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Monday, October 5, 2009

Strange Type of Insurance - Collectibles Insurance


Everybody met someone who ever collected something. Most likely all those reading this will have started a collection of one sort or another in their life time. Generally, after a certain period of time, these valued treasures have been put away or just disposed of.

For sure, there are those among us that have never given up this sometimes strange habit and have turned it into a lifelong hobby There is, however, a certain type of collectors, who have taken this passion to a higher level and have diversified their portfolios by investing in valuable coins or stamps.

So, who needs a special cover? Think about this: if you have standard homeowner insurance, it is probably good enough for your every day household requirements However, collections of top value need to be approached differently. Collections of low value might be covered by your existing policy, but successful claims to policy providers have a high percentage of failure. The majority of homeowner policies will normally cover just the material cost and not its perceived value. It is relatively simple to claim for a damaged front door or smashed window, but try claiming for a priceless Blue Mauritius stamp.

So, Mister Collector, what should you do if you have a stamp or coin collection that is worth more than the house that it is kept in? Are you having sleepless nights worrying about its safety? Luckily, an simple answer is at hand, with specialist insurance policies now available just for these kinds of collections. AIG and Allianz are but two of many insurance companies that offer specialist policies for valuable collections.

Being a devoted collector, it is most likely you will choose an 'all risk' policy which will insure your valuables against everything from fire to nuclear attack to 'mysterious disappearance' Mysterious disappearance cover is provided for in the Fireman's Fund policy. Most policies cover travel and transportation so you don't have to worry if you have to travel to the other side of the world to collect or deliver your newest additions.

Since collections tend to increase in size and value over the years, insurance policy writers have included this in their policies as a way of attracting customers. You can simply phone your insurer to inform them that you have invested in another item and this would be added to your policy immediatelly. You can even do this before you go to collect your new piece so that it is insured before you even get your hands on it.

Nothing can replace sentimental value in collection built up over many years.

Nevertheless, the pain can be lessened somewhat, if you have adequate insurance cover in place for the full value of the collection.

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