Insuring Your Collectibles: A Guide to Valuable Items Insurance
With the rise of e-commerce sites like eBay, it has become easy to find and purchase collectibles. Again, you may inherit valuable vintage or antique items from your parents or grandparents.
These items are usually expensive and irreplaceable, hence the need to protect them against theft, damage, or loss. Sadly, common insurance policies like homeowners or renter’s insurance limit or exclude coverage for collectibles.
That may leave your artwork and other collectibles unprotected, creating the need to purchase additional coverage to protect your belongings. That’s where collectible insurance comes in to help protect your expensive artwork and collectibles and offer peace of mind.
What is Collectibles Insurance?
Collectibles insurance is a special coverage designed to offer comprehensive protection to expensive artworks and valuable collectibles.
It protects your belongings against unwelcome events like theft, damage, or loss. If an insured event occurs, your insurance carrier awards the agreed-value coverage.
What Items Does Collectible Insurance Cover?
Collectible insurance covers a variety of valuables, including:
Rare coins
Cameras
Antiques
Vintage watches
Trophies
Golf equipment
Comic books
Jewelry
Fine art
Musical instruments
Sports and military memorabilia
Golf equipment
Trading cards
Stamp collections
Benefits of Collectible Insurance
Insuring your collectibles offers several benefits, including:
Peace of mind: Coverage for your valuable belongings against unfortunate events gives you peace of mind.
Financial protection: Your collectibles can grow into a valuable investment. Insuring that value offers financial protection.
Cost relief: Collectible insurance covers repair costs, the cost of finding a buyer, authentication fees, and more when selling or transferring ownership of an item.
Does Homeowners Insurance Cover Collectibles?
Standard homeowners policies may offer coverage for valuable items, but only to specific limits. Mostly, the maximum claim amount for valuable items under homeowners insurance is usually below $2,000 per item.
Your valuable collection might possibly exceed that amount. Again, some homeowner’s policies tend to exclude coverage of non-household items and fragile items.
So if the unexpected occurs, you might be exposed to significant losses. Thus, check with your carrier to see what’s covered and consider buying separate collectible insurance specific to your artwork and collectibles.
Ways to Protect Your Valuable with Collectible Insurance
Collectible insurance can be purchased in two forms, including:
Valuable Items Endorsement: You can add a rider to your existing homeowners or renters insurance policy. This offers blanked coverage up to a certain limit and is great for protecting a certain class of artwork or collectibles.
Personal Articles Floater(PAF): This requires you to take an inventory of your collectibles and make a list of all the specific items to be covered. PAF is great for protecting multiple items across different classes of artworks and collectibles.
How Much Does Collectible Insurance Cost?
The cost of collectible insurance may vary among carriers based on the value of your collection, the amount of coverage you need, how you store your collectibles, and more.
That said, premiums may range between 0.5%-2% or about $1-$5 per year for every $1,000 of the insured value of your collectibles.
Factors To Consider When Purchasing Collectible Insurance
Top things to keep top of mind when purchasing collectible insurance include:
Document your collection: Take inventory and create a list of your collection and purchase costs.
Get appraisal: Get a formal appraisal from an expert to help you determine the value of your items and how much insurance you need.
Check your homeowner’s policy: Check the maximum claim amount in your homeowners or renters insurance for artworks and collectibles.
Find a reliable carrier: Compare collectible insurance policies from at least 3 insurance companies. Check what’s covered, including replacement cost options, repair costs, authentication fees, and any restrictions or exclusions.
Compare rates: Once you’ve compared apples for apples, choose a carrier with the most affordable rates for the same insurance amount and service.
An independent insurance agent can help you find affordable collectible insurance rates.
