When was the last time you gifted someone a diamond necklace, a new car or a work of fine art? Whether you are in the habit of gifting luxury items or it is a one-in-a-lifetime event, you need to be certain that gift is protected. Otherwise, you may have gifted that someone special a heartache waiting to happen.
Luxury goods are often targeted by thieves. Expensive jewelry, designer watches and automobiles are attractive prizes to those unscrupulous individuals who covet their worth. Gifts like this must have adequate insurance coverage to make certain its value can be replaced even if the exact item cannot.
These items don’t have to be stolen in order to require coverage. Accidental damage is not uncommon, especially with works of art, recreational vehicles and precious jewelry that is worn on a regular basis. You must plan for an insurance policy if you plan to buy a luxury item for yourself or a loved one.
One of your options is to work with an insurance provider that specializes in luxury goods. They can provide specific policies because they are used to working with clients who regularly make these kinds of purchases.
There are different types of coverage depending on what you plan to buy. Itemized coverage allows you to buy a policy that only covers the specific item. The policy is used if that item is stolen or accidentally damaged. It will only cover up to the amount of which the item is assessed. If using itemized insurance, it is a good idea to have the gift re-assessed from time-to-time to ensure the amount of coverage is sufficient.
Another type of policy is blanket coverage. Blanket coverage is a good choice if you have a habit of buying luxury items for yourself or a loved one. Blanket coverage offers an overall limit that is roughly worth the entirety of the collection. If any item is stolen or damaged, a portion of the coverage is paid out. That portion may not match the exact worth of the item as no specific dollar amounts are assigned to the individual pieces in the covered collection.
Pair, set and match coverage pertains specifically to items that are part of a set. This is most commonly earrings, but it could apply to anything with value that is dependent upon being a part of a pair or a set. This coverage usually comes with options. If one piece of the set is damaged or stolen, the policy may provide a dollar amount to allow for a replacement item or the insurance agency may take ownership of the remaining item(s) and provide a payout that covers the entire set.
Gifting a car is a bit less complicated when it comes to insurance. Assuming the car is gifted to someone in your own family, you can simply add the car to your existing policy. Just make sure the car is added as soon as you bring it home so that you are covered from day one.
Private Management Insurance Agency is highly willing to offer whatever assistance you may need at each step of the quoting and transaction process. You can reach our customer service team on Monday through Friday from 9 am-5 pm PST— Call us at (858) 252-4111, or you can also set a schedule with us just by clicking here: