27 2021

From Comics to Fine Wine, How to Insure Your Collectibles

by admin

What may have started as a hobby has now turned into much more. But the question is, how do you protect your collectibles from loss, theft, or damage? 

Many people incorrectly assume that all the contents of their homes are covered under homeowner’s or renter’s insurance; others have never considered their insurance coverage at all. Whichever camp you fall into, it’s essential to understand the fine print included in your insurance policy – you may be surprised at what you find. 

What Your Home Insurance Policy Says About Collectibles and Memorabilia

Contrary to popular belief, basic home insurance does not offer blanket protection for all the contents of your home, particularly where jewelry, pricey artwork, and collectibles are concerned. While many of your valuables might be covered under your policy, there are often limitations on that coverage that may not adequately protect valuable collections and memorabilia. Some policies may exclude collectibles altogether. 

If your collection is ever damaged or stolen, your insurance policy will dictate the compensation you are entitled to. However, coverage limits, exclusions, clauses, and the basis of settlement can vary dramatically, depending on the policy type and insurance provider. For those reasons, you must read through and understand the details of your coverage; if you need help, contact your insurance broker in New Westminster

How to Ensure Your Prized Collections Have Adequate Coverage

Home insurance provides coverage for personal belongings, but this coverage is subject to a personal property coverage limit. It may be simple enough to update an insurance policy to reflect a large one-time purchase like an expensive engagement ring, but how do you protect your pricey wine or coin collection? 

If your home insurance policy does not already provide protection for high-value items such as collectibles and memorabilia, it’s possible to have changes made to provide coverage for these types of personal belongings. 

Often referred to as “riders,” insurance policy endorsements can add to or change your coverage to include collectibles and memorabilia. However, since such endorsements are additions to your policy, be prepared for an increase in your premiums. Before making any changes, it’s a good idea to check in with your insurance broker in New Westminster. Other insurance providers may offer better terms for collectibles and memorabilia insurance coverage. 

How to Get Started on Insuring Collectibles and Memorabilia

Before you can have your collectibles and memorabilia insured, you need an estimate of the value of the items. No matter what you collect, chances are there are online forums where you can gather pricing information. 

Once you have a better idea of what your collection is worth, you can consult your insurance policy to determine whether you have sufficient coverage. Even if you have personal property protection, it may not be enough to protect the total value of your collectibles or memorabilia. If you need help, an insurance broker can help you better understand the limitations of your coverage. 

In some cases where item values are not readily available, you may need to have your collection professionally appraised.

Your next step is to create a detailed inventory of your collectibles or memorabilia, including pictures and as many receipts as you can gather. For safety, one copy should be kept either outside your home or online. In the event of loss or damage, this list will be essential to processing your claim. 

If you have questions about insuring valuable collectibles or memorabilia, the insurance brokers at Prime Insurance can help you better understand your coverage options.