Stamps, baseball cards and rare books are just a few items that people
collect, but there are thousands of items some people never think of
as collectables. In fact, you’ve probably seen people who collect hub
caps, shot glasses and buttons just to name a few. Collections are as
varied as the personalities of the people doing the collecting. No
matter what your collection consists of, it goes without saying it’s
valuable to you, and because you value it, insuring your collection is
important.
Create an Inventory List
When getting insurance for anything, the first thing you need to do is
take inventory. This helps you keep track of how many items you have
and which ones you want to insure. Be sure to list each piece
separately, too. Mark down the condition of each piece and should a
single piece get damaged, you can get it replaced or fixed without
making a claim on the entire collection. Assign a number to each piece
in your collection, which in case of theft, you’ll be able to
determine exactly which piece is missing.
Purchase Additional Coverage
Your best option to start with is to purchase insurance for your
collection through your homeowner’s insurance. Don’t make the mistake
of assuming your valuable collection is already covered. Too many
homeowners found out too late the insurance they had wasn’t enough.
Your best bet is to get an extra policy or increase the amount of your
policy to cover the cost following a catastrophe.
Regularly Evaluate Your Collection’s Worth
Certain collectibles will increase in value over the years. Pieces of
art, rare books, and sports memorabilia will increase as time goes on.
Stay up to date with the current value of your items and adjust your
insurance policies accordingly. Once in a while the lucky collector
finds he has a piece of pop culture that suddenly skyrockets. For
instance, the value of Elvis memorabilia and albums increased in the
days following his death. Normally, this increase in value will only
last a short time, but it’s best to increase your insurance while the
items are popular.
Find an ‘Admitted’ Insurance Company
An admitted insurance company is one backed by your state’s insurance
department. If the company goes bankrupt or experiences financial
trouble, your policy is still in effect as the state insurance
department becomes a guarantor of the policy. It’s an extra precaution
that could pay off in the end.
Collectibles hold both a sentimental and monetary value for you and
your family. Many collections contain valuable family heirlooms,
handed down through the generations. Others collect things from
childhood. When either of these types of collections are lost, stolen
or destroyed, the effects are devastating to the individual or family.
While an insurance policy can’t replace the sentimental value, an
insurance policy can help replace a collection with replicas or begin
a new collection. Either way, it’s a good idea to invest in your
investments with an insurance policy. Give yourself the added peace of
mind.
extract in http://www.myinvestmentadvice.info
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