Home Insurance for Collectors
Collections can be a lifetime hobby perhaps because it’s a passion or you’ve created a small fortune. Either way, after all the care and effort you have put into your collection, it’s only right you purchase the correct insurance. A collectors insurance policy will cater to your needs and make sure that if anything was to get damaged and needed to be replaced, you could easily claim for the monetary value to do so. Whether your collection is proudly placed at home or you take your collection out on the road to exhibitions, there are varying levels of cover for you to choose from.
In this guide:
- What is collectors insurance?
- Should I purchase a specialist policy for my collection?
- Getting your collection valued
- Protecting your collection and saving money
Collectors’ insurance is specialist insurance to cover and protect collections. In the event that anything in your collection is damaged, stolen or lost, a collectors’ insurance policy will cover the costs to replace some or all of your collection.
The type of collections included in collectors insurance include:
- Sports memorabilia
There are a variety of policy options depending on your collection and how much it is worth. You can either use your existing home insurance policy or find cover with a specialist insurer.
Using your existing home insurance policy – if you have a small collection, you can insure it on your regular home insurance contents policy. This would allow you to make a claim if your collection was damaged by:
If your collection is worth no more than £1000, you’ll just need to add the estimated value of your collection to your home contents insurance policy. But if you have one item that is worth £1000 or more, it will need to be added as a separate high-value item on your policy.
For an additional cost you can add personal possessions cover to make sure your items are covered outside the home, for example if you take them to an exhibition. Additionally, you will also need to add accidental damage cover to ensure your insurer will pick up the cost if your items are damaged in an unexpected and unintentional event.
Speciality insurance company – if you have a larger more expensive collection that includes rare, unique items, it’s a good idea to look for a separate policy with a specialist insurance company. This policy will be focused on what you have and will potentially be more flexible.
You will be covered for damaged caused by fire, flood and theft, the same as your home insurance policy but you may have the added bonus of accidental damage being included as part of the policy.
For an additional cost, you may also be able to add cover for very specific circumstances such as the emergency evacuation of your collection. This more specialist policy will most likely not need you to list every item instead you will be covered for the total value.
Your insurance cover is very much dependent on how much your collection is worth. With this in mind, it’s important you get your collection properly valued. If it’s valued incorrectly you could risk not getting enough money from your insurer to cover the cost of any damage or theft, or you could be paying an extremely high premium for a collection that is not worth as much as you think.
Always use an expert in your field of collection, an auction house or research any possible organisations that offer a valuation service, such as the Royal Mint who offer an online coin valuation service.
Your collection can also increase or decrease in value over time so it’s important to get your collection re-evaluated every few years and to update your policy. Additionally, to get the best valuation possible, it’s also a good idea to get more than one valuation, you can never have too many expert opinions!
Keep your items safe – make sure your collection is kept in a safe place in your home. If you are the victim of theft, your insurer may reject a claim if there is no sign of a break-in or your items were not seen to be safe and secure. Your items will most likely not be covered against wear and tear so it’s also important you consider how they are kept and maintained.
Updating your policy – it’s always important to update your policy whenever there are new items added to your collection that will increase the value of the collection.
Home insurance vs specialist policy – claiming on a collectors’ policy instead of your home insurance policy could be more cost-effective. Claiming on your home insurance will increase your premium and break any no claims bonus you have acquired.