|
Properly Protect your Treasured Collection
Every year millions of Americans celebrate birthdays, anniversaries, and holidays by giving and receiving valuable collectibles as gifts. American Collectors Insurance understands the value of your growing automobilia collection and knows how to help you properly insure it at truly reasonable rates.
Collectors may not realize that collectibles are typically not adequately covered by homeowners’ insurance, according to Laura Bergan, Director of Marketing, American Collectors Insurance. There are significant risks associated with the limitations in homeowners’ insurance of which collectors should be aware.
 “Some collectors mistakenly assume that they have ‘all-risk’ coverage for anything in the house,” says Bergan. “Even if they do have all-risk coverage, the reimbursement from the insurance company may be based on actual cash value (replacement cost less depreciation) rather than collector market value.” Bergan adds, “Most homeowners’ policies do not cover losses such as flood, accidental breakage and earthquake, and we’ve seen that those types of losses can be devastating to valuable collections.”
The Independent Insurance Agents & Brokers of America organization estimates that a consumer needs specialty coverage if valued collectibles exceed 10 percent of the value of all insured household possessions.
Specialty policies routinely are used for auto collectibles that retain and/or appreciate in collector value—things like gasoline globes and pumps, die cast model cars, and vintage signs.
American Collectors Insurance urges passionate and enthusiastic collectors to consider these key items:
1. Homeowners insurance protects a dwelling and its contents (furniture, appliances and clothing), typically on an actual cash value basis. In the event of a claim, collectibles may be lumped in with personal property. The claim may be paid based on replacement cost, less depreciation.
2. A specialty collectibles policy will insure collectibles for an agreed value. Consider what replacement costs are for an item or collection, and peg the insurance based on those numbers. Collection values of $10,000 or less can be insured for $75/year (most states). Additional coverage can be purchased for collections exceeding $10,000 in value.
 3. Collectibles policies typically provide all-risk coverage (including coverage for flood, earthquake damage and accidental breakage). Coverage also can be provided for mysterious disappearance for items that are worth at least $2,000 and arescheduled on the policy.
4. More than one collection in the same household (e.g., vintage toy collections and automobilia can be covered by one collectibles policy.
“People typically spend years and thousands of dollars amassing their dream collections. It makes sense for collectors to consider a specialty policy, given the limitations of homeowners insurance and the ease with which a policy can be purchased through American Collectors Insurance,” Bergan concluded.
For additional information about properly insuring your collection, please visit www.AmericanCollectors.com or call 1-800-360-2277 to speak with a licensed product specialist.
Note: Currently American Collectors does not have a market for "paper" collectibles (e.g., stamps, trading cards, comic books, etc.), coins, statuary, or fine art.
|