Anyone who is a collector will know that is an extremely rewarding hobby. The moment you hold that missing record from your collection, that prized artwork or vintage brooch is a moment of sheer delight. It stands to reason that you would want to protect your valuables like any other item in your house.
Collectible items can be hard to place a value on. This means they can be harder to insure. Below, we discuss why you should consider collectible insurance.
What is Classed as a Collectible?
Though they have many different names, collectibles are anything of value or interest to a collector. The collector's interest themself can be vast and varied and could range from antique pillboxes to AC/DC records. Online auction sites have made collecting particularly appealing to people, and it has seen a surge in popularity since the COVID epidemic.
Manufactured collectibles are also sometimes known as contemporary collectibles. These are items that have specifically been designed with collectability in mind. Limited edition items, variants, and special editions often fall under these categories.
Do I Need Collectible Insurance?
Many collections start out small and grow over time. If you find your collection is becoming quite large and increasingly valuable, it is probably time to get collectible insurance.
Have a look at your collection. Total up the rough value of the items. If you would not be able to replace them financially in the event of a fire or flood, it is a surefire indicator of the need for insurance.
Will My Normal House Insurance Cover It?
Usually, your normal home insurance will not cover any antiques or collectibles. In fact, artwork, antiques, and collectibles are severely limited or excluded from the majority of insurance policies. This is because their values can vary so differently that it would be impossible for companies to be able to payout.
Imagine, for example, a homeowner took out an insurance policy that covered artwork. In the event of an accident, that policy could be paying out on a $100 piece from the local art market or a priceless sketch by Van Gogh.
Start by taking out your current home insurance policy. Check to see what it says about special collections. it should specify if it limits the amount you can claim, or excludes them completely. If it is limited, check the value of your collection.
If it exceeds this amount or totally excludes them all together, you need collectible insurance.
Keeping an Inventory
It will help your insurance, and growing your collection, if you keep an up to date inventory of your stock. This extra important as many collectibles and antiques do not come with a traditional receipt, especially if you have found them from garage sales and fairs. Begin by creating an excel spreadsheet. It should contain brand names, model names, serial numbers, your purchase dates, and the amounts paid for items. You can also add any other information particular to the antique or collectible, such as variation or condition.
Open up a separate folder and, in it, keep a detailed picture archive of the item. Show it from differing angles using well-lit pictures. Date the shots and save them along with any proof of purchase, such as receipts.
Print this inventory off, along with the pictures, and place them in a safety deposit box. Also, back up the digital files so you have multiple records of your purchases. You could also create a video of your collection to save digitally.
Collectible Grading
Many collectibles have their own grading authority boards. For a price, these places will mount your collectibles in a protective casing. They will then grade their condition using a pre-determined scale and provide you with a certificate.
These can be extremely useful for anyone wanting to ensure their collectibles as it can count as an official piece of evidence that you owned the item. Coins, comics, and action figures can all be graded in this way. It can be expensive to do, especially if you have a large collection.
Formal Appraisals
If boxing off your collection to be graded sounds like too much cash and effort, get an appraisal. Check your local area for dealers who specialize in your type of collectible. Reach out to them and ask if they know of any people who will do appraisals.
Be mindful of people doing appraisals who are also dealers. They may wish to devalue your collection so that they can make an offer. Always go for people who are designated, appraisal experts.
Be Mindful That Prices Fluctuate
Always remember that prices in collecting fluctuate. You may have your items valued, insured, and you may find that prices drop. In this case, they will be insured for even more than you paid.
Also, remember that prices may go up. If this is the case, it is up to you to notify your insurance company of this and change your policy accordingly. If not, an accident may leave you unable to complete the collection despite insuring them.
Locate An Insurer
Once you have the collection valued and documented, it is time to locate an insurer for your prized possessions. You could approach your current insurer and ask if they can extend your coverage or if have their own collectible insurance.
If not, then look for specialist insurance providers. you may find general collectible insurers or people who insure specific niches such as numismatics. The art world has some very specific, high-quality insurance companies who specialize in artwork insurance.
Keep on Collecting
Once you have collectible insurance you can concentrate on the important business of building that collection. Remember to notify the insurer of any changes to the value, such as new additions or sales to your collection.
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