Holiday Gifting And Knowing Your Insurance

The holiday season is a time when people love to purchase meaningful gifts and create special moments for loved ones. That includes purchasing high-value items such as jewelry, fine art, and collectible wine or spirits. While these gifts are often chosen with care and intention, their insurance coverage is frequently overlooked. In this article, we share proactive steps you can take during the holidays to ensure your most valuable gifts are properly protected from the moment they are received.

What To Know About Insuring Jewelry, Fine Art, And Wine & Spirits

It may not be the first thing we think about, but high-value gifts come with unique insurance considerations that often differ from everyday household items. Jewelry, fine art, rare watches, and collectible wine or spirits may be subject to specific coverage limits, exclusions, or valuation requirements that are not always obvious at first glance.

It is common for people to assume these items are fully covered once they are brought into the home, but coverage can vary significantly depending on the policy and the type of item. Taking the time to review your insurance during the holiday season helps ensure new gifts are insured appropriately and that there are no unexpected gaps in protection. Speaking to a professional at Navacord before making such a purchase can also prepare you and give you an idea of the type of coverage needed.

Why The Holidays Are A Key Moment To Review Coverage

While these types of gifts are purchased for various events throughout the year, they are more common during the holiday season. Jewelry, fine art, and collectible items often fall outside standard coverage limits in a home insurance policy. Without reviewing your policy, you may unknowingly be underinsured.

Adding blanket coverage for jewelry or artwork can help ensure gifts are protected even if you do not yet have exact descriptions or values. This type of proactive review helps prevent coverage gaps at a time when valuable items are entering your home.

The Step Many People Forget After Receiving A High-Value Gift

Something that’s often overlooked is not speaking with an insurance advisor. Here are some clear steps to take after you receive your new high-value gift.

Insure Your Jewelry

If you receive high-value jewelry during the holidays, the first step is to gather as much information as possible about the item. This includes details about the piece, its estimated value, and ideally a receipt if one was provided.

Once this information is shared with your insurance advisor, they can recommend the best way to insure the item. This may include scheduling the piece individually or adding blanket coverage, depending on the circumstances.

It is important not to assume jewelry is fully covered under a standard home policy. Every policy has specific coverage limits, and those limits vary.

Don’t Forget About Fine Art

Fine art presents unique insurance considerations, especially during the holidays when pieces may be gifted without prior planning. Fine art should typically be insured based on its replacement value.

In many cases, replacing a specific piece of art can be extremely difficult or even impossible. This makes accurate valuation and appropriate coverage especially important. Over time, the value of fine art may also change, which means coverage should be reviewed periodically rather than set once and forgotten.

Yes, Wine And Rare Spirits Can Be Insured

Wine and spirits collections are becoming increasingly popular holiday gifts, particularly limited-edition or rare bottles. Proper insurance coverage for these items takes into account not only their value but also how and where they are stored.

Collectors often overlook risks related to storage conditions, transportation, and shipping. Discussing storage methods and transport plans with your broker ensures the coverage reflects how the collection is actually handled.

High-Value Insurance Policies vs. Standard Home Policies

Standard home insurance policies are designed to protect everyday belongings and typical risks. While they do include some coverage for personal property, they often have strict limits on high-value items such as jewelry, fine art, collectibles, and wine & spirits. In many cases, these items are only covered up to a set dollar amount, and certain types of loss may be limited or excluded unless additional coverage is arranged.

High-value insurance policies are made for people with more complex needs, like those who own valuable collections or unique items. These policies can offer higher coverage limits, agreed value coverage, fewer rules about where items are kept or used, and claims handling that fits high-value property.

The Risk Of Delaying Policy Updates

It’s easy to think you may not need a policy update. Delaying policy updates after receiving an expensive gift can lead to significant coverage gaps. If a loss occurs before your insurance advisor is notified, coverage may not be in place for that item.

While it is never too late to insure a valuable item, the sooner you do, the better.

For households that regularly exchange high-value gifts, planning ahead can make a big difference. If you are purchasing a gift for someone in your household, notifying your broker before the gift is given allows coverage to be updated in advance.

Trends In Luxury Gifting

Over the last few years, luxury gifting has shifted toward items that may hold or grow in value over time rather than those chosen for their emotional meaning. Things like rare watches, fine art, and limited-edition wine & spirits are often selected with long-term value in mind.

Buyers are paying closer attention to details such as the rarity of the product, craftsmanship, and where an item fits within the current market. This means these gifts are often viewed as more than personal keepsakes. They can also be part of a broader financial picture.

Advice For Those Giving High-Value Gifts

If you are planning to give a high-value item this season, consider its full replacement value. This includes local sales taxes and current market prices.

Some items are in such high demand that their replacement cost may exceed the original purchase price due to supply constraints. Factoring this into insurance planning helps ensure the recipient is fully protected.

Losses can happen quickly and unexpectedly, especially during the busy holiday season. Notifying your broker as soon as possible is always the right decision, even if you are unsure whether coverage changes are needed.

Why Clients Choose Navacord

Navacord’s Private Client Solutions team has access to leading high-value insurers and deep experience working with clients who own valuable items and collections. This allows them to find tailored solutions that reflect each client’s unique needs.

Whether you are giving or receiving a high-value gift this holiday season, a conversation with your team can provide clarity, confidence, and peace of mind