Forget your homeowner’s policy. Here’s the fine arts coverage that actually protects your antique map collection.
The Water Stain and the Worthless Rider
I owned a valuable collection of 17th-century maps, which I thought was protected by a “valuables” rider on my homeowner’s insurance policy. A slow leak from an upstairs bathroom caused a water stain on my most prized map, reducing its value by 80%. My homeowner’s insurer paid out a tiny fraction of the loss. I learned that a standard policy only covers for outright destruction. A true fine arts policy, however, covers “depreciation in value.” It would have paid me for the lost value of the map, not just its replacement cost, which was impossible.
Stop chasing more specimens. Chase a solid agreed value policy for your meteorite collection instead.
The Meteorite and the Market Value
I was obsessed with growing my meteorite collection, constantly chasing the next rare specimen. I insured it under a standard policy based on what I paid for each piece. Then, a fire destroyed part of my collection. The insurer wanted to pay me based on the purchase price, but the market value of those specific meteorites had skyrocketed since I bought them. I was underinsured. I should have been chasing a better policy, not just more rocks. An “agreed value” policy, where the insurer agrees on the value upfront, would have protected my collection’s current worth.
The hidden truth about insuring a collection of vintage scientific instruments that museums won’t admit.
The Delicate Device and the Denial
I loaned my collection of rare 19th-century scientific instruments to a local university museum. They provided me with a certificate of insurance, and I felt secure. A janitor accidentally knocked over a display case, damaging a delicate brass astrolabe. The museum’s insurer denied the claim, citing a “fragile items” exclusion in their policy. The hidden truth is that a museum’s general insurance policy is often not designed to cover delicate, unique, or brittle objects. For my loan to be truly safe, I needed to insist on seeing their specific fine arts policy, not just a general liability certificate.
What nobody tells you about the risk of storing a vintage couture collection.
The Moth and the Chanel Suit
I had a small but valuable collection of vintage couture, including a classic Chanel suit from the 1960s. I kept it carefully stored in what I thought was a safe closet. What nobody tells you is that the biggest risk to a textile collection isn’t fire or theft; it’s pests. A single moth infestation, which my homeowner’s policy specifically excluded, silently destroyed the irreplaceable fabric of my Chanel suit. True collections insurance can be endorsed to cover pest damage, a mundane but catastrophic risk that standard policies will never touch.
I spent 20 years collecting political memorabilia. Here’s what I learned about insuring for provenance and value.
The Button and the Backstory
I had two seemingly identical “I Like Ike” campaign buttons from 1952. One was a common variety worth $10. The other had been personally worn by Dwight D. Eisenhower himself, a fact I had documented with a photograph and a letter. That one was worth $10,000. When my collection was stolen, the standard insurer wanted to give me $20 for the two buttons. I learned that for collectibles, you aren’t insuring the object; you’re insuring its story. A proper collections policy, backed by appraisals that document provenance, insures the historical value, not just the item itself.
Unpopular opinion: Your bank’s safe deposit box is not insured.
The Flood and the Empty Box
I kept my valuable stamp collection in a safe deposit box at my local bank. I thought it was the safest place possible. Then, a water main broke and flooded the bank’s vault. My entire collection was ruined. I was horrified to learn the truth: the bank is not responsible for the contents of your safe deposit box, and the FDIC does not insure them. The box protects against theft, but not against fire, flood, or other disasters. The only way to protect valuables in a safe deposit box is to have your own, separate collections insurance policy.
90% of mineral collectors don’t understand this about insuring for breakage and fragility.
The Crystal and the Catastrophe
I had a magnificent, large, and incredibly fragile tourmaline crystal specimen, the centerpiece of my mineral collection. My homeowner’s policy had a rider for valuables. While I was cleaning, I accidentally knocked it off its stand, and it shattered into a dozen pieces, completely worthless. My insurer denied the claim. I learned that most standard policies, even with a valuables rider, have a clear exclusion for breakage of fragile items. To be protected, mineral collectors need a specialized fine arts and collectibles policy that specifically removes the breakage exclusion.
This simple, detailed photographic inventory transformed my ability to get insurance.
The Picture and the Policy
I struggled for years to get proper insurance for my diverse collection of antiques. The underwriters were hesitant because my spreadsheet inventory didn’t give them a clear picture of what they were covering. I decided to spend a weekend creating a detailed photographic inventory. I photographed every single item from multiple angles, with a ruler for scale, and linked the photos to my inventory spreadsheet. The moment I sent this professional, visual catalog to the insurance broker, everything changed. The underwriters could see exactly what they were insuring, and I got a comprehensive policy with no problem.
You’re not struggling to insure your collection because of its value. It’s because you have no professional appraisals.
The Value and the Void
I had a significant collection of modern art that I knew was valuable, but I had never paid for professional appraisals. The cost seemed too high. When I tried to get the collection insured, I was repeatedly denied. I thought it was because the value was too high. The real reason was that I had no proof of that value. Insurance companies will not issue a policy based on your “gut feeling.” A professional, written appraisal from a certified expert is the required documentation. Without it, your collection’s value is just an opinion, and they can’t insure an opinion.
Stop buying a standard valuable articles policy. Buy a standalone collections policy from a specialist instead.
The Rider and the Reality
I thought I was being smart by adding a “valuable articles” rider to my homeowner’s policy to cover my comic book collection. Then I had a claim. I discovered the rider had a low per-item limit, a massive deductible, and didn’t cover items in transit. It was a watered-down, inadequate product. I switched to a standalone collections policy from a specialist insurer. The policy was designed specifically for collectibles, with agreed value coverage, no deductible, and worldwide protection. It was a real policy, not just an add-on, and the difference was night and day.
The uncomfortable truth about insuring a collection of ancient coins and currency.
The Coin and the Counterfeit
I collected rare Roman coins. The uncomfortable truth about this hobby is the ever-present risk of forgery. I bought a coin from a reputable dealer that was later discovered to be a sophisticated, modern fake. A standard insurance policy would not cover this loss, as there was no physical damage or theft. To be protected, I would have needed a specific, and very expensive, “defective title” insurance policy. This covers the financial loss if an item you purchased turns out to have a fraudulent history or to be a counterfeit.
Why everything you know about insuring your collection against flood is backwards.
The Water and the Wrong Policy
I live in an area that doesn’t flood, so I never worried about flood insurance for my collection of rare books. This was completely backwards. I learned that 90% of water damage claims are not from natural floods, but from internal sources: a burst pipe, a failed water heater, or an overflowing toilet. My standard homeowner’s policy, and even my fine arts rider, had a specific exclusion for damage from flood and for damage from a sewer or drain backup. I needed a specific water damage endorsement to be covered for the most likely type of disaster.
I tried to claim my stolen collection of antique medical tools on my homeowner’s policy. It was a disaster.
The Scalpel and the Sub-limit
My quirky collection of 19th-century medical tools was my pride and joy. When my house was burglarized, the entire collection was stolen. I filed a claim with my homeowner’s insurance company, thinking I was covered. It was a disaster. They classified my collection under a “tools” or “silverware” sub-limit, which had a maximum payout of only $2,500. The collection was worth over $30,000. I learned that a standard homeowner’s policy is completely inadequate for any kind of specialized collection. I got pennies on the dollar for my loss.
Hot take: Your “priceless” collection is overrated if it’s not insured for an agreed value.
The Price of “Priceless”
Collectors love to call their favorite items “priceless.” It sounds romantic. My hot take is that “priceless” is a synonym for “uninsured.” If you haven’t sat down with an appraiser and an insurance company to put a price on your collection, then in the event of a loss, its value is zero. An “agreed value” policy, where you and the insurer agree on the exact dollar value of each item before the policy is written, is the only way to turn your “priceless” emotional attachment into a concrete, recoverable financial asset.
Most collectors waste hours organizing. Spend an hour getting a professional appraisal instead.
The Catalog and the Cash Value
I spent hundreds of hours meticulously organizing and cataloging my collection. I had spreadsheets, photos, and a perfect storage system. But I never spent the money on a professional appraisal. When a fire destroyed my collection, my beautiful catalog was nice to have, but it didn’t prove the collection’s financial value to the insurance company. They needed a formal, written appraisal from a certified expert. I learned that an hour with a professional appraiser is infinitely more valuable than a hundred hours of organizing. It’s the step that turns your hobby into a tangible asset.
The 5-minute habit that replaced my fear of fire destroying my library of first editions.
The Off-Site Archive
My biggest fear was a fire destroying my library of valuable first edition books, along with all my records of their value. I started a simple 5-minute habit that gave me peace of mind. After I get a new appraisal or add a significant book to my collection, I make a digital copy of the document and upload it to a secure cloud storage account. I also keep one physical copy of my complete inventory and appraisals in a fireproof safe at my office. This off-site backup means that even if the collection is destroyed, my proof of its existence and value will survive.
Your collection’s biggest risk isn’t theft. It’s accidental damage from a water pipe break.
The Drip and the Disaster
Every collector worries about a sophisticated cat burglar stealing their prized possessions. We invest in alarms and locks. But the far more common, and often more destructive, risk is mundane: water. A slow drip from a faulty toilet seal on the floor above, a burst washing machine hose, or a leaking roof can cause catastrophic damage to art, books, or textiles. Statistically, you are far more likely to suffer a major loss from a simple water pipe break than from a thief. Protecting your collection from internal water damage is your most important job.
If you’re loaning items to a museum, and you’re not getting a wall-to-wall insurance certificate from them, you’re already losing.
The Loan and the Loophole
I was so proud when a museum asked to borrow a piece from my collection for an exhibition. They sent me a loan agreement and a certificate of insurance. I signed it without reading the fine print. When the piece was damaged during shipping back to me, the museum’s insurer denied the claim. Their policy only covered the item while it was physically inside the museum. I learned I should have demanded a certificate showing “wall-to-wall” coverage, which insures the item from the moment it leaves my wall until the moment it is safely back on it.
Stop glorifying the “hidden gem” find. Start professionally insuring every piece you acquire.
The Find and the Fire
The thrill of collecting is finding that “hidden gem” for a bargain at a flea market. We glorify the story of the hunt. But the story often ends there. You take your $10 find, which you know is worth $1,000, and you put it on a shelf. You don’t call your insurance agent to add it to your policy. Then a fire or theft occurs, and you’ve lost not just a gem, but a significant asset. A professional collector knows that the hunt is only the first step. The second, more important step is to immediately insure that new asset for its full, appraised value.
The real cost of a “free” verbal appraisal from a friend that nobody calculates until a claim.
The Friendship and the Financial Loss
My friend was an antiques dealer, and he would give me “free” verbal appraisals on pieces in my collection. I used his numbers as the basis for my insurance coverage. After a theft, I filed a claim. The insurance company’s adjuster demanded a formal, written appraisal. My friend’s verbal opinion was inadmissible and worthless. The insurer paid out a much lower value, and our friendship was strained. The real cost of that “free” advice was a massive, uncovered financial loss and a ruined relationship.
What professional dealers do with their inventory insurance that collectors don’t.
The Dealer’s Edge
A collector typically insures their collection with a simple fine arts policy. A professional art or antiques dealer does something different. They have a policy that includes “defective title” coverage. This protects them if they buy a piece that later turns out to be stolen or a forgery. It also covers them for items they have taken “on consignment” from a collector. They understand that their risks are not just about damage or theft, but about the complexities of provenance and ownership in a commercial market.
The myth that your collection is “just stuff” is destroying your family’s inheritance.
The “Stuff” That Was Worth a Fortune
My father had a large collection of old duck decoys that he always referred to as “just my stuff.” He thought of it as a worthless hobby. When he passed away, we were stunned to learn from an appraiser that his collection of “stuff” was actually a major six-figure asset. Because he had never insured it properly, we were now facing a massive estate tax bill and the risk of this valuable, uninsured collection being damaged or stolen. His casual attitude was destroying what could have been a significant inheritance for his family.
I quit hiding the true value of my collection from my insurer, and my peace of mind soared.
The Lie and the Liability
For years, I intentionally under-reported the value of my collection to my insurance agent. I thought I was being clever, saving money on my premium. In reality, I was just buying a worthless policy and living with a constant, low-grade fear of a total loss. I finally decided to come clean. I got a professional appraisal, submitted it to a specialist broker, and bought a policy that covered the collection’s true value. The premium was higher, but my fear disappeared. The peace of mind that comes from being honestly and adequately insured is priceless.
Controversial: Your desire to display your entire collection is holding you back from getting affordable insurance.
The Display and the Denial
You have a magnificent collection, and you want to display every single piece in your home to enjoy it. Here’s the controversial truth: this is making you uninsurable. An insurance underwriter sees a home filled to the brim with valuables as a massive concentration of risk and a magnet for thieves. They would much rather see the bulk of the collection secured in a bank vault or a specialized storage facility, with only a few pieces on display at a time. Your desire to live inside your museum is the very thing preventing you from protecting it.
95% of online advice about protecting valuables ignores the specialized nature of collections insurance. Here’s why.
The General Advice for a Specific Asset
Online articles on “how to protect your valuables” will tell you to get a safe, install an alarm, and maybe add a rider to your homeowner’s policy. This advice completely ignores the unique needs of a true collector. Why? Because specialized collections insurance is a niche product that most people don’t need. The articles are written for a general audience. They don’t mention the need for “agreed value” coverage, breakage waivers for fragile items, or professional appraisals, the very things that are essential for protecting a serious collection.
One small endorsement for “pairs and sets” on my policy protected the value of my antique jewelry collection.
The Earring and the Orphan
I owned a beautiful pair of antique diamond earrings, valued at $10,000 for the pair. I lost one of them. My standard insurance policy offered to pay me only half the value, or $5,000. But the remaining single earring was now worth far less than that on its own. It was an orphan. Luckily, my specialist broker had insisted I add a “pairs and sets” clause to my policy. This meant the insurer had to either pay me for the full value of the pair, or pay to have a replacement for the lost earring custom-made.
The truth about insuring against pest damage for vintage textile collections that storage companies profit from hiding.
The Rug and the Ruse
I placed my collection of valuable antique rugs in a professional, climate-controlled storage facility. The facility’s contract said they were “not responsible for damage.” I assumed that was just legal jargon. The truth is that they profit by putting all the risk on you. When a moth infestation ruined one of my rugs, the storage company pointed to the contract. I learned that I needed my own separate collections insurance policy with a specific endorsement to cover damage from pests, vermin, and insects, a risk that storage companies explicitly refuse to cover.
Stop letting your most valuable assets sit completely uninsured. It’s financial malpractice.
The Uninsured and the Unthinkable
Imagine you had a significant portion of your net worth invested in a single stock, and you had no way to protect it from a market crash. It would be considered financial malpractice. Yet, many collectors have a fortune tied up in their physical collection, and it sits in their home completely uninsured. It is exposed to total loss from fire, theft, or flood every single day. Letting your most valuable tangible assets sit completely unprotected is a reckless financial decision. It is a form of self-inflicted risk that no sound financial advisor would ever condone.
Replace your messy spreadsheet with a professional collections management software. Thank me later.
The Spreadsheet and the Struggle
For years, I managed my collection on a messy, sprawling spreadsheet. It was hard to update, couldn’t store images effectively, and was a nightmare to share with my insurer or appraiser. I finally invested in a professional collections management software. It was a game-changer. Every item now has its own record with photos, appraisal history, provenance, and insurance details. With one click, I can generate a professional report for my insurer. It has transformed my hobby into a professionally managed asset.
The antique arms and armor industry secret that could save you from a massive legal and liability issue.
The Sword and the Lawsuit
I collected antique swords and firearms. I thought of them as historical artifacts. The industry secret that can save you is that in the eyes of the law, you may be the owner of a deadly weapon. If a piece from your collection, even a 300-year-old flintlock pistol, is stolen and used in a crime, you could be named in a liability lawsuit. Collectors in this field need not just property insurance, but significant liability coverage that won’t exclude claims arising from “firearms or weapons.”
Why your traditional valuables policy fails for a collection that is constantly changing.
The Static Policy for a Dynamic Collection
A traditional valuable articles policy is designed for a static collection, like your wedding ring. You insure it once and forget about it. But a true collector’s portfolio is dynamic; you are constantly buying and selling pieces. A standard policy is a nightmare to manage in this environment, requiring you to call your agent with every single transaction. A proper, standalone collections policy is designed for this. It has features like “automatic coverage for new acquisitions,” which protects a new piece for 90 days, giving you time to formally add it to the policy.
I ignored my spouse’s advice to get a separate policy for my fossil collection for years. It cost us a fortune after a small fire.
The Fossil and the Fool
My spouse always urged me to get a separate, specialist insurance policy for my valuable fossil collection. I always said it was too expensive and that our homeowner’s policy would cover it. After a small house fire, the smoke and water damage destroyed several delicate specimens. Our homeowner’s insurer gave us pennies on the dollar for what they called “decorative rocks.” The uncovered loss was tens of thousands of dollars. I was a fool for ignoring my spouse’s advice. That separate policy would have saved us a fortune.
Let’s be honest: You have a small museum in your house, and it needs to be insured like one.
The Home and the Hermitage
You may think of it as your home, but if your walls are covered with valuable art and your shelves are filled with rare collectibles, you are living in a small, private museum. Let’s be honest about that. And a museum has a different set of risks than a regular home. It has a higher concentration of value, a greater risk of theft, and more fragile objects. You can’t protect a museum with a homeowner’s policy. You need to insure your home like what it is: a museum that requires a specialized fine arts and collectibles insurance policy.
87% of collectors get insuring items in transit to a show wrong. Don’t be one of them.
The Show and the Stolen Car
I was so excited to take my best mineral specimens to a big gem and mineral show. I carefully packed them in my car and drove to the event. The night before the show, my car was broken into at the hotel parking lot, and my entire collection was stolen. I was horrified to learn that my standard collections policy did not cover the items while they were in my vehicle or at a temporary location like a show. I needed a specific “in transit” or “off-premises” endorsement to be covered outside my home.
This weird habit of insuring for the “cost to replace,” even if irreplaceable, outperforms everything in a claim.
The Irreplaceable and the Insurance Check
I collect one-of-a-kind folk art sculptures. They are, by definition, irreplaceable. It seems weird to insure them for a “replacement cost.” But this habit has been a lifesaver. Instead of just insuring for the current appraised value, I insure them for the amount it would cost me to go out into the market and find a piece of similar quality, rarity, and importance by the same artist. This “cost to replace” is often higher than the current appraisal. It ensures that if I have a loss, I get a check big enough to actually go out and fill that hole in my collection.
The real reason you can’t get insurance for your occult book collection (hint: it’s not the content, it’s the fire risk).
The Book and the Blaze
I had a fascinating collection of rare, antique books on occult and esoteric subjects. I couldn’t understand why insurers were so hesitant to cover it. I thought they were judging the controversial content. The real reason was much simpler: fire risk. My collection often included books bound with old, dry leather and parchment, and many of my related artifacts included candles, incense, and other flammable materials. The insurance underwriters weren’t worried about demons; they were worried about the very real and high risk of a fire.
Ditch your agent who doesn’t understand your collection. Find a specialist broker who does.
The Agent and the Art Ignoramus
My local insurance agent was great for my car and my business. But when I tried to explain the nuances of my contemporary art collection to him, his eyes glazed over. He didn’t understand the difference between an original and a print, or the importance of provenance. He tried to sell me a standard valuables rider that was completely wrong for my needs. I ditched him and found a specialist fine arts insurance broker. The first time we spoke, she understood my world completely. It was a revelation.
Stop pretending your home security system protects against everything. Get coverage for “mysterious disappearance.”
The Vanishing and the Void in Coverage
My home had a top-of-the-line security system. I felt completely protected from theft. Then, a small, valuable sculpture vanished from a shelf in my study. There was no sign of a break-in. The police were baffled. My insurance company denied my theft claim because I couldn’t prove a burglary had occurred. It was a “mysterious disappearance,” a specific exclusion in most policies. I learned that I needed a special endorsement to cover a loss that I couldn’t explain, because not all disappearances leave a trail.
The 9-word phrase that changed how I think about protecting my tangible assets.
Your collection is a concentration of financial risk.
I used to think of my collection as a source of joy and a fun hobby. My financial advisor said something that changed my entire perspective. He said, “Your collection is a concentration of financial risk.” Those nine words were a wake-up call. It made me realize that having a huge amount of my net worth tied up in physical objects, all stored in one single location, was an incredibly risky financial strategy. It forced me to start treating my collection not as a hobby, but as a major asset that needed professional risk management.
What the big auction houses don’t want you to know about their own insurance coverage and its limitations.
The Gavel and the Gap
When you consign a valuable item to a major auction house, they tell you it’s “fully insured.” What they don’t want you to know is that their insurance is designed to protect them, not you. Their policy might have a massive deductible that they will pass on to you in the event of a small loss. It might also value your item at the “low estimate” until the moment the gavel falls. To be truly protected, you should keep your own insurance policy in place until the sale is complete and the money is in your bank account.
I was today years old when I learned about “defective title” insurance for high-value collectibles.
The Painting and the Past
I bought a beautiful 18th-century painting from a reputable gallery. I had it for years. Then, a family from Europe emerged with proof that the painting had been stolen from their ancestors during World War II. They sued for its return. I was today years old when I learned that a special type of insurance called “defective title” coverage exists for this exact scenario. It would have covered my financial loss and legal fees when it was discovered that I didn’t have clear, legal title to the artwork I had bought in good faith.
Normalize having an annual, professional appraisal of your entire collection.
The Appraisal and the Asset
Many collectors see a professional appraisal as a one-time event, or something you only do when you want to sell. This is a mistake. The market for collectibles can be volatile. An item that was worth $1,000 last year might be worth $10,000 this year. Normalizing an annual professional appraisal is the only way to ensure your insurance coverage keeps pace with your collection’s actual value. It’s a routine check-up that transforms your collection from a static hobby into a managed, properly valued financial asset.
Plot twist: Your biggest enemy isn’t a burglar. It’s your own children accidentally damaging your most valuable piece.
The Toddler and the Tang Dynasty Vase
I had a sophisticated security system and lived in a safe neighborhood. My biggest fear was a professional art thief. The plot twist is that my biggest loss came from my own three-year-old toddler. While playing, she knocked over and shattered a Tang Dynasty vase worth more than my car. My homeowner’s policy did not cover accidental breakage by a family member. A standalone collections policy, however, would have. I learned my biggest risk wasn’t an outside enemy, but a small, unpredictable force I willingly let into my house every day.
The policy endorsement for “newly acquired items” everyone ignores that protects you for 90 days.
The Acquisition and the Accident
I was at an auction and, on an impulse, I bought a valuable painting. I was so excited. On the way home, I was in a minor car accident, and the painting was damaged. I was devastated, thinking it wasn’t insured yet. I was relieved to learn my collections policy had an “automatic coverage for newly acquired items” endorsement. It meant that any new piece I bought was automatically covered for its purchase price for up to 90 days, giving me plenty of time to formally add it to my policy. It’s an essential, but often ignored, protection.
Stop optimizing for a low premium. Optimize for a policy with the fewest exclusions.
The Premium vs. The Promise
When I was first insuring my collection, I was focused on getting the lowest possible premium. I thought I was being a savvy consumer. I was being a foolish one. I ended up with a cheap policy that was full of dangerous exclusions for things like breakage and mysterious disappearance. I learned to stop optimizing for price and start optimizing for coverage. A policy with a slightly higher premium but with very few exclusions is a much better promise of protection. I now look for the broadest coverage, not the cheapest price.
The brutal truth about why your homeowner’s policy will only give you pennies on the dollar for your collection.
The Policy and the Payout
You have a collection of vintage guitars worth $50,000. It’s stolen, and you file a claim against your homeowner’s insurance policy. The brutal truth is that you will be lucky to get a check for $2,500. Why? Because a standard homeowner’s policy has very low sub-limits for specific categories of valuables, like musical instruments, jewelry, or firearms. It is not designed to cover collections. It’s designed to cover your couch and your clothes. Relying on it to protect a valuable collection is a guaranteed path to getting pennies on the dollar.
Throw away your old purchase receipts. A current, professional appraisal is the only thing that matters in a claim.
The Receipt and the Reality
I kept a meticulous file of all the purchase receipts for my collection. I thought this was the perfect way to document its value. After a loss, I learned that my receipts were almost worthless. The insurance company didn’t care what I paid for an item ten years ago. They cared what it was worth on the day of the loss. The only document that proves that is a current, professional appraisal. Throw away the shoebox of old receipts. They prove what you spent, not what it’s worth. An appraisal is the only document that matters.
The 60-second test that reveals if your collection is dangerously underinsured.
The Call That Confirms Your Coverage
To see if your collection is dangerously underinsured, try this 60-second test. First, make a quick, honest estimate of your collection’s total value. Then, call your insurance agent and ask them one question: “What is the total ‘agreed value’ of scheduled fine arts or collectibles on my current policy?” The likely gap between your number and their number will be a shocking, and immediate, revelation. It is the fastest way to understand the size of your uninsured risk.
Why everyone is wrong about how “difficult” it is to insure a unique collection.
The Myth of the Uninsurable
Many collectors with unique or esoteric collections—like antique typewriters or vintage lunchboxes—believe their collection is so weird that it’s uninsurable. This is completely wrong. While a standard, big-name insurer might not know what to do with it, there is a thriving specialty insurance market for every kind of collectible imaginable. The problem isn’t that your collection is difficult to insure. The problem is that you are probably talking to the wrong kind of insurance agent. With a specialist broker, almost any collection can be protected.
Stop asking “how much to add a rider?”. Ask “can I get a standalone, agreed value policy from a specialist carrier?” instead.
The Rider vs. The Real Policy
When a collector first thinks about insurance, they call their agent and ask, “How much to add a rider to my homeowner’s policy?” This is the wrong question. A rider is just an add-on, with limited terms and low limits. The right question to ask is, “Can you get me a quote for a standalone, ‘agreed value’ policy from a specialist fine arts and collectibles insurance carrier?” This question signals that you are a serious collector who needs a real, professional-grade policy, not a flimsy, inadequate endorsement.
The habit of professional, archival storage that I wish I’d started on day one.
The Box and the Breakdown
I used to store my collection of historical documents in regular cardboard boxes in my attic. I thought I was protecting them. I was actually destroying them. The acidic cardboard, the extreme temperature swings, and the humidity in the attic were causing them to yellow and break down. I wish I had started the habit of using professional, archival-quality storage from day one. Acid-free boxes, mylar sleeves, and a climate-controlled environment are not luxuries; they are the essential tools for preserving the very assets you are trying to protect.
Here’s why generic valuables advice is terrible for a collector of animation cels.
The Cel and the Sun
Generic advice for protecting valuables might tell you to display them in a well-lit room. For a collector of original animation cels, this is the worst possible advice. The delicate paints on an animation cel are incredibly sensitive to ultraviolet light. Displaying them in a room with direct sunlight will cause the colors to fade and the cel itself to warp and ripple, destroying its value. A collector of animation cels needs highly specific advice about UV-protective glass and museum-quality lighting, proving that generic advice is useless for a specialized collection.
I’ll say what everyone’s thinking: You’re terrified to even think about what would happen if your collection was destroyed.
The Fear and the File Folder
Let’s be honest. As a passionate collector, the thought of your entire collection being destroyed in a fire or a flood is so horrifying that you actively avoid thinking about it. This fear is paralyzing. It stops you from taking the necessary steps to protect your collection, like getting a professional appraisal or buying the right insurance. But confronting that fear and channeling it into action is the only way to get peace of mind. Creating that professional inventory and buying that policy is the one thing that will allow you to stop being terrified.
The skill of documenting provenance that matters more than the item itself.
The Story Is the Value
I own two nearly identical antique pocket watches. One is worth $200. The other, which I can prove with letters and photographs belonged to a famous author, is worth $20,000. The difference in value is not in the watch; it’s in the story. The skill of documenting an item’s history, or “provenance,” is the most valuable skill a collector can have. A simple file folder with old receipts, letters, and photographs that traces the object’s ownership history can transform an ordinary item into a historically significant—and far more valuable—artifact.
This counterintuitive action of loaning a piece to a museum actually improved its provenance and insured value.
The Museum and the Mark of Importance
I was terrified to loan my best painting to a major museum for an exhibition. It felt like a huge risk. But it was a counterintuitive masterstroke. The fact that the painting was selected for exhibition in a prestigious museum became a key part of its “provenance,” or history. It was a mark of its cultural importance. When it came time to get the painting reappraised, its exhibition history significantly increased its value and, in turn, its insured value. Loaning it out, under a proper insurance agreement, made it a more important and valuable asset.
Why your good intention of “keeping it all together” in one room is actually a massive concentration of risk.
The One-Room Risk
I had a good intention: I converted a spare bedroom into a beautiful library to house my entire rare book collection. I loved being surrounded by all my books. But my insurance agent pointed out that my good intention had created a massive concentration of risk. A single fire or a burst pipe in that one room could wipe out my entire collection in a single event. He advised me to diversify my risk by keeping my most valuable items in a separate, secure location, like a bank vault. It was a less romantic, but much safer, way to protect my assets.
Quit cleaning your delicate antiques yourself. It’s not worth the risk of accidental damage.
The Polish and the Patina
I owned a beautiful antique silver tea set. I thought I was doing the right thing by diligently polishing it myself. I used a standard commercial silver polish. I was horrified to learn from an appraiser that my aggressive cleaning had removed the delicate, original patina, which is a key component of an antique’s value. I had literally polished away thousands of dollars of its worth. I learned to quit cleaning my delicate antiques myself. The risk of using the wrong chemical or technique is too high. It’s a job best left to professional conservators.
The metric everyone tracks (number of pieces) that means absolutely nothing compared to the total insured value.
The Count vs. The Coverage
Collectors love to brag about the number of pieces in their collection. “I have over 500 rare stamps!” they’ll say. This is a vanity metric. The number of items you have is completely irrelevant. The only number that matters is the total “agreed value” of your collection on your insurance policy. You could have one single painting that is worth more than a thousand stamps. Stop tracking the size of your collection and start tracking its total insured value. That is the true measure of your asset.
Stop calling it a “collection.” Call it “a diversified portfolio of alternative tangible assets.”
The Words of an Investor
As long as I called my hobby a “collection,” I treated it like one. I was casual about its financial management. My accountant advised me to change my language. He said, “Stop calling it a collection. It is a diversified portfolio of alternative tangible assets.” That phrase instantly reframed my thinking. A “portfolio” needs to be managed, balanced, and protected. An “asset” has a financial value that needs to be preserved. This simple shift in language forced me to start treating my collection with the seriousness of a real investor.
The decision I made to use a broker who only insures fine art and collectibles that everyone said was unnecessary (but was a game-changer).
The Specialist’s Solution
My regular insurance agent tried his best, but he just didn’t understand my collection. The policies he offered were clunky and expensive. My friends told me hiring a specialist broker was unnecessary. I did it anyway, and it was a game-changer. I found a broker who only worked with collectors. She spoke my language. She understood the importance of “agreed value” and “breakage” coverage. She had access to niche insurance companies I’d never heard of. She got me better coverage for a lower premium. The specialist wasn’t unnecessary; she was essential.
What I learned from my first major damage claim that changed my entire approach to storage and handling.
The Lesson of the Loss
A mover, helping me rearrange my living room, accidentally dropped a heavy sculpture, chipping it badly. Filing the insurance claim was an education. The insurer’s adjuster asked me detailed questions about how the piece was stored, how it was handled, and what my procedures were. The claim was paid, but the process taught me a valuable lesson. I am the custodian of these objects. I completely changed my approach, investing in proper storage materials and establishing strict rules for anyone who handles my collection. The loss became a valuable lesson in professional-level care.
The common mistake of thinking your appraisal is the same as your insured value.
The Appraisal and the Agreement
I got a professional appraisal for my painting that valued it at $50,000. I sent the appraisal to my insurance agent and assumed the painting was now insured for that amount. This is a common and dangerous mistake. The appraisal is just an expert’s opinion of value. It is not an insurance agreement. For the painting to be properly insured, it needs to be listed on a “schedule” with an “agreed value” of $50,000. The appraisal is the justification for the value, but the scheduled agreement is what makes it binding.
PSA: Most “valuables” riders on homeowner’s policies are a scam. Here’s proof of the low sub-limits.
The Rider’s Fine Print
Here’s a public service announcement for anyone who thinks a “valuables rider” on their homeowner’s policy is protecting their collection. It’s mostly a scam. Read the fine print. The rider will have a very low total limit, maybe $10,000. Worse, it will have even lower “per-item” or “per-category” sub-limits. It might cover your whole collection up to $10,000, but only pay a maximum of $1,000 for any single stolen piece of jewelry. It provides a false sense of security while offering very little real financial protection for a serious collection.
The skill of risk management for physical objects that curators should teach but don’t.
The Curator’s Secret
Museum curators have a deep knowledge of art history. But the most important skill they possess is one they rarely teach: the risk management of physical objects. A curator knows how to control a room’s humidity to the exact percentage, how to choose the right archival materials for storage, and how to create a detailed condition report before an object travels. They are professional risk managers for tangible assets. This practical skill of preservation and protection is far more important for a collector to learn than any textbook history.
This 5-minute action of checking your environmental controls (humidity, temp) beats hoping for the best every time.
The Climate of Care
My collection is sensitive to changes in the environment. I used to just hope the conditions in my storage room were stable. I replaced that hope with a simple 5-minute action. I have a small digital hygrometer and thermometer in the room. Every morning, I check the readings and jot them down in a logbook. This habit ensures I am actively monitoring the climate. It allows me to spot a problem with my humidifier or air conditioner long before it can cause damage to my collection. It’s a proactive step that provides immense peace of mind.
Why that big-name insurer is actually doing it wrong for unique, hard-to-value collections.
The Database and the Dilemma
I tried to insure my collection of rare tribal artifacts with a big, famous insurance company. It was a disaster. Their entire system is based on databases of common valuables, like diamonds and Rolex watches. They had no data on my unique items. They couldn’t understand the value and didn’t know how to price the risk. A big-name insurer is great for common items, but they are doing it completely wrong for a specialized collection. You need a niche carrier that employs underwriters who are experts in art and collectibles, not in cars and houses.
Stop waiting for your collection to be “finished” to insure it properly. Start today.
The Unfinished, Uninsured Asset
I always told myself I would get my collection properly insured once it was “finished” or “complete.” This was a dangerous form of procrastination. A collection is never finished. It is a living, growing asset. Every day that you wait, you are leaving a valuable and growing asset completely unprotected. Don’t wait for some imaginary finish line. Start the process today. Get an appraisal for what you have now, and get a proper policy in place. You can always add to it later. An incomplete policy is infinitely better than no policy at all.
The specialist underwriter for collectibles I use that most collectors have never heard of.
The Niche and the Knowledge
After my local agent failed me, I found a specialist broker who introduced me to a world I never knew existed: niche insurance companies that only insure fine art and collectibles. These companies, with names many collectors have never heard of, employ underwriters who are often art history majors and passionate collectors themselves. They understand the market, they appreciate the risks, and they can craft a policy that is perfectly tailored to your collection. They are the secret weapon that professional collectors use to get the best possible coverage.
Your problem exists because you believe your emotional attachment to the items somehow protects them physically.
The Love That Blinds
You love your collection. Each piece has a story and a deep emotional meaning for you. Your problem exists because, on some subconscious level, you believe that this powerful emotional attachment somehow provides a magical shield of protection over the objects themselves. It doesn’t. Your love cannot stop a fire. Your passion cannot prevent a flood. Your emotional connection is real and important, but it is not a substitute for a locked door, a fire extinguisher, and a comprehensive insurance policy.
Delete that collecting app without an exportable, insurance-ready report feature. Your documentation will improve.
The App and the Appraisal
I used a free app on my phone to catalog my collection. It was fun and easy. The problem arose when I needed to get the collection insured. The app had no way to export my data into a professional, clear report that I could give to my broker and appraiser. I had to manually re-enter everything. I deleted that app and switched to a professional collections management software. Now, with one click, I can generate a perfect, insurance-ready report. The ability to export your data is a critical, and often overlooked, feature.
The advice on deductibles for collections I give that makes collectors uncomfortable (it should be high to afford the best coverage).
The Deductible and the Dollar
When insuring a major collection, I give advice that makes many collectors uncomfortable: you should choose the highest deductible you can comfortably afford. A high deductible of several thousand dollars can significantly lower your annual premium. This allows you to afford a much higher overall coverage limit and a policy with fewer exclusions. You’re not insuring for a small, chipped item. You are insuring against a catastrophic, total loss. It’s better to self-insure the small stuff so you can afford the best possible protection for the big disaster.
Why the common fear of appraisal costs is irrational and the real fear of a total, uninsured loss is ignored.
The Price of Proof
Many collectors avoid getting a professional appraisal because they fear the cost, which can be several hundred dollars. This fear is completely irrational. They are focusing on a small, known, and manageable expense. The real, rational fear that they should be focused on is the catastrophic, total loss of their entire uninsured or underinsured collection, which could be a loss of tens or hundreds of thousands of dollars. Fearing the small price of proof while ignoring the massive risk of loss is a classic case of penny wise and pound foolish.
I tried to insure my collection of vintage movie posters with a standard policy so you don’t have to. Here’s what happened with the valuation.
The Poster and the Paper Value
I tried to insure my valuable collection of vintage movie posters with a standard “valuables” rider on my homeowner’s policy. After a water leak destroyed several, I filed a claim. The insurance company’s adjuster offered me the replacement cost of the paper and ink—about $5 each. He said they were just “posters.” He completely ignored their value as rare, collectible works of art. I learned that for a specialized collection, you must have a standalone, “agreed value” policy where the collectible value, not the material value, is established upfront.
The question about “agreed value vs. stated value” that instantly reveals if a broker knows collections insurance.
The Agreement and the Argument
When I’m interviewing an insurance broker, I ask them this one question: “Does this policy offer ‘agreed value’ or ‘stated value’ coverage, and what is the difference?” A broker who knows collectibles will answer instantly. “Agreed value” means the insurer agrees to the appraised value upfront, and will pay that full amount in a total loss, no questions asked. “Stated value” means you state the value, but in a claim, the insurer reserves the right to argue with you and pay out a lower amount. This one question separates the experts from the amateurs.
This old-school method of keeping fireproof copies of your appraisals and inventory off-site beats every cloud solution.
The Safe and the Server
I keep my entire collection inventory, including photos and appraisals, on a secure cloud server. But I also do something old-school. I print one complete copy of everything each year, put it in a folder, and keep it in a fireproof safe at my sister’s house across town. Why? Because in a true, catastrophic disaster like a regional wildfire or a hurricane, the internet and power could be down for weeks. That physical, off-site copy is my ultimate, low-tech backup that ensures my documentation survives even if my house and the local servers are gone.
Stop romanticizing the “thrill of the hunt.” It’s a professional acquisition strategy for a valuable asset portfolio.
The Hunt and the Holding
Collectors love to talk about the “thrill of the hunt”—the excitement of finding a rare piece for a bargain. But if you stop there, you’re just a hobbyist. A professional collector knows the hunt is just the beginning. They see it as an “acquisition strategy” for a “valuable asset portfolio.” This shift in mindset forces them to think about the next, more important steps: how will this new asset be cataloged, conserved, insured, and eventually, passed on or sold? The hunt is the romance; the professional management is the reality.
The principle of “conservation” that guides every storage and handling decision I make.
The First Rule: Do No Harm
The guiding principle for any serious collector should be the same as a doctor’s: first, do no harm. Every decision I make about my collection—from the type of lighting I use in a display case, to the humidity level in my storage room, to the type of gloves I wear when handling an object—is guided by the principle of conservation. My primary job is not to own these objects, but to be their temporary steward and to preserve them for the next generation. This mindset changes everything about how you interact with your collection.
Why the size of your collection is vanity and its total agreed value coverage is sanity.
The Count vs. The Coverage
I know collectors who love to boast about the sheer size of their collection. “I have over 2,000 pieces!” they’ll say with pride. This is a vanity metric. A large collection of low-value items can be worth less than one single masterpiece. The number that represents sanity is the total “agreed value” limit on your insurance policy. That is the true financial measure of your collection. It’s better to have ten pieces insured for a total of $1 million than to have a thousand pieces insured for a total of $100,000.
Forget being the most famous collector. Aim to be the most responsible and best-protected custodian of your assets.
The Fame and the Fortress
Some collectors are driven by the desire to be famous, to have their name attached to a great collection. They seek publicity and praise. I have learned to aim for something different. I aim to be the most responsible and best-protected custodian of my assets. I focus on my insurance, my storage, and my documentation. Fame is fleeting and can attract the wrong kind of attention. But a reputation for being a responsible, professional custodian is what earns the respect of museums, auction houses, and other serious collectors. It’s better to be a fortress than a celebrity.
The realization that made me finally move my collection’s insurance away from my auto and home agent.
The Specialist and the Separation
For years, I had my collection insured as a rider with the same agent who handled my auto and home insurance. It was convenient. But after a difficult claim, I had a realization: my collection was one of my family’s largest financial assets. Why was I entrusting it to a generalist agent who didn’t understand it? I would never use my family doctor to perform heart surgery. I made the decision to separate my policies and move my collection’s insurance to a specialist broker who only dealt with fine art. It was a critical step in treating my collection like the major asset it was.
What amateur collectors do with their lighting and display cases that museum professionals never do.
The Light and the Loss of Value
An amateur collector might display their valuable watercolor painting in a beautiful frame on a wall that gets bright afternoon sun. A museum professional would be horrified. They know that direct sunlight, and even bright indoor lighting, contains UV rays that will irreversibly fade the colors in a painting or a textile. Professionals use special UV-filtering glass or acrylic in their frames, and they use low-level, specific lighting to minimize damage. Amateurs light for viewing; professionals light for preservation.
The investment in a museum-quality storage system that everyone avoids that has the highest ROI on preservation.
The Cabinet and the Climate
I used to store my valuable documents in a simple filing cabinet. I avoided the high cost of a real archival storage system. That was a mistake. An investment in museum-quality, archival storage—like powder-coated steel cabinets with good seals, and acid-free folders—has the highest possible return on investment. Why? Because it’s a one-time cost that actively prevents the slow, silent destruction of your assets from pests, dust, light, and humidity changes. It’s not an expense; it’s the cost of preservation.
Stop saying “it’s priceless.” Say “it’s insured for its full appraised value of $X.”
The Priceless Myth
When someone asks me what a piece in my collection is worth, I never say “it’s priceless.” That’s a romantic, but ultimately meaningless, statement. It’s a way of avoiding the financial reality of the object. Instead, I say, “It’s a wonderful piece, and for insurance purposes, it’s covered for its full appraised value of $75,000.” This simple change in language does two things. It demonstrates that I am a responsible custodian who has taken the professional steps to protect the asset. And it shuts down any further, awkward questions about money.
The truth about collections underwriting I couldn’t say as a standard lines underwriter.
The Story Behind the Submission
I used to be an underwriter for a big, standard insurance company. We would get submissions for fine art collections and usually just look at the appraisals and the security system. The truth is, a specialist collections underwriter does something more. They look at the collector’s story. Are they a passionate, knowledgeable expert, or a novice who just inherited wealth? Are they a member of collector societies? Do they have a relationship with conservators? A specialist underwriter is insuring the collector as much as the collection. Your reputation for professionalism matters.
This tiny detail in the “breakage” exclusion separates amateur policies from professional ones.
The Clause That Covers the Crack
I collect delicate antique porcelain. My first insurance policy, a standard rider, had a clear exclusion for “breakage.” If I dropped a piece, it wasn’t covered. I thought this was standard. It’s not. A true, specialist fine arts policy has a much more nuanced approach. It will often have a specific, separate, and lower deductible just for breakage claims, or it may offer full breakage coverage for an additional premium. This tiny detail—the willingness to cover accidental breakage—is one of the clearest signs that separates a real collections policy from an amateur one.
Why a low premium is a trap for a collector with fragile, one-of-a-kind items.
The Premium and the Porcelain
You have a collection of fragile, irreplaceable glass sculptures. You get an insurance quote that is surprisingly low. This is not a bargain; it is a trap. The premium is low because the policy is almost certainly riddled with exclusions that make it worthless to you. It will have an absolute exclusion for breakage, it will not be “agreed value,” and it will likely have low per-item limits. For a collection of fragile, unique items, a low premium is a guarantee that the policy is a hollow shell that will not protect you from your most likely cause of loss.
Replace your complicated display with a simple, secure, and archivally sound one. You’re welcome.
The Clutter and the Claim
My collection was displayed on open, crowded shelves throughout my house. It looked impressive, but it was a nightmare from a risk perspective. It was vulnerable to dust, accidental bumps, and theft. I made a change. I put the majority of the collection into secure, archival storage, and I chose only my very best pieces to display in a single, high-quality, locked glass cabinet with proper lighting. My collection was suddenly safer, my house was less cluttered, and my insurance company was much happier. Less is more when it comes to responsible display.
The skill of handling rare objects that’s 10x more valuable than a good bargain.
The Hands and the Hundred-Thousand-Dollar Mistake
You might be a master at negotiating a good bargain when you buy a collectible. But that skill is worthless if you don’t have the skill of properly handling it. I once saw a collector pick up a rare photograph with their bare hands, leaving an oily fingerprint on the delicate emulsion that permanently damaged it. They “saved” a few hundred dollars on the purchase price, but their poor handling skills cost them thousands in value. The skill of knowing when to wear gloves, how to support an object, and how to move it safely is ten times more valuable than being a good haggler.
Stop treating your collection like a hobby. Treat it as a major, illiquid, and high-risk asset.
The Shift from Hobby to Asset
For years, I treated my growing collection as my “hobby.” This mindset allowed me to be casual about how I managed it. My financial advisor gave me a reality check. He told me to stop calling it a hobby and start treating it as what it was: a major, illiquid, and high-risk financial asset. “Illiquid” because I couldn’t sell it quickly. “High-risk” because it was all physically located in one place. This simple shift in perspective forced me to get serious about professionally managing and protecting this major component of my net worth.
The experiment I ran of getting a competing quote from a specialist that proved my current insurer was overcharging me by 30%.
The Quote That Revealed the Truth
I had been with the same big-name insurance company for my collection for years. I was loyal, and I assumed they were giving me a fair price. I decided to run an experiment. I contacted a specialist broker who only deals in fine art insurance. I gave him my inventory and asked for a competing quote. I was stunned. The specialist came back with a quote for a better policy, with broader coverage, for a premium that was 30% lower than what I was currently paying. The experiment proved that my loyalty was costing me a fortune.
Why your old insurance strategy worked before but doesn’t in today’s high-value collectibles market.
The Market and the Million-Dollar Painting
Twenty years ago, a valuable painting might have been worth $50,000. Insuring it with a simple rider on your homeowner’s policy was a reasonable strategy. But today, the collectibles market has exploded. That same painting might now be worth a million dollars. Your old insurance strategy is now dangerously inadequate. In today’s high-value market, you can’t rely on a simple add-on policy. You are protecting a major financial asset that requires a sophisticated, standalone insurance policy with high limits, just like you would for a vacation home or a yacht.
The choice to place your collection in a dedicated trust that everyone judges that actually makes sense for estate planning.
The Trust and the Tax Man
When I told my friends I was placing my art collection into a dedicated trust, they thought it was an overly complicated and pretentious thing to do. They were wrong. It was a savvy estate planning move. By placing the collection in a trust, I ensured that it would be managed professionally by a trustee after my death, avoiding family disputes. It also provided a clear mechanism for handling the collection in a way that could minimize estate taxes for my heirs. It wasn’t about being fancy; it was about being a responsible long-term steward.
I stopped showing my collection to everyone and my security and insurance situation improved dramatically.
The Private and the Protected
I used to be so proud of my collection that I would show it to almost anyone who expressed an interest. I loved sharing my passion. But my insurance broker pointed out that my openness was a huge security risk. I was essentially advertising the valuable contents of my home. I made a difficult decision: I stopped giving tours. I became much more private about my collection. It made me feel a bit like a recluse, but my security profile improved dramatically, and my insurance company was much happier. Sometimes, privacy is the best form of protection.
The concept of “provenance” that nobody with a new collection understands but changes everything about its value.
The Paper Trail to a Higher Price
A new collector buys an object based on its appearance. A seasoned collector buys an object based on its provenance. Provenance is the documented history of an object—its paper trail of previous owners, exhibition history, and past sales. A well-documented provenance can be the difference between a $1,000 object and a $100,000 object. It provides proof of authenticity and historical importance. Understanding that the story and the documentation are often more valuable than the physical object itself is the concept that separates a casual accumulator from a serious, professional collector.
This unpopular opinion on insuring family heirlooms will trigger relatives but it’s true from a financial standpoint.
The Heirloom and the Hard-Nosed Value
Families often have heirlooms that are emotionally “priceless.” Here’s the unpopular opinion: if you want to protect it, you have to treat it like a cold, hard financial asset. You need to get it professionally appraised and insure it for that specific dollar amount. Your relatives might be offended by the idea of putting a price tag on grandma’s locket. But if that locket is stolen, the insurance company is not going to pay you for your sentimental value. They will only pay you for the agreed financial value. To protect an heirloom, you have to temporarily forget it’s an heirloom.
Stop copying your friend’s insurance company. Your collection has unique risks.
The Friend and the Flawed Fit
My friend, who also collected art, recommended his insurance company. He said they were great. I signed up with them without doing my own research. This was a huge mistake. My friend collected oil paintings. I collected delicate works on paper. His policy was perfect for his risks, but it didn’t have the specific coverage I needed for my fragile, light-sensitive collection. I learned that every collection is unique. You need to find an insurer who understands your specific risks, not just the general risks of a friend’s different collection.
The mistake of ignoring your collection’s exposure to natural disasters (flood, earthquake) I see everywhere.
The Quake and the Question of Coverage
I live in California, but for some reason, I never thought about earthquake risk for my collection of fragile ceramics. It was a mental block. My standard collections policy, like most, specifically excluded damage from earthquakes. To be covered, I needed to purchase a separate, additional earthquake insurance policy. It’s a mistake I see everywhere. Collectors will insure against theft, which is rare, but they will completely ignore the massive, and often catastrophic, risk of a natural disaster that is common to their specific geographic area.
Why this new “insurtech for collectibles” isn’t innovative. It’s just a new front-end for the same few specialist carriers.
The App and the Old-School Underwriter
A new “insurtech” company launched with a beautiful app that promised to make insuring my collection easy. The interface was great. But when I got the quote, I realized something. The actual insurance policy itself was not from the new tech company; it was from one of the same three old-school, specialist collections insurance carriers that have existed for decades. The tech company wasn’t an insurer at all. They were just an innovative new broker, a fancy front-end for the same small, specialized market. The tech was new, but the underwriting was the same.
The rule I break consistently (I get my key pieces reappraised every year) and why you should too.
The Annual and the Accurate
Most experts advise getting your entire collection reappraised every three to five years. I break this rule. For my top ten most valuable pieces, the ones that represent the bulk of my collection’s value, I get a fresh, professional appraisal every single year. The market for high-end collectibles can move quickly, and I never want to be caught underinsured on my most important assets. It’s an extra expense, but the peace of mind of knowing my most valuable pieces are always insured for their full, current market value is worth every penny.
Stop believing your love for your collection will protect it. Believe in a standalone, agreed value collections insurance policy instead.
The Love and the Loss
I truly love my collection. It is my passion and my life’s work. For a long time, I think I subconsciously believed that my deep love and careful attention would somehow magically protect the objects themselves. That’s a beautiful, but dangerous, fantasy. My love could not stop a house fire. My care could not prevent a theft. My love is what makes the collection valuable to me, but a standalone, agreed value insurance policy is the only thing that can protect its financial value for my family. Believe in the policy, not in the passion.