Have You Ever Thought of Insuring Your Collectibles?

lornemarr By lornemarr, 12th Dec 2012 | Follow this author | RSS Feed | Short URL http://nut.bz/w0q9xyzj/
Posted in Wikinut>Money>Insurance

Many people would like to protect almost everything they own. Collectibles are often neglected and this guide shows what to do to get a proper insurance policy.

Getting everything covered

Many people buy a house and then they hurry to get a good insurance policy. But when they own a precious collection, which can be in some cases of the same worth as their house, it happens quite often that they put it into a safe and lock it. Not speaking about various collections of images, or signed CDs of their favorite band(s) - such things usually end up in a glass cabinet. Why is it so?

If you are a zealous collector, you should think about some kind of a coverage. The benefit money will probably not be your motivation, since the amount will not be huge, but still, you can earn at least something. The most important thing to do is to insure your collection(s) properly. Let's take a closer look at the whole procedure.

The basic difference between a house, or any property and collectibles is the measurability of worth. The conventional insurance types cover the first, while the latter is covered by special insurance policies, which have separate rules. Collectibles belong to items of intrinsic value and therefore it is necessary to create a collectibles insurance plan. And such plans are not exactly widespread, but there are some companies in Canada providing this type of insurance.

I am sure you have already asked yourself the question how much would you have to pay for a cost evaluation done by an expert. Well, you can actually avoid paying a large sum of money by evaluating the collection without being helped by a professional. Appraising the things correctly (forget about any exaggeration) will help you get your money back, in case something happens. The insurance companies accept this type of evaluation, provided it is documented. A good means of achieving it is getting in touch with other collectors.

Another important step is to be informed about the policy. There are various types of them on the market. The best one is the so called all-risk policy - it covers not only the common situations, like thievery, fire, or flood, but also destruction and deterioration of your collection. With this step is connected also the necessity of documenting the collectibles. A visual record together with the complete inventory listing all pieces is a must.

My last advice is that you should contact a licensed insurance broker. That is the best way how to get all of your questions answered and get the most suitable insurance policy. More information can be found on Lorne Marr slideshare.

Tags

Collectibles, Insurance Policies, Rules

Meet the author

author avatar lornemarr
Toronto life insurance broker, financial advisor and martial arts enthusiast.

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