Insurance cover vital for Christmas gifts

Parents will spend over £1.4 billion on Christmas presents for their children this year, according to new reports, highlighting the need for adequate home insurance.
As the amount of money spent on festive gifts for friends and family increases each year, so does the need to ensure that all expensive and important new items are covered under an insurance policy.
That equates to indulgent British parents spending £119 on each of their own children, plus another £16 on every other child they know. Churchill Home Insurance is urging homeowners to protect their properties.
Even those with existing policies have been warned to check that the new presents and toys are covered and do not go over the agreed contents insurance limits.
The UK’s children already have over £7.3 billion worth of toys and gadgets in their bedrooms, working out at £618 each, but after their bumper Christmas this figure will rise to around £750.
It is this increase that could push people beyond their home contents insurance limits.
“The research suggests that there are millions of pounds worth of gifts in homes around Christmas time,” said Martin Scott, head of home insurance at Churchill.
But while many home insurance providers automatically increase the value of contents cover over the festive season, typically by around ten per cent or £3,000 once twelfth night has passed and the decorations are put away, many of the presents remain.
Mr Scott explained “It’s important that once the Christmas period is over, homeowners review the value of their home contents to ensure that the limit did not return to the old level once Christmas was over, leaving the opened presents vulnerable.”
Vicky Emmott, senior underwriter Halifax Home Insurance, added, “The onus is on you to have the correct insurance in place to cover your gifts from loss or damage,even if they are being stored away from your home.”
“With high-value items such as iPods, PSP’s and children’s favourite Bandai Tamagotchi likely to feature on letters to Santa this year a fruitful Christmas could boost the value of your home contents by hundreds or thousands of pounds.”