When Your Hobby Turns into an Insurable Collection

Some of us have collections that may go back years, even into our childhoods. For some, they may involve Barbie Dolls or Matchbox cars. Others may have started collecting pennies, which eventually turned into more extensive coin collections. Some people have stamp collections while others may collect art, jewelry or antiques. Collections can bring us joy, especially when we find a piece to add to our collection for which we’ve been searching.

While some collections main value is in the pleasure they provide for us, many can grow significantly in value through the years. We’ve all heard stories of that rare coin or baseball card that was discovered in an attic worth tens of thousands of dollars. But collections can grow in value simply through sheer volume. What some may not realize is that there may be limits on how much a homeowners’ insurance policy will cover when it comes to collectible, and some collectibles, like art, may not be covered at all. What steps should you take to make sure you have appropriate coverage for your collection?

  1. Review your homeowners’ insurance policy. It is likely non-household items like collectibles may have limits on coverage, perhaps as little as $500. If your collection is worth more, you may want to pursue additional coverage.
  2. Take inventory of your collection. List every item of value in your collection and include pictures. Include dates it was purchased, how much you paid for it and include any receipts you may have. Keep this inventory maintained and secure outside of the home. This inventory can become invaluable in an insurance claim due to a loss.
  3. Get a professional appraisal. If your collection warrants it, have it professionally appraised and include that appraisal with your inventory list.
  4. Determine whether you may need additional insurance. If the value of your collection exceeds that provided by your homeowners’ insurance policy, you may want to consider an increase in coverage. If your collection has exceptional value, you may want to consider a separate policy to cover it against a loss.

Like the value of your home, a collection may increase over the years to outgrow its coverage. It is why an occasional homeowners’ insurance review is so valuable. Contact one of our independent homeowners’ insurance agents for a no-obligation review today. You may have years invested in your collection. Make sure it is properly protected.