Does Insurance Cover Gift Cards?

Does homeowners insurance cover gift cards

More and more insurers are now beginning to cover gift cards under their homeowners’ insurance policy.

Gift cards are commonly utilized in stores where you shop frequently. Physical and E-code are the two types of gift cards. Depending on the brand, gift cards have different designs. Although, general elements such as currency and denomination would be used on the identity cards.

Now, Are Gift Cards Covered by Insurance?

Yes, there are insurance firms that will cover banknotes, stored value cards, smart cards, and other cash-like things if they are lost. Fortunately, gift cards fall inside this category; they are referred to as stored-value cards under this regulation.

In certain instances, the insurance suffers a partial loss for anything in this category worth less than $200. Only 16 losses are listed as being covered by the insurance. Fire or lightning, windstorm or hail, explosion, smoke, cars, theft, vandalism, the weight of ice, snow or sleet, and others are only a few examples.


Insurance Companies and Gift Cards

Gift cards have grown widely accepted in recent years. These cards, on the other hand, can have an unfavourable outcome. If your cards have been stolen, misplaced, or destroyed, you may be asking if insurance will cover the loss, and if so, what form of insurance will cover it. The short answer is that gift cards are covered by insurance, but not all of them.

Insurance companies, as we all know, are typically specified in their products. Some specialize in different types of insurance, such as vehicle insurance, health insurance, life insurance, and so on. There are a few insurance firms that worry about details or things like gift cards because they are easily overlooked.

Is Homeowners Insurance Covered for Gift Cards?

Gift cards are covered in part by a normal homeowner’s policy. Money, banknotes, coins, “stored value cards,” smart cards, and other cash-like objects are limited to a certain amount of coverage for all property in that category, which is normally $200 but can vary.

In addition, the policy only covers personal property, such as cash and similar commodities, for a list of 16 different types of losses. Fire or lightning, windstorm or hail, explosion, smoke, cars, theft, vandalism, the weight of ice, snow or sleet, and other factors are all on the list. If the loss is caused by something that isn’t on the list, the policy won’t cover it.

How does insurance cover gift cards

When you’re at crossroads of what to do for that special someone, what do you do? The answer is a gift card, which is being used more frequently these days. According to some reports, during the holiday shopping season, Americans spend more than $26 billion on gift cards, with the average buyer spending more than $120.

Why do Americans spend so much money buying gift cards? The reasons are straightforward: gift cards are quick to obtain and easy to sell. The next reason is that they can never arrive in the incorrect size or colour because the issuers ensure that the recipients receive the item they choose. They do, however, come with hazards, just like everything else of value. 

For these products, some insurance companies may offer to raise the amount of coverage and the covered causes of loss. So, it’s important that you speak with a reliable professional insurance agent near you to find out who those firms are and how much they will cost.


You may be able to safeguard yourself against the loss of these typical presents for a modest fee. Because policies differ, check your policy and speak with an insurance agent near you to learn more about what is and isn’t covered.

Emenike Emmanuel
Emenike Emmanuel is a multiple award-winning blogger, CEO of Entrepreneur Business Blog, Chief Evangelist of Ebusinessroom Ventures, and the Lead Coach of an online community of over 12,000 business owners called, The Excellent Entrepreneurs' Network. He’s here to help you start, manage and grow a profitable and sustainable business using digital marketing strategies. Follow him on Facebook, Twitter, Instagram, LinkedIn & Pinterest with this handle, @emenikeng. Telegram group - | Email: [email protected]

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