I woke up to the sound of rushing water and found my basement mancave ankle-deep in muddy sludge. My display case of vintage Pokémon cards, including my prized PSA 10 Base Set Charizard, was submerged. I frantically filed a claim with my homeowners insurance, expecting a payout of $15,000 for the collection, but the adjuster pointed to the “Special Limits of Liability” and cut me a check for exactly $500.
Key Takeaways
- The Flood Exclusion: Standard homeowners policies never cover flood damage (rising water from outside). You need specific FEMA flood insurance, which barely covers contents.
- The “Collectibles” Sub-Limit: Even if the water came from a burst pipe (which is covered), most policies cap “trading cards, stamps, and manuscripts” at $500 or $1,000 total.
- Water vs. Moisture: Direct contact with water is damage. “Humidity” causing curling over time is considered “neglect” or “maintenance” and is denied.
- Slabs aren’t Waterproof: PSA and Beckett slabs are sonically welded but not water-tight. Muddy water gets inside and ruins the card instantly.
The “Why” (The Sub-Limit Trap)
Insurers view collectibles like cash or jewelry—high risk, hard to value.
“Special Limits of Liability: $500 on stamps, trading cards, letters, and manuscripts.”
Unless you “Scheduled” the collection (listed each card and paid extra), you are capped at this tiny amount, regardless of the collection’s real value.
The Investigation: Protection Against Water
I simulated a claim for a water-damaged collection with three providers.
1. State Farm (Standard Homeowners)
- Verdict: Disaster.
- The Details: Unless I had a “Personal Articles Floater” specifically listing the cards, the $500 cap applied. Also, if the water was “Groundwater” (flood), they pay $0.
2. Collect Insure (Specialty)
- Verdict: Covered.
- The Details: They cover flood damage (in most zones) and water damage. They pay “Insured Value.”
3. FEMA / NFIP (Federal Flood Ins)
- Verdict: Limited.
- The Details: They cover the structure and mechanicals. Contents coverage is limited and usually pays Actual Cash Value on “paper goods,” depreciating them to near zero.
Comparison Table
| Scenario | Homeowners Policy | Specialty (Collect Insure) |
| Pipe Burst (Internal) | Covered (Sub-limit $500) | Covered (Full Value) |
| Flood (Rising Water) | Excluded | Covered (Check Zone) |
| Sewer Backup | Excluded (Unless Endorsed) | Covered |
Step-by-Step Action Plan
- Get Them High: Stop storing cards in the bottom shelf of a basement safe. Move them to a top shelf or a waterproof Pelican case.
- Schedule the Cards: If you rely on Homeowners, call your agent and “Schedule” the high-value items. It costs more, but it bypasses the $500 cap.
- Buy a Standalone Policy: For collections over $5,000, move them to a dedicated policy. It covers flood, requires no appraisal, and has $0 deductible.
FAQ
Are PSA slabs waterproof?
No. They are water-resistant, not waterproof. Submersion will destroy the card.
What if I dry them out?
Water stains lower a PSA 10 to a PSA 1 instantly. The loss of value is the claim.
[IMAGE: Photo of a PSA slab with water condensation inside the plastic case]