4 Steps to Insuring Collectibles & High-Value Items

Your home may be insured, but do you know whether your insurance covers everything in your home? Depending upon your policy, one or more of these items may be excluded—or only covered up to a certain amount:

• Artwork
• Cameras and equipment
• Collectibles (ex. cards, coins, stamps, valuable papers)
• Firearms
• Furs
• Jewelry
• Silverware

FBI statistics show that a burglary occurs every 48 seconds. Fire departments respond to more than 1.3 million fires each year. Both these sobering statistics highlight the need to protect rare, expensive, or collectible items.

While your homeowners insurance policy protects against loss, theft, vandalism, and other perils, that coverage is limited or nonexistent for many valuable items. If a $5,000 engagement ring is stolen and coverage is limited to $1,500, then $1,500 is the most an insurer will pay.

The good news is that it’s easy to protect valuables and collectibles. This additional protection usually doesn’t cost much, either, depending upon the item’s value. A rider or floater, which is an add-on to your existing policy, can protect your investment fully.

The process is simpler than you may think. Here’s a four-step guide to appraising and insuring collectibles.

Step 1: Review Your Homeowners Insurance Policy

High-value items like jewelry, fine art, heirlooms, and other collectibles are typically listed in their own section on a standard homeowners insurance policy. Review this information with your insurance broker or agent to answer these three important questions:

• What is the collectibles limit in your homeowners insurance policy? Standard limits for jewelry and other high-value items are typically low. For instance, jewelry might be covered at $1,000 – $2,000 per piece, with a coverage limit of $5,000 per incident (if multiple items are stolen, damaged, or lost).
• How much do you estimate your collection to be worth? Use any information you’ve received or inherited, including any receipts and estimates, to get a general idea of your collection’s monetary value. (More on this below.)
• Does the amount listed in your policy cover your collection’s estimated worth? Note the estimated amount your insurance rider will need to cover, and move on to the next step.

Step 2: Create an Inventory of High-Value Items

Make a list of each item in your collection, and note the purchase date, amount paid, and serial number. Take a picture of each piece. Gather receipts or past appraisal documentation you’ve inherited, if applicable.

Inventory apps are available if you find it easier to organize this data on your mobile device.

For more details on creating a general home inventory, read our how-to guide.

Step 3: Find Out What It’s Worth

Having your collectibles appraised will help you back up your claim in the event of a loss. It’s especially important to get a formal appraisal if your collection includes items that are handmade, vintage or specialized, or if you know your collection is worth more than $2,000.