Avoid Bad Holiday Surprises: Understanding the Insurance Cost of Christmas Gifts

We are living in the magic of the Christmas season. With three boys under the age of ten we relish these days of getting the perfect gift that will cause them to go speechless (if that’s possible). Don’t tell them, but this year we’re hoping to get them a trampoline, a childhood favorite of our own, and hopefully, the key to taking their noise and chaos outside.

But being in the insurance industry, we know that some home insurance companies don’t like their customers to have trampolines. We did our due diligence to ask first, and were met with a very Grinchy response that our policy will be cancelled if we have a trampoline on our property.  So, we’re left at a crossroads of not getting the most coveted Christmas gift or finding other insurance coverage that will probably cost us much more. What would you do?

When budgeting for Christmas, we usually comb over the Black Friday deals and spend days or weeks agonizing over getting the best price or value for a product, but we don’t really consider the additional cost that insurance could bring. And while most gifts are small and don’t warrant a change to your coverage, gifts like jet skis, jewelry, or even trampolines could mean significant changes in costs or even additional coverages.

In general, the contents in your home are covered under your home insurance policy, but depending on the item or value, you may need additional coverage added to your policy or a separate policy all together.

Christmas Gifts that will probably require additional Insurance:

• Jewelry- Most polices you can add this on, but only up to a certain limit. This maximum coverage is often less than $2,000 total for jewelry, but more can be added on. If you go above this $2,000 you made need an additional Jewelry policy.  
• Boats/Jet Skis- You will always need a separate policy for boat or jet skis. Before you put them in the water remember to insure them not just for physical damage but also injury and liability. Only the people listed on the policy can operate them so make sure you add all potential drivers when you get insurance.
• Golf Carts-Depending on the type of home insurance you have and the type of golf cart you have, you may be able to add it to your home policy or you may have to purchase a separate golf cart policy. There are three main types of golf carts
  • 1. Cart is only used on the property, usually covered on the home policy.
  •  2.  Cart is not street legal, but neighborhood allows it, may need an add-on coverage for that depending on the cart’s value.
  • 3. Street legal carts are treated essentially as automobiles for insurance purposes.
• Trampolines- Some companies can add coverage in exchange for premium while others exclude it or will cancel the policy all together
• ATV’s toys- Like golf cart options, this coverage is usually very limited under the home insurance. It would always be best to purchase its own separate policy to ensure proper coverage.
• Cars-Some policies include coverage for newly purchased vehicles but it’s always best to have them specifically listed on the policy, along with any new drivers
• Contents in General- (ex:  new furniture) Additional belongings can usually be added on your existing home policy up to a certain limit. This limit is different for each company but is often 50% of the dwelling amount of the home.  Holidays are a good time to review your contents coverage, you may find there is too much and could add savings to your holiday cheer!

In general, most gifts won’t need additional insurance. But just in case you plan on making a big purchase, be sure to know if it will need extra insurance. You don’t want the gift to end up being a burden to the receiver. As far as the trampoline is concerned, our agency is lucky to have a bunch of different options for home insurance. We were able to find a company that would take our home and a trampoline, now it’s the question of if Santa can fit it in his sleigh this year. If you’re wondering if a potential Christmas gift could increase your insurance cost, give us a call today at 850-244-1574 or visit our website at https://norton-insurance.com/.

Have a Merry Christmas!