Do I Need to Buy Extra Coverage for My Collectibles on My Home Insurance Policy?

You may need to purchase a separate insurance policy for your collectibles if the value of your collection surpasses the coverage limits of your current homeowners or renters insurance. Collectibles insurance can cover items such as coins, trading cards, or works of art. Your homeowner's policy may not always provide full coverage for these items, and some insurers may have a sub-limit that applies in the event of a loss. To insure works of art and collectibles at their full value, you can add them as an endorsement or additional clause to your policy for homeowners, renters, condominiums or manufactured homes.

Collectibles insurance policies usually offer more extensive protection than the personal property coverage of home insurance. For instance, they can pay for lost items and cover losses caused by floods and natural disasters. Some policies also cover items that are damaged or lost during transportation, which is a valuable feature when you're traveling to trade shows or buying new items online. Optional coverage is also available to protect collectibles found in a public warehouse.

Under a collectibles insurance plan, the insurance company typically provides coverage at an agreed value, which will often differ from the immediate cash value of your collector's item. Your insurance plan may require you to notify your insurer if you purchase an expensive collector's item and want to quickly add it to your plan. Other insurers that offer protection for high-end works of art and other valuable collections include AXA Art Insurance Co. Unfortunately, home insurance policies often have sub-limits for each category.

Because you're insuring a collector's item whose value will, in theory, increase over time, most insurers don't reduce the payment of the agreed value based on depreciation. For example, Collectibles Insurance Services, LLC specializes in all types of products, from vintage teddy bears to vintage firearm collections, and is a popular insurer among eBay collectors. Some insurers don't have a coverage time limit for items that are automatically added to your policy. Your homeowners, renters, condo, or mobile home insurance policy may cover the full value of your items, but it all depends on the value and type of loss.

If you're covered, your insurer can reimburse you for the cost of the repair or, if it's lost or stolen, the cost of the replacement based on your insurer's assessment. If you don't meet the insurance plan's requirements, you may not be eligible to file an insurance claim. A standard home insurance policy includes personal property coverage which covers a wide range of items such as clothing, electronics and furniture should they be destroyed by a covered loss such as a fire. For example, if you lose a collector coin while traveling to a trade show, your standard home insurance policy won't cover it but the scheduled property coverage will.

If you need to file an insurance claim it's best to understand what your insurer requires as justification before the loss occurs. If you already have an insurance policy for condominiums homes or renters talk to your agent to add collectibles insurance to your coverage.