How to Insure Collectibles

Most people think stamps or baseball cards when they think of collections. But the items people collect are as varied as the people who collect them. Think salt and pepper shakers, snow globes and even refrigerator magnets. All of these things are valuable to someone, and, if they have value, then they are insurable. Read on for tips on how to insure your collection.

Difficulty:

Moderate

Instructions

Things You'll Need

• Inventory list of your collectibles
• Current appraisal
• Sales receipts
• Photos and descriptions of your collectibles

1. Buy additional insurance for your collection, as your homeowners policy probably does not provide full coverage. Remember that the collection you display in your den may be worth more than the rest of your belongings.

2. Review the value of your collection on a regular basis, and adjust your coverage as needed. Three to five years is a good rule of thumb.

3. Take out a policy on items you collect for sentimental value as well as those you collect for investment purposes. Insurance companies will pay towards restoration if a covered item, such as Aunt Flossie's Victorian era vase, is damaged.

4. List all items separately on the policy, so that you get the full value for each one if only a few are damaged or stolen.

5. Check insurance policies before you travel in case you find an item to add to your collection while away. If you already have similar items covered, the company may insure the new items until you can add them to the policy.

6. Make sure any insurance company you are considering is classified as "admitted." An admitted company is one that is licensed by, and is subject to review and approval by, a state's insurance department. If an admitted company gets in major financial trouble, the state insurance department may take over operations and pay claims from a guaranty fund, minimizing any loss to policyholders.

7. Assign a number to each of your items when taking inventory so missing items can be readily identified. That way, you can easily tell what is missing if someone breaks into your house and helps themselves to some of your prized possessions. Put the assigned number on the sales receipt to make it easier to find when you need it.

Tips & Warnings

• Consider having your collection appraised. You may be surprised how much it's really worth.

• Make sure the policy includes coverage against theft, vandalism, accidental breakage and natural disasters. It should also keep up with inflation.