People who love collecting can be found at the markets. People who do this don't have "pack rat fever" and save things just to have them. Instead, they choose to get into a certain collectibles market because it is fun and rewarding for them. People seem to collect almost anything, like teddy bears, coins, stamps, advertising memorabilia, books, comic books, sports memorabilia, vinyl records, and so on. But they all have one thing in common: they are all very passionate about their hobby and the things they collect.
But what if something unexpected happens, like a fire or a natural disaster? Collectibles Insurance Services, LLC is a unique insurance company that can give them peace of mind and, most importantly, insurance for their valuables.
I talked to Dan Walker and Debbie Spilman of Collectibles Insurance Services, LLC about collecting and why it's important to have insurance on your treasured items.
"Some people may think that their homeowners insurance covers their collectibles, but most homeowners policies are meant to cover personal property and are not nearly enough to protect your treasured collectibles," said Dan. "They may limit the amount you can collect to a certain percentage of the total value of your home. They may also limit the amount they will pay if valuable things like silver, crystal, guns, stamps, and paper documents are stolen. Finally, they may be based on the actual cash value instead of the collectible or replacement value."
Collectibles Insurance Services (www.collectinsure.com) is different from a typical homeowner's insurance policy because all they do is insure collectibles. The service can insure a collection of stamps, advertising memorabilia, sports cards, vinyl records, antique tools, vintage clothing, trains, toys, weapons (guns, knives, and swords), entertainment memorabilia, and much more (see the website for a complete list and exclusions of what they insure).
Dan said, "Most homeowner's insurance policies don't cover collectibles. We write policies just for a person's collectibles, whether it's a collection of rare books, stamps, coins, sports cards, vinyl records, or any of the other collectibles we see every day."
A collection's value is up to the person who owns it, and figuring out how much it's worth depends on a lot of different factors and research.
"We strongly tell prospects not to put too much value on their collections. We can't cover "emotional value," but we can cover a wide range of collectibles. We ask that people keep track of what they have bought and how much they paid for it. Having proof is very helpful, so take pictures or video of the collection. Validation is an important element. Don't buy too much insurance, and if you need to, get another opinion "detailed Debbie.
How can someone figure out how much their collection or collectibles are worth?
"Price guides are great, but they are only one of the ways to figure out how much something is worth," Dan said. "Replacement value is the price that a knowledgeable buyer would pay for an item from a knowledgeable seller. It is an agreed-upon price between two knowledgeable people in a sale. For insurance purposes, you should put a fair price on your collectibles."
"The process of figuring out how much something is worth could also be helped by a professional appraisal (though this isn't always necessary), professional consensus, price guide values, what the collectibles might be selling for on the market at the time, and our own resources and knowledge. Since no two collections are the same, all of these things can help people figure out how much something is worth. We also keep a number of resources on file and have a list of references on our website. These include valuation aides, inventory aides, and dealers who can help people figure out how much their collections are worth so they can write a policy "said Dan.
Debbie explains that the type of resources used to value a collection depends on the items in it:
"In the process, we refer to many places, such as Kovels.com, the American Stamp Dealers Association, Price Miner, Antique Trader, Beckett.com, CBGXtra.com (for comic book collections), collect.com, Goldmine publications, Military Trader, trains.com, and a number of other sites, depending on the type of collectible."
I asked about insurance when you move things, whether it's across the street or across the country. Doesn't the moving company cover that?
Debbie explained, "It's much harder to file a claim with them because the moving companies would need a lot more proof to back up a claim if something broke or something else happened." "Again, a key part of settling a claim is making sure how much the collectibles are worth."
A myth about insurance for collectibles is that each item in the collection needs to be listed and given a professional value.
"There is no need for evaluations. You figure out how much insurance to buy based on how much you think your collection is worth "detailed Dan. "An inventory isn't always needed when you apply for insurance, but Collectibles Insurance Services strongly advises its customers to keep one so that claims can be made quickly, easily, and with proof in the event of a loss."
A second myth about insuring collectibles is that the price would be too high for most people to pay.
"Most of the time, a collectibles policy is cheaper than adding items to your homeowner's insurance," said Dan. "People shouldn't let the price of insurance stop them from insuring their collections. The items are valuable to the hobbyist or collector, and our rates are reasonable and won't break the bank. From autographs to Zippos and everything in between, we talk about it all. And the companies that Collectibles Insurance Services works with are rated A or better."
It is nice to know that getting insurance for your collection is not as hard as you might think. The process isn't as hard as it seems, and it's comforting to know that there are professionals trained in this field and a company that specialises in just this kind of insurance.
