Does Your Insurance Policy Cover Your Toy Collection?

Most people have some form of homeowners or renters insurance, we like to have peace of mind knowing that our personal property will be replaced if an accident/disaster were to occur. However, homeowners insurance only goes so far – it covers every day, easily replaceable personal property. Your prize possessions that you’ve spent a lifetime collecting most likely will only be covered to a small degree, if at all. Additionally typically:

Homeowners coverage is based on what you paid – not its current market value.
Homeowners policies generally limit the coverage of the contents in your home to a percentage of your home’s total value (usually somewhere between 50-70%).
Homeowners policies may not cover losses caused by floods, hurricanes, or earthquakes.
Homeowners policies generally have limited or no coverage for valuables such as silver, guns, stamps, toys, and other collectibles.
Some homeowners policies require you to appraise all items individually with new items needing to be reported and scheduled within 30-90 days of acquisition.

You likely need a coverage plan that actually offers a full range of protection for your toy collection. A comprehensive plan 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 or 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 are responsible for maintaining accurate records of your collection for insurance purposes, so take that seriously and have it online in iCloud, Google Docs or similar platform.

Collectibles coverage plans typically cost less than it would cost to appraise and schedule the same items under a homeowners 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!

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