Is Your Vintage Toy Collection Underinsured? Signs to Watch For

Collecting vintage toys has grown exponentially in recent years. People all over the world are buying toys to grow into a collection. Since vintage toys rise to high values over time, most vintage toy collections are also incredibly valuable.

Some people don't realize there are special insurance options for collectibles and vintage toys. Along with this, many people have collections that are greatly underinsured. If the total value of your toy collection equals more than your insurance policy limit, your toy collection is underinsured.

There are many different reasons a vintage toy collection might be underinsured. Follow along in our blog with us to see signs to watch for when looking at if your toy collection is underinsured or not.

Join Us in Seeing How Your Toy Collection Could be Underinsured

There are multiple factors that can lead a toy collection to be underinsured. When this happens, your loved toy collection will lose value when you actually need the insurance. They will not be protected fully and will not be replaceable if damage, theft, or loss occurs. Follow along in our blog to see the reasons for why your toy collection might be underinsured.

Relying on Homeowners Insurance

Using only homeowners insurance for a valuable, vintage toy collection is risky. Although homeowners insurance covers so many differents assets, it is risky to use for collectibles since they will most likely be considered personal property and won't get insured for their true value.

Often, homeowners insurance companies only cover items for a specific amount and since they aren't considered for their true value, they might only get covered for anywhere between $500-$2000. This would clearly not be enough for highly valued items or a big collection.

Many vintage toys individually can cost this much money or even more. This is problematic when you have a whole collection of items at a high value. The homeowners insurance will not cover it all. Homeowners insurance often won't cover your items when traveling as well, so if you are looking to take your prized toys to a convention or exhibition then they won't be insured at all.

Especially High Valued Items

Since homeowners insurance typically won't completely cover your vintage toys, you may need a more specific insurance to completely cover and protect your loved collection. For especially high valued toys, typical insurance will leave your items underinsured and in need of more protection.

Collectors insurance can be helpful in this area since you will be able to get specific insurance for the real value of your toys. You can have more confidence that, if something were to happen to your valuable collection, it will be taken care of.

Using Actual Cash Value

Another reason your vintage toy collection is underinsured is beacuse you are using actual cash value. Often, collectibles are actually more valuable than the actual cash value when you factor in the emotional and nostalgia aspects. From this, your collection may be underinsured if you go off of cash value rather than the actual value and would lose that real value if your collection gets damaged.

Typically, a collectible insurance will use the true value and make sure that your items are fully covered. This helps with knowing that the value of your items are agreed upon between you and your insurance company or agent.

Because the value of collectibles is based upon the market and demand from buyers rather than the cash value, an agreed upon value is greatly beneficial. This is when you agree on the value of an item so if something would happen to it, insurance would go by the agreed upon value rather than the cash value so you won’t be struck with depreciation. 

If your toy needs to be replaced due to damage, oftentimes, insurance would match that to the equal value of your other item for replace value. The replace value goes off of your agreed upon value rather than the cash value. This way, you won’t be surprised by anything and can be confident that, if or when something happens, you will know what to expect rather than losing significant value. 

Non-Updated Insurance Policy

Next up, we will mention how having an old insurance policy can make your toy collection underinsured. There are two main factors we will mention here. The first one includes not updating your policy for years. If you have an old insurance policy from previous years, your vitnage toys have probably grown in value and the insurance no longer covers the new high value.

Since many vintage toys increase in demand rather than decrease due to the rarity and condition, many items grow in value in just a couple of years. If your insurance company goes off of the agreed upon value, it still may be underinsured if the items have risen in price.

Another reason your collection might be underinsured from a non-updated insurance policy is if you have recently added to your collection. These items that haven't been appraised yet, declared a true value, or been added to the insurance policy, won't get covered for insurance.

Your Collection Isn't Properly Appraised

If you own a collection of high valued items, it might be underinsured if each item isn't properly appraised. Professionals, toy experts, and agents can help to detemine the true value of an item from years of experience as well as looking at the market value.

Since a collectible doesn't show true value until it's sold, it can be difficult to determine the vaue of the items. Your insurance company might not know the exact value of your items, especially with a homeowners or apartment insurance. Someone with a specialty in collectibles can help with this to make sure your collection is fully insured.

Check for "Blanket" Coverage

Another factor when looking at if a toy collection is underinsured or not is to see if the collection needs "blanket" coverage. This type of coverage benefits many people if they have a big collection but the individual items are not worth too much on their own.

If you have a lot of low valued items, collectors insurance won't be needed most of the time. However, if you have a big enough collection, it may still hold a higher value than just homeowners insurance covers. This is where another type of coverage comes in, titled "blanket" coverage.

Through this, your entire toy collection will be fully insured if anything were to happen to it. This “blanket” coverage ensures that your collection as a whole is covered rather than each individual item getting special appraisals and insurance to get covered entirely.

Final Thoughts

An underinsured toy collection is risky. You never know when something is going to happen where you will need full insurance until it does. If you keep checking the market for raised value on your items, keep your insurance policy updated, ask professionals, and look into the specific insurance that is best for you, then you can be confident that your toy collection is up to date on insurance and you won't risk losing money or value on your items if anything happens to them.

Do You Have Old or Used Toys?

Don’t let your collection sit in storage gathering dust—turn it into cash! At Wheeljack’s Lab, we specialize in evaluating and buying vintage and used toys, from single standouts to entire collections.

Our friendly, expert team has decades of hands-on experience in collectible toys, so you can expect honest evaluations and a smooth process from start to finish. Ready to sell? Call us at 888-946-2895 and let’s get started.

About the Owner, Chris Ingledue

Chris is the founder and owner of Wheeljack’s Lab Pop Culture and Toy Shop. His vision has always been to reconnect collectors with the toys and pop culture that shaped their childhoods—sparking memories, nostalgia, and imagination along the way.

Each day in the “Lab” feels like Christmas year-round. From scouring the internet for the next great treasure—much like flipping through the Sears Catalog of years past—to eagerly awaiting the postman’s arrival like Santa himself, Chris lives and breathes the thrill of the hunt. Helping collectors around the world experience their own version of Christmas is what makes being a vintage toy buyer an absolute joy.