What do you buy for that special someone when you can’t think of anything else? The most likely answer is a gift card. The National Retail Federation has reported that Americans spend more than $26 billion on gift cards during the holiday shopping season, and the average consumer spends more than $120. The reasons are simple — gift cards are easy to purchase, never come in the wrong size or color, and the recipient is guaranteed to get an item she wants with it. Like anything else of value, however, they come with risks. Some have fees attached to them, and some expire if the owner does not use them within a certain period of time. They are also vulnerable to theft, disappearance and destruction. If your gift cards are stolen during a burglary or burn up during a house fire, will an Ohio homeowner’s insurance policy reimburse you for them?
The standard Ohio homeowner’s policy provides limited coverage for gift cards. It limits coverage for money, bank notes, coins, “stored value cards,” smart cards and similar cash-like items to $200 for all property in that category. Also, the policy covers personal property, including cash and similar items, only for a list of 16 causes of loss. The list includes such causes as fire or lighting, windstorm or hail, explosion, smoke, vehicles, theft, vandalism, weight of ice, snow or sleet, and others. The policy provides no coverage if a cause that is not on the list is responsible for the loss.
Furthermore, the most common deductible on home insurance policies is $ 500. 00. So let’s say you just spent $ 350.00 on gift cards for your family and friends and someone steals then from your car or house. In this example, you would be out the entire amount!
So, our advice to you when either purchasing or receving gift cards this Christmas season: Treat and protect them just like you do with cash money.