While quarantined during Covid-19, many collectors took the opportunity to focus on their collections. Some purchased additional treasures, while others sold pieces, they were less attached to. An article in Smithsonian magazine stated that during uncertain times (like the pandemic), collecting brings people joy. (1) Whether you collect fine art, sports memorabilia, watches, antiques or wine, your possessions need expert valuables and collections insurance protection.
The Value of Collections: Monetary & Emotional
Some collectors dedicate years of their lives to building, curating and managing their collections. Avid collectors feel an emotional tie to their treasured pieces as they represent a reflection of their own unique style and interests. Some collectors’ items have been passed down through generations, and others are procured with the intent of creating new family heirlooms and traditions. Others have formed an emotional connection to their collection because it reminds them of a treasured memory, trip or event in their lives. It’s often the emotional value of a collection, rather than its actual cash value that holds more significance for the owner.
While the sentimental value of a collection is important to its curator, collections often have a significant monetary value as well. A collection may even be worth more than the home that holds it. Many accomplished individuals consider their collections part of their wealth strategy. Statista reports that,
“19% of wealthy Americans surveyed stated that collectibles are a safe asset that will hold their value.” (2)
Wine collections, paintings by renowned artists, Chinese porcelain, and antiques can appraise in the millions of dollars. However, it’s not just traditional collectibles capable of holding substantial value. “In January 2021, the rapper, Logic, paid $183,812 for a rare Pokémon card. And in 2014, a 1938 copy of Action Comics #1 comic book sold for $3.21 million on eBay.” (3) What a person collects is a reflection of their own creativity and each collection is unique. Whether your personal collection is worth $20,000 or $2 million, has sentimental or cash value or both, it’s special to you and should be safeguarded by custom collections and valuables insurance.
Will My Homeowners’ Insurance Protect My Collection?
High Value Homeowners’ insurance protects your home and its contents from many different types of losses. Homeowners’ insurance helps cover common losses such as fire and weather-related damage. However, most homeowners’ insurance policies limit or exclude coverage for artwork and other collectibles. So, if your dog chews items of your sports memorabilia collection including your autographed Ted Williams baseball and signed Tom Brady football, your homeowners’ insurance most likely will not reimburse you for the full appraised value of your items. Only valuables and collections insurance protects from a range of accidental losses that homeowners’ insurance may not, such as losing a piece of jewelry while on vacation or loss of a piece of artwork while in transit.
Collections & Valuables Insurance Basics
Due to the limitations regarding collections with homeowners’ coverage, McSweeney & Ricci’s Private Client Group recommends collectors purchase separate collections and valuables insurance. Collections and valuables insurance protects your special possessions from a broad range of risks. A few of the losses that collections and valuables insurance safeguards your treasured items from include:
- Accidental Breakage
- Theft
- Flood
- Damage occurring in transit, during repair, while being restored or while on exhibit at a museum or an event
- Mysterious disappearance
- Spoilage
- Fire
- Natural Disasters
Our personal risk professionals work with you to custom-tailor an insurance plan for your individual needs and collection. Our team will offer advice on proper storage, inventory management, and will provide guidance on how to avoid loss. We’ve partnered with a suite of premium insurers (Chubb, Pure, Cincinnati, Berkley One, Hanover Prestige, and Vault) to offer superior protection for any type of collection.
Your customized collections and valuables policy can include:
Agreed Value: From the beginning, we’ll help determine the value of your items. After a total loss, you’re reimbursed 100% of that agreed value as a cash settlement. Your special treasures are insured for an agreed fixed amount without depreciation.
Coverage for Newly Acquired Items: For an existing itemized collection, this coverage provides replacement cost coverage on any newly acquired items. So, if while traveling in Europe you find the rare coin you’ve been searching for, you have 90 days to add it to your coverage schedule.
Protection from Market Increases: if the market value of your items or collection increases above your coverage amount at the time you have a loss, you’ll receive up to 150% of the scheduled value.
Worldwide Protection: The treasures on your policy are protected wherever they are located anywhere in the world.
Flexible Coverage: You select the best coverage for your specific collection. Choose itemized for individual items or blanket coverage for a large collection of several items.
Mechanical Breakdown: Reimburses you for your wine collection if it becomes damaged after a mechanical breakdown or loss of utility service.
Insurance Protection as Unique as Your Collection
Your treasured possessions deserve protection as unique as they are. Collectors need expert guidance to manage the risks associated with their particular collections. Wine collectors need assistance with inventory and proper storage techniques, while art collectors are concerned with the provenance of their pieces and proper installation. Both wine and art collectors need guidance to avoid theft and protection from weather-related damage and catastrophic events.
The Risk Managers in McSweeney & Ricci’s Private Client Group work with you to ensure proper coverage is in place for your individual collection based upon its unique needs. Our premium partners Chubb, Pure, Cincinnati, Hanover Prestige, Berkley One, Hagerty and Vault specialize in protecting high-net-worth individuals and their collections. Our professional advisors will offer guidance to help you with caring for your collection, advice about transporting, storing and displaying your collection and offer solutions to help you minimize risk. We offer concierge-level service and a dedicated claims department to ensure your collections and valuables are fully protected. Since 1964, McSweeney & Ricci has protected thousands of successful individuals and families from Marshfield, Weston, throughout Boston and New England including Greenwich, Connecticut and all over the United States.
For more information on Collections & Valuables Insurance contact the risk specialists in McSweeney & Ricci’s Private Client Group by calling (844) 501-1361 or request a complimentary quote on our website.
Sources:
2) Wealthy Americans – reasons for owning collectibles, 2013 | Statista
3) The Best Collectibles Insurance of 2021 (investopedia.com)
4) Love Your Collection/Pure Insurance
5) Valuables Insurance: Your Personal Collections/Chubb