Unexpected Collectors: Protecting Your Passion
What You Love Accumulates
You may not have started out with a plan to grow a collection. Maybe you’re a sports fan, and that one signed jersey turned into a room that looks like a museum dedicated to your favorite team. Maybe you’re a person who didn’t think you were an art person but found a piece that spoke to you, and now your home is a gallery. Or maybe you simply inherited a collection of coins that you can’t think of parting with because sentimental value means more to you than appraised value.
It honestly doesn’t matter how or why you acquired the high-value items that fill your home, storage unit, or safe. What matters is that a homeowners policy is not made to handle, value, and cover valuable collections. Standard homeowners policies often contain limits that are far short of the item's actual value.
What, then, is the savvy collector to do? There are typically two options that you can take depending on your situation.
High-Value Policy
Many companies offer specialized policies to cover collections or groupings of high-value items, such as jewelry, art, firearms, coins, and more. These policies are known under various names, such as Valuable Item Coverage, Valuable Articles Insurance, and others.
These policies vary by company, but they often offer coverage based on the appraised value of your valuables, either individually or as a blanket amount. Your agent will work with you to ensure the items are added to the policy and that the amount is based on actual value, not a limit, giving you real protection in the event of a loss.
Scheduled Personal Property
The other primary way to cover high-value items is through your homeowners policy. Instead of lumping these prized possessions in with the rest of your belongings, “scheduling” them means listing them individually on the same policy to reflect their true value.
Items should be appraised and added one by one so that the policy can accurately cover them. Scheduling gives a collector a lot of flexibility, letting them add only items from a collection, a mix of valuables, or even just a few that matter the most, such as wedding rings or family heirlooms.
Most homeowners policies include this option, though the details and how it works depend on the company.
What is Right For You?
Every collector is different, with different items, motivations, and circumstances. The best way to discover how your valuables should be protected is to schedule (no pun intended) a chat with your insurance agent. A conversation about what your collection looks like, what your needs really are, and what your policy already does is necessary to see which option is best for you.
This content is from sources believed to be accurate and is for general information only, not tax or legal advice. Consult appropriate professionals for your individual situation. Copyright FMG Suite.
