Collectibles - Stamps, Coins, and More » Collecting Tips

Special valuables require special insurance

Jennifer — Sun, 07 Jun 2009 02:58:29 +0000

Specialty insurance covers everything from original artwork to engagement rings to rare book collections -- even a million-dollar wine collection.

(ARA) – If you’re remodeling or redecorating this season, you’re probably also buying some goodies to spruce up your home — like an antique dining set, original artwork or a high-end oriental rug.

Insurance experts warn that your homeowners or renters policy often won’t replace higher value items if they’re damaged or destroyed. Similarly, your policy might not cover your most unique or sentimental possessions.

Special items warrant special coverage
For unique and hard-to-value possessions, it’s best to go with an insurer that specializes in such items, says Jaclyn Krywar, who works for QBE Specialty Insurance. The insurer covers everything from engagement rings to rare book collections, your grandmother’s brooch or the Lladro collection in your living room hutch — even a million-dollar wine collection.

“A company that specializes in underwriting valuable articles can provide the most competitive pricing, broadest policies, and in the event of a claim, accurate estimates for replacing or restoring an item,” she says. “Specialty insurers can also provide more flexible, tailored coverage than a standard homeowners’ insurer and with no deductible.”

For example, if you have a decadent wine collection, QBE Specialty’s wine policy includes risks that aren’t often covered, like breakage, label restoration and spoilage due to mechanical breakdown of a cellar. And if you have historical memorabilia or a fine art collection, Krywar’s company would cover the risk of lending these to a museum as a loan or on exhibition.

Your homeowners or renters policy often won't replace higher value items if they're damaged or destroyed.

For off-beat and sentimental items, like your family heirloom Civil War rifle or that costume from Star Wars you bought on eBay, you’ll likely need a specialty insurer in order to find coverage. However, Krywar says most specialty policies protect more common valuables like a family’s wedding china or silverware, a few paintings and a small jewelry collection.

“Large or small, and even if you can’t put a value on it, be sure to insure it,” she says.

A floater could float you
Another option is inland marine coverage (often called a “floater” or “scheduled personal property”) that’s added to your homeowners or renters policy. This will boost your limit and broaden your “cause of loss” for specific items.

Why is that important? Take a wedding ring. The average cost of a diamond ring is almost $4,000. But if it’s stolen your standard homeowners policy would probably only cover about $1,000. And on a standard homeowners or renters policy, jewelry is covered for “named perils” like fire, theft or lightning. When scheduled separately, it’s covered on an “all-risk” basis, even if you drop your diamond into the running garbage disposal.

“Jewelry is valuable, and it’s easy to lose and easy to steal,” says Jonathan Farris, assistant vice president at QBE Regional Insurance. “When it’s scheduled, you can rest assured that it will be covered no matter how it’s lost.”

Farris adds that most consumers find the cost of scheduling to be very reasonable. For example, to cover a $3,000 ring costs about $30 a year on a policy from QBE Regional’s General Casualty or Unigard brands.

When deciding which items to schedule, the experts say to consider anything valued over $1,000 or any group collectively valued over $2,000 (think china set).

“Schedule items you couldn’t afford to replace on your own,” Farris says. “And consult with your independent insurance agent to make sure your most prized possessions are adequately protected.”

Courtesy of ARAcontent

Antique Appraisal Tips

Secrets of Successful Collectors

Jennifer — Fri, 13 Jun 2008 13:18:51 +0000

From Star Wars stamps to Pez dispensers, collectors all over the world scour everything from auctions to antique festivals searching for pieces equal to the “holy grail” in their collectible categories. What drives them? For some, it’s the thrill of the hunt. For others, it’s having the most prized possession in the palm of their hands. For all, however, it’s the camaraderie amongst like collectors looking for that same big find.

For the avid collector or amateur, the world’s most devout — fanatics of Fiesta Dinnerware — share their secrets to building a collection that will make your collecting comrades green with envy.

Determine your goals
There are two goals in collecting: buying what you love and buying what will resell at a higher price. First, determine if you love to collect this item or if you plan to buy, sell or even trade. Then collect accordingly, says Wendy English of Arizona. English is literally “driven” by her love of Fiesta. Vanity plates on both her vehicles are: FIESTA1 and LVDISHES.

Pick your passion
People start collections for as many reasons as there are items to collect — nostalgia, as a means of investment and carrying on a tradition. For Harvey Linn of North Carolina, it’s personal. He ate off of a Fiesta plate (always Cobalt blue) at his grandmother’s house in the mid 1960s. With her passing in 1986, he found that same, now vintage, plate and became a collector of his grandmother’s beloved dinnerware.

Do your homework
If you don’t know much about the category you’re collecting, you might be duped when purchasing a coveted item. Know the value of certain items, how rare they are compared to others and what conditions are acceptable for resale, especially if you plan to sell or trade.

Make friends
What better way to find the latest and greatest information about your collectables than from your peers? Join a club dedicated to your desires. You’ll find everything you want to know about the category and you’ll make friends that share your passion.

Display the prize
Don’t make the mistake of storing items in a cardboard box in the garage. Maintain them by keeping them out where you and others can enjoy them. And what better way to keep inventory of what you have and need? However, be sure to keep fragile and extremely rare items behind glass or in cases to keep them from being broken or soiled.

Display by theme, style or time period
To create an eye-catching display, look for commonalities like color or time period. English collects only vintage pieces and displays them by the place setting in her kitchen. “I have a set in every color, except Sapphire,” she says. While shelving or cabinets are ideal, some collectors designate entire rooms to their collections. “It really depends on the size of your items, and overall collection,” adds English.

Don’t settle
Settling for a specific piece that is less than perfect is a big mistake. For instance, don’t purchase the sugar bowl sans lid — it will surely disappoint. Most collectors buy an item thinking they’ll find the missing lid or accessory, which is rarely the case. Purchase only intact, well-maintained pieces for the best return on investment.

Look for “numbered” items or limited editions
Linn collects for quality, not quantity. “I used to pick up odds and ends,” he says. “Now, I only buy numbered or special edition items.”

Shop “secondary” markets
Linn looks to the Internet, online shopping sites and even blogs for hard-to-find pieces. “I look for items made in a year ending in five or zero,” he says. This year, Fiesta collectors are buzzing about the first of three anniversary collections. Considered an American icon, the brand turns 75 in 2011. “When there is a limited color collection with special back-stamp, it makes the collecting community very happy,” he says. Today, the 75th anniversary mixing bowls are available at retail stores, but next year the item retires and says Linn, “will trickle into secondary markets and become the newest must-have.”

Courtesy of ARAcontent