GREENSBORO, NC -- You take a lot of care picking out the presents, Wrapping the presents and don't forget paying for the presents! Which is why you should also take the time to insure those presents, the pricey ones anyway.

“The average person is going to assume everything in my home is covered, the policy clearly states it's not,” says Christopher Cook of Alliance Insurance Services. “But none of us take the time to read our policy so, we don't know that.”

When it comes to theft, a standard homeowners policy covers $1,500 for jewelry, $2,500 for firearms and $200 for cash you may have stashed.

Just recently, a friend of mine posted this saying: The cleaning company stole jewelry from my house. The insurance company would only cover $1,500 of it and the company want to raise my rate by $1,200 for the claim.

What?!?!? There's a couple of points here. She needs to make a claim with the cleaning company or take them to small claims court.

The insurance company isn't being stubborn, the $1,500 is the standard.
And the rate raise for the claim, well, our expert says it sounds a little excessive but rates go up when you make a claim.

“A 20% rate increase in the last 5 years if they have theft claims carry more and catastrophic claims carries less.”

So, is it better to pay for the extra insurance versus the claim raise? Let's say you had a piece of jewelry that was worth $2,000, it probably will cost you $20 a year to insure.

Bottom line, you need to call your agent and make sure whatever expensive presents are under the tree-- or that you've bought all year long are covered.