If your collectibles were lost, damaged, or stolen, would your homeowners or renters insurance policy pay to repair or replace those collectibles? When asked this question, it’s not uncommon for a collector to respond “Well of course, that’s why I have insurance.” Unfortunately, that’s not always the case.
Assume Nothing. Question Everything.
Most collectors incorrectly assume that their collectibles are adequately or wholly covered under their homeowner’s insurance policy. Here’s a bit of unsolicited advice from unfortunate experience: When it comes to insurance, assume nothing and question everything!
Before making an assumption of coverage or purchasing an additional policy for your collectibles, speak with your homeowners insurance carrier first. When speaking with the carrier or your agent, make sure they understand the nature of your collection and the purpose of your call.
You’ll want to ask:
In most cases, you’ll likely need to purchase an additional insurance policy; referred to as a rider, which can be attached to your existing homeowner’s policy.
Another alternative you may want to consider, is specialty collectibles insurance. If the name hasn’t already given it away, collectibles insurance is designed specifically for the things you collect. So what’s the difference?
Collectibles Insurance vs. Homeowner’s Insurance
Appraisals – Most collectibles insurance policies do not require appraisals during the application process whereas homeowner’s policies will typically require appraisals for collections valued at $5,000 or more.
Deductibles – A zero-dollar deductible is extremely common for collectibles insurance policies. While some homeowner’s policies may offer zero-dollar deductibles, it’s not standard practice.
Limits – Collectibles policies typically have a much higher coverage amount versus homeowner’s policies. For example, a standard homeowner’s policy may provide collectibles coverage up to $2,000 before a rider is needed. Even when a rider is added, it may not provide the coverage needed to adequately insure the full collectible value of your collection.
Coverage – The way insurers assess the value of covered items is one of the most important differences between homeowner’s and collectibles insurance. Typically, homeowner’s policies will insure the actual cash value of items whereas collectibles policies insure the collectible value of the items. This difference could equate to a staggering difference in claim payments if a loss were incurred.
Another important distinction between the two types of policies are the types of losses that are covered. The vast majority of collectibles policies cover a wide-range of losses from theft, fire, and flood to natural disasters and accidental breakage. Also, collectibles insurance will also provide coverage for items lost or damaged during shipping, personal transit and exhibition whereas a homeowner’s policy limits its coverage to items lost or damaged while in the home.
Claims – When collectibles are insured through a separate collectibles policy, claims will not affect homeowner policy premiums. In addition, collectibles insurance companies tend to have more expertise; or access to expertise, in the areas they insure. This can be extremely helpful in expediting a positive outcome in the claims process.
Bottom line, while homeowners insurance might cover a portion of your belongings, it’s likely not enough or is costing you too much. And with that in mind, RelicRecord.com wants to help you affordably protect what you collect!
Collectibles Insurance by SURE.
We’re excited to partner with SURE, a leading insurance technology platform and licensed broker, to offer instant, hassle-free collectibles insurance that’ll cover you from theft, damage, loss, and more.
Policies are comprehensive, affordable, and cover you from the moment of purchase, whether you’re shipping an item to your home or transporting it yourself.
So how affordable is affordable? With SURE, you can secure up to $75,000 in coverage for only $150 a year, with a $0 deductible!
Get a collectibles insurance quote from SURE in 30 seconds or less…
Regardless of your preferred choice of insurance, remember that it is up to you to present and prove your claim. As such, it’s vitally important to keep detailed records of the items in your collection, including high resolution photographs, receipts and/or proof of ownership.Keep your records in a safe and secure place so they can be quickly accessed in the event of a loss. It’s also a good idea to attach a copy of your insurance policy to those records. The RelicRecord.com collectibles inventory management application can help you with all of the above.
Lastly, it’s always a good idea to regularly evaluate the value of your insured items. The value of collectibles can fluctuate, which may prompt you to seek additional coverage; or in some cases, to reduce coverage.
Content and associated insurance products are provided by Sure HIIS Insurance Services, LLC (“Sure”), a licensed seller of insurance. The above does not in any way constitute an endorsement or referral by RelicRecord.com of Sure’s products or services. The coverage referenced above may not be offered in all states.