You’ve spent countless hours building a treasured collection of stamps, vintage rock ’n’ roll records or model trains, and you’ve taken great pride in displaying and enjoying them. But without the proper insurance coverage, your valued collection might be at risk. You might need the protection of personal property coverage. But before you buy a policy, there are five things you need to know.
1. Homeowners Insurance Might Not Cut It
While most standard homeowners insurance policies provide coverage for collectibles, it’s often limited. In order to ensure your most prized possessions are protected, you may need to add a special endorsement to your homeowners policy, or even purchase separate personal property coverage.
2. You May Need to Have Your Collection Appraised
Before an insurance company will cover your collectibles, an independent appraiser might need to assess your collection to determine its worth. You can find a certified appraiser in your area by checking out appraiser organizations, such as American Society of Appraisers or Appraisers Association of America.
3. Personal Property Coverage Has Its Limits
Before purchasing a policy for your personal items, ask about coverage limits. Make sure you’re purchasing enough insurance to cover your collection. Also ask about valuables that might not be covered at all, such as jewelry or musical instruments.
4. You’ll Need to Update Your Insurer on New Purchases Added to Your Collection
As you add new items to your collection, remember to update your insurance company. Consider, too, that you might need to have new items independently appraised before they can be included in your policy. While this may seem like a hassle, the extra effort is worth it. Unless new items are reported to your insurer, you may not have the coverage you need to protect your valuables.
5. Personal Property Coverage Is Just One Part of the Equation
Personal property coverage provides peace of mind that your cherished collection is covered if something happens. But remember that insurance is just one element of protection. Consider storing valuables in a safe deposit box or secure home safe and installing an alarm system in your home. These moves not only reduce the risk of theft, they may also help you get a discount on personal property coverage.
Do You Need Personal Property Coverage?
Have questions about whether your valuables are covered or want to add them to your policy? Get in touch with your Farm Bureau agent today.