advertisement
Despite your best planning, the holidays can take a turn for the worse -- whether through the malevolent actions of others or your own poor judgment. Here are some common holiday problems and how they can be resolved with insurance.
1. While shopping at a mall, you put your packages in your car and then go back inside. You return to discover that your purchases have been stolen.
Theft of personal property is covered under your home insurance. For any theft claim, you'll need to file a police report and pay a deductible. If your receipts are stolen along with your gifts, you'll need to document your purchases another way.
You might not need to use your home insurance if you bought the gifts with a high-end credit card. Some cards offer purchase protection if something you buy is stolen or damaged. (See "9 reasons to love credit cards.")
"Come December, (theft) becomes very common," says Terry McConnell, the manager of personal lines underwriting for Erie Insurance. He notes that for all theft claims you'll need to complete a "proof of loss" listing what was stolen, a description and the value.
Theft claims can be a headache for insurers because they are a major source of fraudulent claims. If your story seems suspicious, your claim is likely to be investigated. A claims adjuster may visit the stores you went to in order to find out whether you bought the items you say were stolen.
2. Your purse or wallet is stolen at a mall.
This is covered under your home insurance, up to your policy's cash limit. If you file a claim, you will need a police report and will have to pay the deductible, which could be more than your cash loss.
More from MSN Money and Insure.com
3. You send cash in a holiday card through the mail, but it arrives open and without the money.
This claim is much like a stolen wallet: The cash is covered by home insurance, but the claim might not be worth pursuing. (See "When NOT to file a claim.") You'll need a police report and deductible payment.
"How do you prove that you mailed it, and how do you prove they didn't get it?" asks McConnell. This situation makes a claim difficult.
4. You buy a flat-screen TV, and it tumbles off the back of your truck on the way home and is crushed.
Check your policy or ask your agent. You may be covered under your home insurance, but it depends on your insurer. State Farm spokesman Dick Luedke says this would not be covered by a State Farm home insurance policy.
5. You install plenty of lights and animated reindeer on your front lawn, and they are stolen in the dark of night.
Those would also be covered under your home insurance, but you must produce a police report.
Video on MSN Money
Avoid gift card scamsMake sure the gift card you're buying will still have cash on it when your intended recipient goes to use it.
6. While you are visiting out-of-town family, your belongings are stolen from your hotel room.
This theft is covered under your home insurance. There will be limits within your policy for specific theft losses. For example, it may pay out a maximum of $200 to $500 for theft of cash and up to $2,500 for jewelry.
Rate this Article
High
