings are one of the most valuable gifts you can receive and usually fall under the “specialty belongings” category in your home insurance. 

Let’s say your policy covers specialty items up to $3,000, but your ring is worth $5,000. To make sure it’s fully protected, you’d need to “schedule” it. Scheduling means adding the ring to your policy with a custom coverage limit. This way, it’s covered for its full value if it’s lost or stolen. 

Do some gifts need extra coverage?

High value gifts sometimes need extra insurance to keep them fully protected. Let’s look at the type of gifts and coverage you might want to consider. 

Third-party liability coverage: More protection, more peace of mind 

Fun gifts can come with a bit of a risk. For example, an e-bike or a drone could accidentally cause harm to someone else or damage their property. Thankfully, most home insurance policies already include liability coverage.  

What’s important? Check how much coverage you have. If your policy has a low limit, you might have to pay out of pocket if someone sues you. Aim for at least $1 million in liability coverage to help with legal costs and potential settlements. 

Extra protection for luxury items 

Some gifts are extra special – and expensive! These might need additional coverage to protect them from theft, loss, or damage. 

Consider scheduling these items: 

• Jewellery, like engagement rings or diamond bracelets 
• Luxury or vintage watches
• Fine arts, collectibles, or fancy wine 
  
  

Did you know? Contrary to what you might think, high-priced electronics such as personal laptops, cameras, and smartphones are generally covered under your regular personal belongings coverage – but that’s only if they’re damaged or lost due to a covered event (like theft or fire). They won’t be covered if something happens due to your negligence – like if you drop your laptop or spill coffee on it, or it’s stolen because you left it unattended.  

How much coverage do you need for expensive items? 

Since scheduled items have custom limits, you can actually set the coverage amount to whatever you need it to be. This will depend on how much the item cost – and the max amount your insurer has set for that item. 

Let’s go back to the engagement ring example. If it’s worth $5,000, you’d want to schedule it for that amount, so it’s fully covered. But if scheduling your ring makes your premium too high, you can stick with your policy’s set limit for personal belongings. Just keep in mind that if it’s lost or stolen, you won’t get the full value back. 

Getting your ring appraised by a certified gemologist is a good idea. It helps you know the real value, so you don’t end up underinsured. Plus, some insurers don’t apply deductibles to scheduled items like they do for your regular stuff. Always check with your provider to confirm!