Being broken into is no laughing matter. We have all heard nightmare stories of knife collections being stolen, either from the collector’s home or car.
I know the last thing folks want to pay for is more insurance, but if you were to need it- you’ll wish you had it. And, while I am not an insurance expert, I know that most homeowner’s policies do not cover valuables unless they are within the limits, or are scheduled in the policy, and even then probably won’t cover the knives when off the property.
Here’s what I found that may be helpful-
In most cases, your homeowners’ is designed to cover personal property and is not nearly enough to protect your collection. Homeowners insurance typically:
- Limit contents coverage to a percent of the total value of your home (50 – 70%)
- Limit the amount they’ll pay for theft of valuable items, like collectibles
- Not cover losses due to flood, hurricane and earthquake
- Be based on actual cash value rather than the collectible value of the item(s)
- Require you to schedule all items individually
Collectibles Insurance MythBusters:
- Insurance Myth: My collection is covered by my homeowners’ insurance.
The FACTS: In most cases, your homeowners’ is designed to cover personal property and is not nearly enough to protect your collection.
- Insurance Myth: No insurance policy would cover my unique collection.
The FACTS: Collectibles Insurance Services, LLC covers most types of collections for a wide range of losses, including traveling to and from shows.
- Insurance Myth: I’ll have to itemize every item in my collection and get it appraised to get insurance.
The FACTS: No appraisals are necessary. You estimate the value of your collection and determine the amount of insurance. Although an inventory is not always required at the time of application to purchase insurance, Collectibles Insurance Services strongly recommends its customers maintain an inventory to streamline, provide proof, and expedite claims in the event of a loss.
- Insurance Myth: Insuring my collection will cost me a fortune.
The FACTS: A collectibles policy is typically less costly than scheduling items on your homeowners insurance.
And while this information was taken from the insurance company I use, I encourage you to check it out for yourself. There are firms out there that specialize in collectibles.