Many people are giving and receiving various forms of gift cards not only during the Christmas holidays but all year long.
The National Retail Federation said that $25 billion will be spent on gift cards this Christmas season (2009), up from $18.5 billion for Christmas 2005.
Interestingly another research firm Tower Group estimates that approximately $8 billion in gift cards purchase this year will eventually go unused, according to the Wall Street Journal.
Unfortunately for most insured’s the homeowners policy (HO-3) treats gift cards the same as cash, providing only $200 in the aggregate. The homeowners policy now refers to Gift Cards as Stored Value Cards.
Our suggestion is to buy gift cards with smaller values not to exceed $200 and to use them as soon as possible.
Please read your policy for exact policy detail.
What is your favorite Gift Card to give or receive?
Nibby, great information. Thanks for sharing.