If you spend enough time looking through your storage, your attic, or your closet, you may be able to gather some sort of collection you’ve been packing away for years. From rare coins to furs, baseball cards to priceless figurines or dolls, collectibles come in all shapes and sizes. One thing they all have in common, however, is the need for personal insurance specifically made for collectibles.
In some cases homeowners policies will cover your items’ full value. However, this all depends on how much your collectibles are worth, the specific type of collection, and the kind of loss that occurs. In wanting to be more safe than sorry, it’s best to be sure your art, collectibles, or your personal treasures are fully insured.
When You Need Insurance
Homeowners policies can contain limitations and valuation issues for collectible items. For example, an antique doll might be worth quite a bit due to its rarity, but a homeowners policy might only pay the cost to replace it with a new doll of similar quality.
Coverage for collectibles can be added as an endorsement to a homeowners policy, or as a separate policy, depending on the insurance carrier.
Here are some scenarios to consider:
- Broken water pipes destroy your antique furniture
- A shelf breaks, causing your glass figurines to fall and smash
- A home fire burns up your autograph collection
- A burglary occurs at your home, resulting in the loss of your fine art and furs
Because these items can have such high-dollar values and carry sentimental value, adding this kind of protection is a worthy investment that can also come with peace of mind.
How Much Insurance You’ll Need
Many collectors accumulate different kinds of items over the years and may not realize that they can significantly increase in value over time.
How much insurance you’ll need will depend on the size and makeup of your collection. Individual items might have a certain value, but a complete collection might be worth more than the total of the individual components. Generally, obtaining the right level of coverage for your antiques and collectibles requires an appraisal. This step is beneficial because if helps you make sure you have a written and documented valuation of your collection in the event that you need to file a claim.