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Should You Insure Your Gifts?

Gifts are special, as they can mean so much to the person receiving them. But what if something goes wrong with the present? It can be an incredibly frustrating experience and something that you might not want to risk happening again.

That's why it's often worth considering buying insurance on gifts as a way of protecting yourself and your loved ones. Of course, there are a lot of pros and cons to consider when deciding whether to insure a gift. Still, in the end, it's about providing peace of mind with your gift – and protecting a memorable experience.

How to Insure Your Gifts

There are a few places to find insurance to protect gifts purchased for someone else. But it all boils down to where a gift is when a loss occurs.

Gifts kept at your home may be covered under your homeowners insurance policy. While at your house, gifts are simply considered contents. If they were damaged or stolen, coverage would be afforded under your policy, subject to any deductibles.

However, there may be limitations on how much coverage is available. For example, jewelry is often capped at $1,500 per item. In addition, many insurance companies allow you to schedule higher-value things. However, this may only be practical if you have the gift for a certain amount of time.

Coverage afforded under a homeowners or renters insurance policy is only valid while someone within the household possesses the gift. Therefore, if you are giving your gift to someone who does not live with you, purchasing a standalone policy may be worthwhile.

A standalone item policy is the most expensive option. The benefit, however, is that the gift may be insured for some time after it has been gifted. The extra time allows the recipient to obtain their own insurance if desired.


There are a lot of pros and cons to consider when it comes to purchasing insurance for the gifts you give. Ultimately, whether to purchase insurance depends on the situation and the giver's preferences. For many, the more expensive or meaningful a gift, the more likely insurance should be considered.

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