Does My Home Insurance Cover Stolen Holiday Gifts?

December 9, 2024

As we buy gifts for family and friends, it’s easy to overlook an unfortunate reality: the holiday season is also a peak time for home break-ins. With holiday gifts under the tree, if these items are stolen during a break-in, does your home insurance policy cover this?

Let’s look at how home insurance works when it comes to stolen holiday gifts.

Does home insurance cover stolen holiday gifts?

The good news for homeowners and renters is that most standard home insurance policies do cover stolen personal property, including holiday gifts. Whether the gifts are for your family or friends, they typically fall under the “personal belongings” category in your home insurance policy.

The specifics, though, depend on your individual policy. Here are the key considerations:

Personal property coverage

Personal property coverage is a standard part of home insurance policies, designed to protect the items you own against theft, damage, or loss. This includes the gifts you’ve purchased and stored in your home, as long as they were stolen during a covered incident, like a break-in.

For example:

If your home is broken into and gifts under the tree are stolen, your home insurance should reimburse you for their value, subject to policy limits and your deductible.
If you bought a pricey watch or designer handbag as a gift and it’s taken, that item would likely be covered under this section of your policy, but you’ll need to check your policy.

Policy limits

Every home insurance policy has limits on personal property coverage. This means there’s a maximum amount the insurer will pay for stolen items. For example, if your personal property coverage limit is $50,000, that’s the most you can claim for all stolen or damaged items.

It’s important to note that high-value items, like jewelry, electronics, or collectibles, may have sub-limits. If you’ve purchased a particularly expensive gift, you might need additional coverage (often called a rider or endorsement) to ensure it’s fully protected.

Deductibles

Your deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in. For example, if your deductible is $1,000 and the value of the stolen gifts is $1,500, your insurance will reimburse you $500.

For smaller losses, it may not make financial sense to file a claim, as the reimbursement might be less than or only slightly above your deductible.

What about gifts stored outside your home?

Not all gifts are stored under the tree. Sometimes, we stash presents in the car, in the garage, or even at a relative’s house to keep them a surprise. What happens if those gifts are stolen?

Gifts in your vehicle

If gifts are stolen from your car, your home insurance may still cover them under the “off-premises” clause in your policy. This clause extends coverage to personal belongings stolen outside your home, such as from your vehicle or a hotel room.

It’s worth noting that your car insurance typically won’t cover stolen personal property—it only covers the vehicle itself and its built-in components.

Gifts at someone else’s home

If you’re storing gifts at a friend’s or family member’s house and they’re stolen, your home insurance might still cover them. Again, this depends on your policy’s off-premises coverage limits. Be sure to check with your insurer to confirm what’s included.

How to file a claim for stolen holiday gifts

If you experience a break-in or theft, taking prompt action is crucial to ensure your claim is processed smoothly. Here’s what to do:

1. Report the incident to the police

Before contacting your insurance company, report the theft to the police. A police report is often required when filing an insurance claim for stolen items. Provide as much detail as possible, including:

A list of stolen items
Estimated value of the gifts
Any evidence, like photos or receipts

2. Document the loss

Compile a detailed inventory of the stolen gifts, including:

Descriptions of each item
Original purchase price
Date and place of purchase
Receipts or credit card statements, if available
Photos of the items if you have them

Documentation is key to ensuring your claim is processed without delays.

3. Contact your insurance provider

Notify your insurance provider as soon as possible. They will guide you through the claims process and let you know what additional documentation may be required. Be prepared to provide:

A copy of the police report
Your inventory of stolen items
Any proof of purchase or ownership

4. Work with the adjuster

An insurance adjuster may need to assess the loss. Cooperate fully and provide any additional information they request. Once the claim is approved, you’ll receive reimbursement for the stolen gifts, minus your deductible.

Tips to protect your holiday gifts

Here are some tips to help protect your holiday gifts from theft:

Invest in home security

A visible security system can deter burglars. Consider installing:

Door and window sensors
Motion-detecting lights
Security cameras
Smart locks

Keep gifts out of sight

Avoid leaving gifts in plain view through windows or in your car. Store them in a secure, concealed location until it’s time to give them.

Use secure wrapping locations

If you’re wrapping gifts at home, choose a location that’s not easily visible or accessible to potential intruders.

Insure high-value items

For expensive gifts, consider purchasing additional insurance coverage. This ensures they’re fully protected, even if your standard policy limits are exceeded.

Be cautious with online shopping

If you’re shopping online, ensure packages are delivered to a secure location. Consider using package lockers, requiring a signature for delivery, or having items shipped to your workplace.

Final thoughts

Having holiday gifts stolen during a break-in is an upsetting experience but knowing that your home insurance can help ease the financial burden provides some peace of mind. As always, it’s essential to review your policy’s details to ensure you have adequate coverage, especially during the holidays when the value of belongings in your home might increase.

A little preparation can go a long way in protecting your gifts and preserving the joy of the season.