Why This Holiday Season Is the Perfect Time to Secure the Right Insurance

The holiday season brings cheer, family gatherings, celebrations, and the spirit of giving. But beneath the joyous atmosphere lies a set of increased risks and exposures that many homeowners, drivers, and business owners overlook — until it’s too late. From festive decorations and long road trips to higher theft rates and commercial demands, December and the surrounding holiday period consistently show marked increases in insurance claims and unexpected incidents. Preparing now with the correct insurance coverage is not just sensible — it’s essential.

Holiday Risks Are Real — and Often Costly

During the holiday season, certain types of claims rise significantly compared with the rest of the year. According to aggregated insurer claims data, home-fire claims increase by approximately 15 percent during the holidays, driven by festive lights, candles, and Christmas trees. Specifically, Christmas week is among the top three weeks of the year for candle-related claims, with median costs reaching around $50,000 per incident. Other fire hazards such as turkey fryers and fireworks also contribute to costly losses. Holiday tree-related fires alone have median claim costs of more than $100,000. Even the most costly individual incident on record involved an artificial Christmas tree, resulting in total losses of nearly $2.4 million.

The risk is not limited to fires. Seasonal insurer data shows that claims for theft increase by about 7 percent, and sewer-back-up claims rise by nearly 19 percent during the holiday timeframe. These statistics highlight why understanding and revisiting your home insurance policy before the holiday rush is a risk-management imperative.

Auto Risks Spike During the Holidays

The festive season also affects driving patterns and auto insurance exposures. Data from industry sources suggests that auto insurance claims increase by between 20% and 30% in the week before Christmas alone. This spike results from a combination of holiday shopping traffic, errand trips, and the added stressors of crowding and complex parking situations — often paired with winter weather conditions in many regions.

More congestion means more opportunities for fender benders, collisions, breakdowns, and unanticipated roadside incidents. For individuals and families who depend on their vehicles during the holidays for travel, work, deliveries, or visits, reviewing and confirming coverage levels on your auto insurance policy is not optional — it’s essential.

Commercial and Seasonal Business Risks Are Higher Too

For businesses, the holidays represent both opportunity and vulnerability. Retailers, contractors, delivery services, and other commercial operations see heightened activity, which also means increased risk exposures. The holiday rush can attract shoplifting, theft, inventory loss, employee injuries, cyberattacks on online retail platforms, and adverse customer interactions — all of which can trigger costly insurance claims if proper protections are not in place.

Retail physical stores, for example, experience elevated rates of theft and shoplifting due to heavy foot traffic and distracted staff. E-commerce businesses, meanwhile, are vulnerable to cybersecurity threats during peak online sales, as hackers take advantage of high transaction volumes and seasonal urgency. Without adequate commercial property, general liability, or cyber liability insurance, these losses could fall directly on the business owner — jeopardizing profitability and financial resilience.

Holiday Fraud and Theft Concerns

Holiday seasons also show noticeable increases in insurance fraud and property theft risks. Reports note that vehicle thefts spike in the final months of the year, with claims often tied to vehicles left unattended in busy retail parking lots or other high-traffic areas. In addition, widespread consumer scams — such as fake delivery notifications, package theft (“porch piracy”), and identity theft — are prevalent during peak holiday shopping periods. An AARP holiday fraud survey cited by insurance industry experts found that 80% of U.S. adults report being targeted by a scam during the holiday season.

For businesses, seasonal employees, extended hours, increased deliveries, and the rush of customer volume create fertile environments for fraud, which may lead to liability or property claims unless appropriate safeguards and insurance are in place.

Understanding What Your Policies Cover — and Why It Matters

When it comes to insurance, having a policy is not enough — understanding the scope, limits, exclusions, and nuances of your coverage matters just as much. For homeowners, a typical standard policy should include:

• Dwelling coverage to protect the structure of your home.
• Personal property coverage to protect belongings such as electronics, furniture, and holiday gifts.
• Liability protection in case a guest is injured on your property.
• Additional living expenses coverage if your home becomes uninhabitable due to a covered loss.

For auto insurance, standard components include:

• Liability coverage for damage you cause to others.
• Collision coverage for damage to your own vehicle.
• Comprehensive coverage for non-collision losses such as theft, vandalism, or natural hazards.
• Uninsured/underinsured motorist coverage to protect you if others are at fault and lack sufficient coverage.

For businesses, critical policy types include:

• Commercial property insurance to protect your building, inventory, and equipment.
• General liability insurance for customer injuries and legal defense costs.
• Workers’ compensation insurance to cover employee injuries on the job.
• Business interruption insurance that can help replace lost income if operations are unexpectedly halted.

Simply put, the right insurance helps transfer risk from you to a carrier, relieving financial burden when an unexpected event occurs that could otherwise devastate personal or commercial finances.

Why Purchasing or Updating Insurance Before the Holidays Is Wise

While year-round risk exists, the holiday season uniquely compounds risk for several reasons:

1. Increased Home Activity: Decor, gatherings, cooking, guests, and heating systems are all in high use during December. This seasonal change leads to more accidental fires and home incidents than nearly any other time of year.
2. More Driving and Travel: Traffic congestion, winter weather, and higher auto use increases collision exposure.
3. Higher Theft and Fraud Rates: Burglary and consumer scams rise with the frequency of gifts, packages, travels, and crowded shopping environments.
4. Business Seasonality: Retail and service industries see higher foot traffic and online orders, putting pressure on operational security and inventory control.

If your policy hasn’t been reviewed in a year, or if your life circumstances have changed — such as purchasing new technology, taking on employees, or increasing your business volume — now is the time to revisit your coverage.

Insurance Isn’t an Expense — It’s Protection and Peace of Mind

Many people view insurance as a necessary but non-gratifying obligation. Yet in reality, the right insurance is one of the most reliable forms of risk management available. A comprehensive insurance approach protects your financial stability, your lifestyle, and your legacy — especially when risks spike during the holiday season.

During Christmas and New Year’s celebrations, no one wants their festivities to be interrupted by an accident, theft, fire, or other unforeseen events. Getting the right insurance coverage before the holiday rush is not only prudent — it’s an investment in peace of mind for you, your family, and your business.

For more info, text or call Monreal Insurance Solutions (909) 757-1311 or click link in bio for a quote.