More and more consumers are finding peace of mind in protecting and insuring their treasures. Consumers put an emotional and financial investment into acquiring their pieces; so insuring the collection should be a top priority.
Many insurance companies offer special policies to protect your collection. With the secondary market continuing to grow in popularity and some pieces appreciating in value over time. Consumers often have a false sense of security in thinking their pieces are adequately covered under their homeowners’ insurance policy. Typically your collection is not covered. Be sure to talk to your agent to find out if your collection is properly covered. Collectors may want to specifically seek a policy for their limited edition pieces.
There are basically two types of coverage: blanket and scheduled.
Blanket Coverage: is much easier because the insurance covers every piece and the overall value of the collection. For example, if a collector has 30 pieces of Pipka valued at $3,000, the blanket policy would provide protection in a lump sum amount. The items don’t need to be listed separately. This coverage is sufficient unless an individual piece is valued at an unusual large value.
Scheduled Coverage: is for limited edition figurines of exceptional value that need special protection. Collectors must provide a list of the pieces in a collection and tell the insurer the value. Collectors may also choose a combination of blanket and scheduled coverage.
To properly insure and protect your pieces, consider the following advice:
Keep all receipts. Consumers should make sure they get a receipt for each piece acquired, whether from a store, friend or on the secondary market. Check that the receipt accurately identifies the item purchased and the price paid.
Record information. Whether you write it down on a piece of paper or type it into a computer document, keep crucial information on each piece and make copies of these materials, too. This documentation should include:
• Item name, number and description
• Name of manufacturer / Artist
• Year of issue / Limited edition number
• Series name or number
• Special markings
• Purchase price / Place and date of purchase
• Any other relevant information
Make a visual record of your pieces. The single best record is to videotape the collection because you cannot only see the figurines, but you can record a narrative. Be sure to update the videotape about twice a year, or as needed, when more pieces are added to a collection. Also, taking photographs of the pieces are also good to have. If a piece is signed, a photo should also be taken of the autograph or other significant markings.
Keep all records off site. Make sure that all your documentation; receipts, item information, photographs, videotapes or Certificates of Authenticity, are stored safely in a location away from your collection. It is recommended that these records should be placed in a safety deposit box.
Read your policy carefully. Many collectors find out too late that their treasured belongings are uninsured or underinsured. Take the time to review your homeowners’ insurance policy, and make sure your figurines would be adequately covered in case of an emergency. Check if the insured items are covered for their value at the time of purchase or covered for the amount that it would take to replace them at the time you make a claim. Since some pieces increase in value over time, you probably want to consider a “replacement value” policy.
Investigate insurance companies and coverage. Deal with a company that is reputable and pays its claims promptly and fairly. Be sure you discuss all your special concerns with your insurance agent to make sure you have the coverage and sense of comfort that you need.
Regularly update policy information. If you collection appreciates to a higher value or you acquire new additions, it is important to update your policy. Review your policy at least once a year or whenever your figurines experiences a drastic change in price.
