Gifts that can have insurance implications.
When you are giving a gift, the last thing you are thinking about is how the present may affect the recipient’s insurance. However, certain high-value gifts may require the recipient to adjust their various insurance policies. Here are some of the gifts that can have insurance implications.
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 probably exceeds 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 secure 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 one wants to hold onto their old car, then the cost of insuring two vehicles can also be quite high as well.
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.
These are some of the common gifts that can have insurance implications for the recipient. Do you have additional questions about you or a loved one’s personal insurance? If so, then contact the experts at 01 Insurance in Astoria, New York. We are ready to assist you with all your coverage needs today.