Insuring Your Collectibles

Collecting vintage items is a growing hobby. Collections come in all shapes and sizes: baseball cards, Depression glass, dolls, cars and even postcards. Sometimes, collectors simply love what they collect, without regard to its value. However, many collections are worth a significant amount of money and may be worth more in the future.

Personally, I collect Depression glass. This is the mass-produced glass of the 20s and 30s that was often given away in bags of oatmeal and at gas stations. I have been collecting for over 20 years and not only has the size of my collection grown but its value has grown as well.

If you have a collection that is worth more than a few hundred dollars, it's time to think about insuring it. Your first reaction might be that you think your house insurance covers everything in the house. Almost all house insurance policies, however, exclude anything other than regular household items. Investments such as collectibles, coins and artwork are not covered and must be insured separately.

The first step in insuring your collection is to value it. For collectibles that have a ready market- for example, on eBay- there may be easily-obtained values for each piece in the collection. Some collections, however, require an appraiser to properly value them. Find an appraiser who deals in your particular type of collection regularly. If they're simply going to look up values in a book, you can do that just as easily on your own. You need an appraiser who is fluent in the area and understands not only today's value of your collection but what is likely to happen to the value in the future.

Once you have a value for your collectibles, you can start looking for insurance. It may be as simple as adding a rider to your existing policy to cover the specific collection, so start by speaking with your current insurance company. This is likely to be the least-expensive route for coverage. Very valuable collections may require specialized insurance coverage and there are companies out there that provide this type of insurance if your current company does not.

Regardless of the insurance coverage you obtain for your collection, be sure to read the policy carefully so that you understand which losses are insurable and which are not. For example, many policies exclude coverage when your collection is outside the home. If you take your collectibles to shows or lend them to museums or other exhibitions, you may find that they are not covered. If this situation applies to you, choose a policy that covers the items regardless of their location.

When you have obtained coverage, protect yourself by documenting and photographing every piece. Keep the documentation along with a copy of the appraisal in your safety deposit box at the bank or another safe location out of the house. In case of an insurance claim, the insurance company will want proof of the value of the collection. The more documentation you have, the easier it will be to file a successful claim.

Protecting your collectibles is every bit as important as insuring other valuable assets. If you think that your collection may be worth something, take some time to assess and protect its value.

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