Do I need Insurance?
A question all collectors eventually have to answer is should I insure my collection? To answer that question I recommend you ask yourself the following:
- If your collection was destroyed or stolen, would you be able to rebuild it or start a new collection without experiencing any financial hardship? If your answer is yes, then you don't need to insure your collection, although you still may want to.
- However, if the answer is no, then you should seriously consider insuring your collection.
Ok, so you've decided to insure your collection, now what?
Disclaimer: I'm not an insurance expert, but will share the approach that my experience and research has led me to take.
Homeowners / Renters Insurance
Depending on the type of collection you have and its value, your collection may be covered by your renter's or homeowner's insurance. Talk to your insurance agent about specifics, including:
- Amount your collection is insured for
- Deductibles
- Proof required of ownership and value
You may find that all or part of your collection is adequately insured.
For example, I have replacement cost homeowners insurance. Part of my collection includes an extensive library on conjuring and allied arts. Some of the books are common and readily available, and some are more rare and more valuable. In discussions with my insurance agent, I found out that the more common books in my library would be covered at full value under my replacement cost policy. However, many of the more high value books would be covered, but at much less than they are worth.
Personal Articles Policy
Depending on what your collection consists of you can get a personal articles policy for specific items through your insurance company. This can provide more comprehensive coverage, including accidental damage. For example, my Traveling Magician statue (discussed in the collection section) is currently insured under a personal articles policy. I chose to do this since it is a very fragile item and I wanted the additional protection against accidental damage that could happen if it is moved, the kids throw a ball and it gets hit, etc.
Specialty Insurance
I now have my collection insured though an insurance company that specializes in collectors. I found out about the company through a friend of mine who uses them and has a very valuable collection. I also researched and asked the insurance company lots of questions about different scenarios, etc. Here are the key things that I think you should know:
- My collection covers many different types of items. My insurance policy covers all items in my collection and is considered a general collector policy.
- When you insure your collection with them, it is by category and approximate value of each category.
- You maintain an inventory. In the event of a claim you provide the inventory, along with proof of ownership (receipts, photos, appraisals, etc). This is very useful, since as collectors we are often adding or trading/selling items in our collection.
- There is no deductible.
- I feel the policy cost is very reasonable, both for the peace of mind it provides, and for the ratio of cost to insurance amount. For example, each $1000 of coverage costs approximately $4.25. This amount may increase or decrease based on the total amount of insurance coverage (lower rate for a higher total value policy) and the specific categories of your collectibles.
I have my collection insured through:
Collectibles Insurance Services
888-837-9537
http://collectinsure.com/
Please note that I have been fortunate enough that I have not had to file a claim, but I did not find any complaints about them in my research. If you have had experience with Collectibles Insurance Services or other companies, please let me know and I would be happy to include your feedback.
Finally, always ask questions, and make sure that what you are told is in writing in your policy.