Does homeowners insurance cover holiday decorations?

If you take great pride in your outdoor holiday display, you no doubt want to protect it as best as you can.

This leads to the question: Does homeowners insurance cover holiday decorations?

Common risks to holiday decorations

It might surprise you, but a lot can go wrong with holiday displays. One common problem is theft. In fact, there have been cases where thousands of dollars-worth of decorations have been stolen from people’s yards. Vandalism also occurs with shocking frequency, when people damage, deface or destroy decorations. Finally, there is always the possibility of winter weather mangling your hard work.

Are holiday displays covered?

If your property is insured, your insurance company should cover decorations placed on the property. The amount of coverage will depend on the limits listed in your policy. Review your policy prior to decorating to assure there is no existing clause excluding décor coverage or anything that labels them a nuisance.

The problem with filing a claim

• Your deductible: If you have not made any claims this year and therefore have not started paying down your deductible, the cost of the damage may be less than your limit—meaning you get no financial benefit. Given how close it is to the end of the year, other incoming claims are unlikely. You could end up spending a lot of time on paperwork and interviews to receive zero benefit.
• Higher rates: More claims made can potentially result in higher rates next year.
• Supporting evidence: There is also the possibility that the insurance company will demand a police report, which then requires additional time, interviews and paperwork. It is rare for a homeowner to feel like all this effort is worth it in the end.

Protecting yourself

If you are investing significant money in your holiday display and you would be open to filing a claim if needed, then prepare for the possibility. Keep receipts for all holiday decorations and take photos of them as a safety measure.

If you are concerned about having a policy to cover your decorations, speak with an insurance broker.