Many people will utilize their credit cards to make purchases over the holidays.
What few people remember, is that most credit cards include free to the cardholder, insurance that protects the purchases in the event their new purchases are lost, stolen, or damaged, and also extend the warranty included with the product at the time of purchase.
Each credit card will have specific terms for the insurance coverage. Most policies cover only new purchases that are personal, non-perishable, and not for business purposes. Typical coverage exclusions are for tickets, currency or coins, art, antiques or used items, boats, and motor vehicles.
Every policy will require that you report the incident right away or within a certain time period such as 90 days. You will need to provide proof of damage or theft, and proof of purchase.
Such policies will contain a limit of liability and will contain an “other insurance” clause requiring other insurance that covers the same loss to pay first.
When your claim is approved, the monies are payable to the cardholder’s credit card account.
For example, a few years back I purchased two pairs of glasses (buy one and get one free) with all the extra anti-glare and other coatings costing me $700. When I brought the news glasses home and left them on my bathroom vanity, within minutes, my new puppy had pulled one off the counter and chewed not only the case but managed to mangle and chew up the glasses inside.
I had not even worn the glasses once!
I called my Visa provider and reported the claim. They asked me to fill out a form, provide a photograph of the item, and send in my receipt. Within a few weeks, my Visa was credited with 50% of the purchase price.
Where items come with a manufacturer’s warranty included with the purchase price, most credit cards will double the warranty up to one full year.
To learn about included coverage, look up your credit card on the internet and print out the coverage wordings or contact the credit card agency for details.
So when the dog rips up the gifts under the tree or your shopping bags are stolen from you while you turned your back for a moment, remember the purchase insurance with your credit card and enjoy the holidays!