Insurance to protect your valuable coins-do any collectors do this?

I have a couple of insurance policies. One is through a reputable insurance company, and the other is through a reputable firearms manufacturer.

I thought almost everyone would have insurance for any reasonable size collection? Anyway, I use Collectibles Insurance Agency collectinsure.com, the price depends on what safeguards you have (SDB/safe/monitored alarm/etc) and of course the rate per $1000 coverage changes depending on the value of the collection. I'm not sure what mine was at the last renewal but it seems to me that $4-6 per thousand would be a good number to work with.

Hugh Wood, via the ANA, charges about 1/4 of 1% per year for stuff stored in the SD box.

My theory on insurance is the same as my theory on extended warranties:

There's a reason they WANT to sell it to you....THEY make money on the deal.

Don't buy it unless you can't financially handle the loss (or repair) with your everyday income and cash flow.

Obviously, home owner's, and automobile, and health are all potential HUGE expenses above what most people can handle with existing income and savings....buy the insurance. For most everything else, I'm willing to take the risk, and assume I will probably come out ahead in the end.

Of course, if your retirement is dependant on your coin collection, or your life savings is tied up in it, your own analysis may vary.

<< <i> And for those of you who have safety deposit boxes but no insurance, what if the bank burns down >>



The vault won't burn



<< <i> is flooded, >>



Won't hurt the coins



<< <i>or burglarized and the safety deposit boxes are broken into? >>



Yes, this is a valid concern




<< <i>In my view, 1/4 of one percent is very reasonable. >>



That would depend on what the odds of a safe deposit box burglary actually occurring wouldn't it? Something like one in a million per year? If something occurs one in a million but they charge you 2,500 times that in premium then I don't find it very reasonable at all....

<< <i>

<< <i> And for those of you who have safety deposit boxes but no insurance, what if the bank burns down >>



The vault won't burn



<< <i> is flooded, >>



Won't hurt the coins

Heat damage could cause an issue with melting of slabs.

Flood = bank closed a long time for EPA and others to supervise the cleanup, water might have gotten into the slabs, what will they look like in several months if water is in the slabs?

But you do raise good points.

<< <i>Yes........let's all not use the services of any doctors, since they make money.........evil ba$tards they are, selling a service for money.......how dare they........ >>



I think you're projecting opinions upon us which were never expressed.

My point, (and others), was that just because you have coins doesn't mean you need coin insurance. Just because you have a pet doesn't mean you need pet insurance. Just because you wear eyeglasses, and get yearly checkups, doesn't mean you need vision insurance. Just because you may someday be hit by a meteorite doesn't mean you need meteorite insurance.

Look at your financial situation. Assess the cost vs. the benefit. Determine what loss you can already handle, and tolerate, based on your own financial situation. THEN decide if you need insurance. Availability of a product doesn't necessarily mean it's financially required.

<< <i>

<< <i>Yes........let's all not use the services of any doctors, since they make money.........evil ba$tards they are, selling a service for money.......how dare they........ >>



It has nothing to do with that. If I feel the chance of something happening is one in a million then if I am insuring $10M it's worth $10 to me. Why should I pay $25,000 for something worth $10? >>



That EV (expected value, to borrow from poker math) calculation is correct based on your 1 in a million safe deposit box robbery premise. But there are other factors when insurance is involved. For most collectors, an expensive coin or collection represents an extensive amount of years of trading up coins, buying/selling, etc. If they were to lose the fruit of their efforts, they may not have the time (labour time or literally time until death) to obtain that level of coin/collection again. So I do see it being worth having their investment insured. The peace of mind gained from that insurance premium is important to a lot of people.

That being said, personally I only pay a stiff insurance premium on what cannot be replaced, or what I can't afford to replace. Such as home insurance, life insurance (if I had any dependants), etc. Like TDN and SmEagle, I keep all of my valuable coins spread out in various safe deposit boxes at banks I trust and I do not pay insurance premiums on them. I keep as little in the house as possible at any given time.

'tis funny, the different ways people see things.

In some ways, the people who can least afford it, often end up paying the most. Those whose collection represents only a part of an otherwise sizable estate probably don't need any insurance. Assuming they take a few reasonable precautions, avail themselves of an SDB, and don't advertise that they carry gold bullion in their pockets, why should they be bothered with "one more expense"? If their collection disappeared it would be an inconvenience, a source of sadness maybe, but it wouldn't be devastating.

Others, who have worked hard, scrimped and saved, thrown every cent they have into their collection, toiled and travailed to find "just the right ones" over a lifetime would be completely wiped out by a loss. These people probably need the security that a policy would provide.

In general, I think most people are over-warrantied and over-insured. I see eating breakfast as a real, but acceptable risk. I have crashed motorcycles way up in the mountains, raced snowmobiles (broke both arms once), flown in WWII fighters, routinely operate on people with HIV and Hep C, once did a dance with a cobra under my feet while hunting in Africa, and so far it's all been a blast. Most likely I'll die someday of a mundane, first-world sugar/cholesterol/red meat induced disease, tucked away safely in an overpriced hospital bed, consuming far more resources in my final days than can be justified. So be it.

When it comes to coins, the specifics of my security plan aren't discussed openly. Let's just say there is one and that it has several layers. There are ways it could be defeated, but I'm comfortable with my odds. It all comes down to what you could afford to lose.

I use collect insure as I have a variety of collectibles. It costs a fraction of requested coverage and protects during transport, mail and at home/bank obviously. They don't insure coins only though.

I have insurance for three reasons. One, even though the coins sit in a SDB, there is enough value tied up in my collection compared to overall net worth that I don't want to worry about the one-in-a-million scenario where something may happen. Two, I have special insurance riders where my coins are protected in transit to and from the SDB. That includes transit it bringing them home and while they are at my house. It also includes while they are with me at shows or for whatever reason in my possession. Three, it keeps my wife sane.

TahoeDale - Pm me if you want more info.

<< <i>'tis funny, the different ways people see things.

In some ways, the people who can least afford it, often end up paying the most. Those whose collection represents only a part of an otherwise sizable estate probably don't need any insurance. Assuming they take a few reasonable precautions, avail themselves of an SDB, and don't advertise that they carry gold bullion in their pockets, why should they be bothered with "one more expense"? If their collection disappeared it would be an inconvenience, a source of sadness maybe, but it wouldn't be devastating.

Others, who have worked hard, scrimped and saved, thrown every cent they have into their collection, toiled and travailed to find "just the right ones" over a lifetime would be completely wiped out by a loss. These people probably need the security that a policy would provide.

In general, I think most people are over-warrantied and over-insured. I see eating breakfast as a real, but acceptable risk. I have crashed motorcycles way up in the mountains, raced snowmobiles (broke both arms once), flown in WWII fighters, routinely operate on people with HIV and Hep C, once did a dance with a cobra under my feet while hunting in Africa, and so far it's all been a blast. Most likely I'll die someday of a mundane, first-world sugar/cholesterol/red meet induced disease, tucked away safely in an overpriced hospital bed, consuming far more resources in my final days than can be justified. So be it.

When it comes to coins, the specifics of my security plan aren't discussed openly. Let's just say there is one and that it has several layers. There are ways it could be defeated, but I'm comfortable with my odds. It all comes down to what you could afford to lose. >>


Well said, and I generally agree--except the part about red meat.

I have a very small insurance policy to cover, a rider on my homeowner's policy, to cover coins that I might have in transit or at the house. To be honest, I am not sure why. I rarely have anything of significant import or value at home. The bulk of the value is in an uninsured SDB. I guess if my financial well being was materially tied to the coin collection (and I would argue that is a precarious position, unless you are a full time dealer), I would have a more comprehensive policy.

I have heard TDN's explanation, over the years, and have bought into it. I do insure my wife's jewelry, and it paid off when she lost an expensive earring. I generally ask for the highest deductibles possible because if you do the math, over time, you are likely to save money. However, if the $1000 or $2500 or $5000 deductible (or whatever) would create a significant hardship, you can justify the lower deductible. Everyone has different circumstances and risk tolerances.

<< <i>...... oh, the horror.....

Gads, that's exactly the sort of typo / mistake that drives me bonkers.

They're, their, there. It's, its. Meat, meet. I durn well know the difference. >>


In all candor, I was not referring to the typo. It did not register to me until you pointed it out. This is a coin message board, not a PhD dissertation in English literature. There is something about having spellcheck that is making all of us worse at spelling.

I was simply making reference to the fact that I do not eat meat (red or otherwise) and have not done so for nearly 20 years.

Your points were excellent. That was the point of my post.

I spend very little on anything except the coins themselves and the occasional book, and the rental fee for SDBs and a PO box.

no grading fees, no packaging, no fancy holders, lables or stickers, no travel to shows, no auction buyer's premiums, no dealers or auction fees, and also no insurance premiums.

Then again, my collection is not at all that impressive, compared to some of the big swinging ones around here. If I were as high profile as them I'd probably be into all that stuff

<< <i>The value of my coin collection and house are about the same yet the insurance on the coins would be over four times what the house insurance is. The coins sit in a SDB. The house sits out side in the weather in the woods and is covered if some knuckle head cuts a tree down and hits it (I came way to close). It just does not make sense to insure the coins. For what it's worth the bank sits on the side of a mountain and if it floods I will have larger issues than coins... >>



It may be more likely that your entire coin collection could be stolen or destroyed inside your home rather than a complete 100% loss of your home. Also your home insurance covers the home, not the land it sits on. So you do need to breakdown the actual value of the house, not the market value of selling your house.

Bumping this thread….

Any new perspectives on the cost/benefit of insuring coins while in an SDB. I currently fully insure but am strongly debating reducing coverage for only in transit.

Funny enough, a tornado hit my bank this week with no damage to its brick building, while the wood frame building across the street is half gone.

@csdot said:

@Boosibri said:
Bumping this thread….

Any new perspectives on the cost/benefit of insuring coins while in an SDB. I currently fully insure but am strongly debating reducing coverage for only in transit.

Funny enough, a tornado hit my bank this week with no damage to its brick building, while the wood frame building across the street is half gone.

Greatest threat to SDB contents is from the government. Would insurance even cover governmental theft?

https://www.msn.com/en-us/news/crime/the-fbi-took-86-million-from-safe-deposit-boxes-an-appeals-court-will-decide-if-thats-constitutional/ar-AA1laueK

Not this again...we have so many insurance threads which are at least useful. We also have several threads about this safe deposit box issue with many uninformed and apocalyptic opinions. Can't we talk about something less controversial, like VaultBox or CAC?

@blitzdude said:

@lermish said:

@csdot said:

@Boosibri said:
Bumping this thread….

Any new perspectives on the cost/benefit of insuring coins while in an SDB. I currently fully insure but am strongly debating reducing coverage for only in transit.

Funny enough, a tornado hit my bank this week with no damage to its brick building, while the wood frame building across the street is half gone.

Greatest threat to SDB contents is from the government. Would insurance even cover governmental theft?

https://www.msn.com/en-us/news/crime/the-fbi-took-86-million-from-safe-deposit-boxes-an-appeals-court-will-decide-if-thats-constitutional/ar-AA1laueK

Not this again...we have so many insurance threads which are at least useful. We also have several threads about this safe deposit box issue with many uninformed and apocalyptic opinions. Can't we talk about something less controversial, like VaultBox or CAC?

The forum police strike again. There's much more to life than cacs. THKS!

I wish I could introduce you to the forum Reading Comprehension Wizard. RD THX RGDS

You speak of the World Trade Center and safe deposit boxes being destroyed there. My hearts go out all for that horrible day. But, I also bought silver dollars and some coins from the vaults and some are graded as 69 and 70. NOT "shipwreck effect" coins either. Just my fifty cents.

@crazyhounddog said:
Insured with a bulletproof safe and a Kimber .45 Raptor.

...and free PCGS fire insurance