What is Covered By Homeowners Insurance Policies?
Most people have some form of homeowners or renters insurance. We like to have peace of mind knowing our property will be replaced if a disaster were to occur. However, homeowner’s insurance only goes so far – it covers every day, easily replaceable personal property. Your prized possessions that you’ve spent a lifetime collecting most likely will only be covered to a small degree. Additionally typically homeowners policies:
– Coverage is based on what you paid – not its current market value.
– Generally, limit the coverage of the contents in your home to a percentage of your home’s total value. Usually somewhere between 50-70%.
– May not cover losses caused by floods, hurricanes, or earthquakes.
– Generally have limited or no coverage for valuables such as silver, guns, stamps, toys, and other collectibles.
– Some require you to appraise all items individually. With new items needing to be reported and scheduled within 30-90 days of acquisition.
What Coverage Do You Need?
You likely need a coverage plan that actually offers a full range of protection for your toy collection. A comprehensive insurance plan is needed. That includes (but is not limited to): accidental breakage, burglary/theft, fire, flood, natural disasters, and even insurance for storage facilities.
Unlike homeowners insurance, a collectibles policy doesn’t require you to inventory all the separate items in your collection. Collectibles polices also don’t require you to pay to have them appraised. Only individual items or sets valued over $25,000 or more generally need to be scheduled. Do note that you’re responsible for maintaining accurate records of your collection for insurance purposes. So take that task seriously and have your records online in iCloud, Google Docs, or similar platform.
Collectibles coverage plans typically cost less than appraising and scheduling the same items under a homeowner’s policy. Give yourself the peace of mind knowing your collection is protected. Be it with a properly researched homeowners policy that does cover your collection or a collectibles policy. If you have never considered this, call your agent today so you know your buddies are safe!