It’s easy to assume that your collectibles are covered by homeowner or tenant insurance, but that’s not always the case. Often times, you only get the partial value of your collection if it’s lost or stolen, and sometimes you don’t qualify for coverage at all. Here you can see what collective insurance offers, how much it costs and when you can get it.
Why traditional homeowner insurance may fall short
Homeowner or tenant insurance is a great way to protect the cash value of items in your home as it covers damage from hurricanes, tornadoes, hail, wind, fire, and theft. Unfortunately, these guidelines don’t always cover the estimated value of your collectibles, which can be significantly higher than their present value. In addition, a standard policy can limit the coverage per item. anywhere between $ 500 and $ 2,000.
However, collectible insurance is different in a few ways: it can cover the total estimated value for a larger number of disasters (such as accidental breakage, flooding and damage caused by the mail). it has zero dollar deductibles; and it can be portable so that you can make claims outside of your home in certain scenarios, such as B. if your collectibles are damaged while traveling to an exhibition or trade fair. The tradeoff with all of this additional coverage is cost. Most collectibles can be insured for 1% to 2% of the item’s value per year. according to Investopedia.
When you can take out group insurance
While you don’t necessarily need an evaluation to apply for collector’s insurance, you may still want to evaluate your collectibles to make sure they are actually valuable (this Lifehacker post can guide you through the process). If the amount of your collection exceeds the present value limits of your homeowner or tenant insurance per item, you should consider collective insurance.
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After that, your next step is to speak to your homeowner’s insurance carrier and see what they can offer. Make sure they understand the nature of your collection and its estimated value, and ask if your current policy covers theft or damage for the total estimated value. You will also want to confirm what type of damage is covered and whether it includes flooding or accidental breakage.
You can also go shopping at this point. If you know other collectors, ask them for recommendations or search for insurers online, many of which specialize in this type of coverage. As with all insurance policies, carefully review all terms and the fine print before signing.
