Holiday Shopping Spree: How Your Homeowners Policy Covers Your New Electronics & Gifts

Your Spending Spree vs. Your Coverage Limits

Black Friday, Small Business Saturday, and Cyber Monday mark the start of the biggest spending season of the year. Whether you’ve bought a new $2,000 smart TV, expensive jewelry, or high-end electronics, your home just gained a significant amount of new, valuable property.

Most homeowners insurance policies have a built-in limit for personal property—everything from your couch to your clothing. When you suddenly add thousands of dollars worth of new items, you could be unknowingly exceeding that limit.

If your home were to experience a covered loss (like a fire or theft) in December, would your current policy fully cover the replacement cost of both your old and new belongings? The key is to check your personal property limits before the holiday rush ends.

Understanding Coverage: ACV vs. Replacement Cost

When assessing your new purchases, it's vital to know how your policy pays out:

Actual Cash Value (ACV): Pays the current market value of the item, factoring in depreciation. Your new TV would be covered, but your 5-year-old laptop would be replaced at a fraction of its original cost.

Replacement Cost Value (RCV): Pays the cost to replace the item with a brand-new one of similar quality. This is the gold standard for protecting new holiday purchases, as it ensures your spending power is fully protected.

If you don't have RCV on your personal property, the holidays are the perfect time to call your advisor and upgrade.

The Hidden Risk: High-Value Items & Sub-Limits

Standard homeowners policies place internal limits (sub-limits) on specific categories of high-value items, regardless of your overall personal property limit.

Item Type	Common Policy Sub-Limit	What This Means
Jewelry, Furs, Watches	Often $1,000 to $2,500	If you buy a new $5,000 diamond ring, only the sub-limit is covered in case of theft.
Computers/Electronics	Often a specified amount, or subject to the overall personal property limit.	If you buy high-end camera equipment, ensure the total value is factored into your policy.

The Solution: If you purchase a high-value item, you need to add a scheduled personal property endorsement (often called a "rider"). This specifically lists the item and insures it for its appraised value, typically without a deductible and with broader coverage than your standard policy.

Increased Risk: Theft and Holiday Travel

The holidays unfortunately see a spike in residential theft as thieves target homes filled with new, unboxed gifts.

If you are planning holiday travel, this risk is amplified. Before you leave:

• Review your personal property coverage.

• Avoid announcing your travel dates on social media.

• Secure your home: Use timers for lights and notify trusted neighbors.

Get Peace of Mind Before the New Year

Your home insurance is a dynamic tool that must evolve with your life and your purchases. Don't let your thoughtful holiday spending expose your family to financial risk.

Ready to ensure your new investments are fully protected? Contact InsuraPro Advisors today for a quick review of your personal property limits and a free quote on adding scheduled coverage!