Questions about insuring your collections?

GoSoxBoSox

Experts,

Over the past few years I've had a few people that are knowledgable about sports card collecting look at my collection. Not for the purposes of selling to them, but as hobby enthusiast that love to see decent quality vintage cards. Most of them have told me I need to insure my collection which, of course, I never did because of cash flow issues.

Anyway, times have changed. I need to cover my investments from the last 28 years. I never thought much about what companies insure sports cards, but I assumed the All-State's and State Farm's of the world would carry this type of insurance. Well...I was wrong. Do any of you have suggestions?

What companies are the best to one's to look into?
What will they put me through?
Costs per $10k of insurance I can expect?
etc, etc?
Any other tid-bits you think I need to consider?

Thanks for the input.

Tom

JeffVN

I have State Farm, and the rider is pretty cheap about $100 per year for around $12,500 in full replacement coverage. I hope my expensive rookies never get hurt and have to be replaced. They are sweet for the grade. I know there is a web-based company that is probably cheaper, but I prefer to have my house, cars, guns, and cards all with the same guy.

GoSoxBoSox

Thanks JeffVN. I talked to State Farm today and they said no way. That's my problem. Their coverage is capped at $20k. I need much, much more coverage than that just to cover what I have put out of my own pocket..... thus my dilema. State Farm told me to call Lloyd's of London so I was wondering what I could expect from the people that are in the know?

Personally, until I recently joined the boards I've been flying solo in this hobby. I've never really spoken extensively to many serious collectors or dealers. Just a quick question here or there. I just buy....and buy....and buy. I finally need to be smart and cover my collection in case of fire, theft...or whatever? As you all know, it's almost impossible to replace items that are so hard to find. And yes.....I'm a collector........not an investor.

There's no doubt I've been stupid not covering my investment for all these years. I just hated that my collection would have overhead. I always spent the money on new cards instead!!! Time to bite that bullet I guess.

Thanks again....Tom

gtbeaker

Strange...because I also have State Farm and have a $50,000 insurance amount attached to my renter's insurance. I wonder whose agent is right (yours or mine). Either way, I've heard the "best way" is to get an appraiser come and look at your collection and determine the value that way. Unfortunately, appraisers are pretty expensive ($100+/hr) and there's no guarantee that what they come up with will be indicative of what your collection is actually worth (ie sportscards are not their field of expertise). Let me know if you find a suitable alternative.

GoSoxBoSox

This particular office in New Jersey doesn't even write car insurance policies anymore. With the insurance situation in this state who can blame them. Anyhow, I guess it varies by office which are independently operated.

Do you know anything about these "appraisers" and how they work? I would take them forever and a day to look at all my "stuff" Please....please....somebody show me a better way!!!!

AROD626

I also have a $50,000 rider on my renters insurance, the cost isn't that bad and peace of mind is priceless. I just did this recently. The 50k isn't enough to replace everything I've accumulated over the years but at least it's a start.
Gobosox- Keep looking, someone in your area is bound to provide coverage.


I live in Wisconsin

Mefer

I have insurance through this company (maybe the web based company you are thinking of):

http://www.collectinsure.com/

Real easy to deal with and no complaints. Reasonably priced.

As far as what a carrier may or may not cover, you probably should keep in mind that a carrier may have different coverages available in different states. What may be a cap of coverage in one state may not be in another state. I don't know the details of the State Farm issue, but I would be willing to be that you guys are in different states.

Good luck.

BOTN

Tom

Take a look at this policy.

Greg

1954

Since I am in the field of insurance, maybe this will help. State Farm, All-state, and Farmers will NOT insure any type of collection as a rider. The coverage that most of us have is a very limited coverage under the personal property coverage of our Home/Renters insurance. It only protects our items from the perils of theft, tornado, and fire. (some companies might include water, but not in Texas) You have a deductible that is included for this coverage under the clause 2 of your policy.
A company that I use now will provide a very broad coverage for Stamps, Cards, and guns. The company is Safeco Insurance. They will only write HOB policies (home insurance) with a minimum of $250,000 on the home. The rider has a minimum of $50,000 of coverage with NO deductible. And the coverage will provide you with ample coverage.
Hopefully this will help.

1954

GoSoxBoSox

Botn,

NICE!! The rates are 60% cheaper then the best I've seen so far. I guess the one thing that bothers me is that this all seems too easy. None of these companies want any REAL detail or proof of ownership. Is there a catch of some sort if, god forbid, I ever made a claim?

I see that they all pay "market value" of card replacement rather then the insurance amount which your fee is based upon. That's probably where they have an edge because people tend to over value their collections. So I see it's best to be realistic rather then overpay too much. However, the premium is so cheap it's better to over value your cards a certain small percentage because the market can be volitile.

What do you think about that? Do you have any experience with this company? Do you understand what happens if a claim is placed and how us collector's are "taken care of"?

Tom

BOTN

Tom,

My Brother has a collectibles business and carries several hundred thousand dollars in cost of inventory. He has made claims and has never had a problem. I am not sure what the catch is but he has not hit a snag and been with them for a few years. I was under the impression that they only covered you for cost, not market-which tends to be higher. If that is the case then you just need to have some type of proof of what you paid for the items in your collection.

Greg