SDB or Insurance?

cameron12x

Does any insurance carrier offer reasonable premiums for insuring coins?

Or is the best approach simply to use a safety deposit box to store your best coins?

Broadstruck

<< <i>Does any insurance carrier offer reasonable premiums for insuring coins?

Or is the best approach simply to use a safety deposit box to store your best coins? >>



You still need to pick-up insurance as there is non with just getting a SDB at your bank.

kranky

Hugh Wood offers reasonable insurance for ANA members. Broadstruck points out wisely that even if you use an SDB you still need insurance - you store things in an SBD at your own risk.

Barndog

the answer is BOTH. I use Hugh Wood for insurance and keep coins in a SDB.

AnkurJ

There is also a company called collectinsure that advertises on the collectors universe main page. Does anyone use them?

ricko

How about neither... just a secure house, really good safe and protection devices. Been working for me all these many, many years. Cheers, RickO

Barry

IMO, insurance is overpriced and unnecessary, based on the risk if you secure your collection in a SDB and/or quality home safe.
The premium is typically 1-2%/year. Do 1-2% of collectors get robbed of their collection every year? Seems to me, the premium is at least 10x what it should be.

See old thread

TomB

Both. Also, you may want to actually call an insurer such as Hugh Wood and find out their premiums. Contrary to the 1%-2% estimate given in this thread, the premiums from Hugh Wood can be substantially lower.

Barndog

my insurance premium with Hugh Wood is approximately 0.56 percent. Pretty darn inexpensive

blu62vette

<< <i>the answer is BOTH. I use Hugh Wood for insurance and keep coins in a SDB. >>

Classof67

<< <i>There is also a company called collectinsure that advertises on the collectors universe main page. Does anyone use them? >>



I have a policy with them, but it is mainly for my other collectibles. It does not cover gold, platinum, or bullion. The company is called Collectibles Insurance Agency, and is based in Baltimore.

cameron12x

Thanks for all of the information, folks... Much appreciated!

cladking

It can be difficult to get insurance to pay off on collectibles
since you'll need receipts and proof of value for everything.

I believe a SDB is just a lot easier and a lot safer especially
if your coins have increased in value substantially or estab-
lishing market value would be difficult.

There's nothing wrong with having both though.

mozin

Coin collection insurance is way too expensive. It should be far less to insure a collection. Last time I looked, the entire collection needs to be insured, and to get the best rate, all must be stored in a bank safety deposit box. Anything kept in a home safe can only be there for a very short time for study purposes, etc. There are other small print problems with coin collection insurance, like special alarm systems on the home.

Consider a $100,000 collection with annual insurance premium of $1,000. "Only" $5,000 per year for a $500,000 collection insurance. Sure makes safety deposit box rates look like real bargains.

johnny9434

both. a little safety goes a long way. maybe even get a coupla mean dogs and big weapon for good measure

Barry

<< <i>my insurance premium with Hugh Wood is approximately 0.56 percent. Pretty darn inexpensive >>


OK, so I'll revise my statement:
Do 0.56% of collectors get robbed of their collection every year? Seems to me, the premium is at least 5x what it should be. And I'll add - if you have a significant collection, the premium is still a significant yearly expense.

Steve

I think the decision of insurance depends on the RISK one wishes to take. If you invest in the stock market you are taking the risk that the stock may go DOWN over time. You are paying for insurance or a safe deposit box in order to REDUCE the risk. You can never eliminate the risk. The risk as far as coins is concerned is the risk of losing value in an asset. Without insurance you can lose if the coins are stolen OR the value of the coins go down.
Steve

roadrunner

SDB's are plenty safe as a rule. Until the day comes when govt and bank officials start locking down boxes or are demanding to see what's inside, then they should continue to be a secure medium. But that day is slowly coming. And when that occurs, you'll probably have to start keeping your coins at home where it's safer, without full coin insurance available.

I believe Barb Wingo's firm also offers rates in the same range as Hugh Wood. 20 yrs ago or more coin insurance cost an arm and and a leg. It has improved much in that time. Though it all comes down to how efficient and fully an insurer pays off appropriate claims. Getting a great rate is only the first step.

roadrunner

doh

SDB

illini420

<< <i>SDB's are plenty safe as a rule. Until the day comes when govt and bank officials start locking down boxes or are demanding to see what's inside, then they should continue to be a secure medium. But that day is slowly coming. And when that occurs, you'll probably have to start keeping your coins at home where it's safer, without full coin insurance available.

roadrunner >>



I'm more worried about the bank flooding or burning down or anything else that could damage my coins (even though they would still be safe in the vault). That's why I have the box at the bank AND insurance.

cameron12x

Well folks, timing is everything in life... There is some bitter irony to this short story.

I've never been assaulted, robbed, or vandalized in my entire life... I usually come home for lunch, but had a business lunch today with some colleagues.

When I got home from work at 6:00 tonight I found my apartment broken into. Fire-resistant safe pried open. Computers gone. Flat screen TV gone. DSLR cameras and equipment gone. Coins stored in various places gone. My avatar is no longer relevant other than the memory of my first Charlotte gold piece.

The timing of this astounds me. I created this thread two days ago. I reached out to my insurance agent Wednesday to inquire about coin insurance.

The police have come and gone and have filed their report. Next steps? Local coin dealers put on alert? Pawn shops put on alert? I'm at a loss, literally.

doh

Oh wow...that's absolutely terrible. Alert the pawn shops and coin shops in your area to the theft. They should be on the lookout for your coins.

It seems like the thieves knew your place had valuables...can you think of anyone you might have told something??

cameron12x

Should I create a separate thread? I'm not sure how many members/dealers we have in the Columbus area who could be on the lookout.

I notice on this website that we're forced to enter some value for our last name. So, anyone monitoring this site (and perhaps this thread) knew my first name, last name and that I live in Columbus, Ohio. I know it's a longshot, but the timing of all of this is surreal.

mrearlygold

Sometimes I wonder about that business. Especially if you can avoid the retail crowd and only sell to coin dealers. What I paid in premium last year. Yikes!

If you are going to put any significant amount of capital in rare coins and precious metals , you can't afford not to have insurance on it. And keep it in a safe deposit box.

I'd really like to hear any reports from people having coins in an apartment or even an owned house getting broken into and stolen, filing a report with the police and then a claim with the insurance company. Generally there's breaking and entry coverage, armed robbery coverage, transit, shows, bank vault, etc. Do they insure rare coins against breaking and entry at a house or apartment? What are the restrictions?

I just find it hard to believe that an insurance company would pony up to a collector who says he just lost 50 grand in a breaking and entry, that the coins were on his/her desk etc. There has to be more to this.

blu62vette

I think to get insurance on a house or apt you will need an alarm and a TL-15 or TL-30 safe at a minimum.

cladking

<< <i>Should I create a separate thread? I'm not sure how many members/dealers we have in the Columbus area who could be on the lookout.

I notice on this website that we're forced to enter some value for our last name. So, anyone monitoring this site (and perhaps this thread) knew my first name, last name and that I live in Columbus, Ohio. I know it's a longshot, but the timing of all of this is surreal. >>




I'm so sorry to hear of this.

Yes. Start another thread. Maybe the word can get out and find these coins.

Konahead

Konahead

<< <i>How about neither... just a secure house, really good safe and protection devices. Been working for me all these many, many years. Cheers, RickO >>