Are you a collector? If you have an assortment of antiques or knick-knacks that brings you great joy, you just might be. Collections of baseball cards, beloved comic books, fine wine, charming figurines or classic stamps are just a few examples of treasured items that may need some extra attention in your insurance policy.
Insurance covering your prized collection may be added to your homeowners insurance policy under a “special collection” rider, but that coverage usually doesn’t exceed $2,000. Plus, unless you specifically asked about it or request a rider, you may not have coverage on your special collections whatsoever. This is why special “Valuables and Collectibles” insurance exists. Click here to see the difference between coverage under a homeowners policy and a collectibles policy.
The best thing about insurance dedicated specifically to your collections or valuables is that specialty coverage accounts for factors that regular homeowners insurance may not. Collectibles pose a unique set of risks to insurers. Unlike a disaster that may threaten your collection as a part of your home—like, say, a flood which ruins your stuffed animal collection and your everyday items the same way—there are threats to collections like a ball through the window of your curio cabinet that could wreck your glass figurines in a unique and potentially irreplaceable way. Collectible policies can cover these unique circumstances.
With homeowners insurance, coverage typically accesses the actual cash value of a collection instead of its current market value, which can be a significant difference and which a specialized policy can account for. Generally, the cost of Collectible Insurance is relatively low, especially when you consider how much you’ve invested into building, growing and tending to your collection in the first place. More often than not, coverage costs around 1% to 2% of the market value of pieces you’re covering.
Just like most insurance, your rate is based on the value of the collection. However, storage of the collection can also be factored in. Do you have all your baseball cards in a locked, fireproof box, or in a flimsy binder under your bed? As you take precautions to protect your own valuables, you may qualify for a lower insurance premium.
If you’re a collector, it’s important to appraise and document your collection. Then talk to one of our trusted insurance advisors to make sure each unique piece is protected for its full value. In many cases, the insurance carrier will not even require a separate appraisal. After generations of being passed down, you want to do whatever you can to make sure you’re able to transition your items to the next collector!GET A QUOTE TODAY
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