Americans collect numerous valued items, ranging from actionfigures to Christmas villages. Statistics indicate that sales inthe collectibles industry in America are up 63 percent from 2010 to2011, according to a recent report conducted by CVV, the FrenchAuction Market Authority. The U.S. currently represents 27 percentof the global market share of collectibles. And collectibles arethe largest single group of items listed for sale on auction siteeBay.

The ComicConInternational show—which started 42 years ago as a showcase forcomic books, science fiction/fantasy and film/television—in 2010drew 130,000 attendees to the San Diego convention center. Theconvention has expanded over the years to include a larger range ofpop culture, such as horror, animation, anime, toys, collectiblecard games, video games, webcomics and fantasy novels.

Why does this matter to insurance agents? Collectibles andcollections are personal property that can be underinsured withtraditional homeowners insurance contents coverage. A homeownerspolicy may have, for example, a $2,500 sub-limit (after deductible)for collections. Where there’s valuable property, insurance agentsare needed.

A specialty insurance policy that protects collectibles isinland marine coverage that is distinct from homeowners coverage:It offers agreed-value coverage (rather than actual cash value);insures against flood, earthquake and accidental breakage; and hasno sub-limit to restrict coverage, points out American CollectorsInsurance, a provider of specialty insurance for collectiblesand collector vehicles.

While tastes in collections vary, on the following pages arefive common types of collectibles:

Stamps continue to be one of the most widelyappreciated items, due in part to their accessibility, stylisticvariations and modest pricing. A recent Chinese stamp dated 1882sold at eBay auction for a whopping U.S. $11,300.

Agents who ask consumers whether they own a collection can makea connection with that person about what they value most. Thathelps create and sustain customer relationships. Insurance agentscan start the process of helping prospects and clients by askingtwo simple questions:

1. Do you own any valued collections?

2. What do you estimate their value to be?

Many coin collections begin as a passing fancyduring childhood and develop into a labor of love. Coins fromancient times to the latest from the U.S. Mint are collected today.Coin values are influenced by five factors: scarcity or rarity,condition or grade, value of the precious metals contained in thecoin, demand and quality.

Collectors can make for great clients because they truly valuethe service provided by an agent. The typical hobbyist ispassionate, supplements his or her collection slowly over time, andoften owns items of significant sentimental worth. An agent can tapinto that passion and offer a client the coverage they need.

A recent major milestone—New York Yankees shortstop Derek Jeterrecorded his 3,000th hit with a home run, and the record-breakingball was estimated to be valued at upward of $300,000—drove homejust how valuable sports collectibles can be.Baseball cards are among the most-searched collectibles oneBay.

The ebb and flow of this niche market is dictated by theever-shifting relationship between sports and history. Milestonessuch as records help drive values. There always seems to be anothersports record on the cusp of toppling.

Electric model trains date to 1896. By the1950s, metal toy trains were among the most-owned toys in the U.S.,in part because the end of World War II freed up factories andmetal for toy manufacturing rather than weapons.

Today, train collectors flock to shows and to collector websitesto buy and sell trains, tracks, layouts and more—and dream aboutadding to their own personal or club layout. eBay lists nearly50,000 items related to trains, and the transportation collectiblescategory on eBay is among its largest. The National Model Railroad Association hasnearly 20,000 members worldwide, and all states have local modelrailroad clubs.

Some collectors may believe they need a formal appraisal of atrain or other collection in order to qualify for specialtycoverage, but that isn’t necessarily the case. Some providerssimply require a basic inventory and can offer comprehensiveagreed-value protection.

Dolls have been a popular collectible itemsince the 1850s, when artisans would handcraft wooden figures andpainstakingly paint the features. It’s commonplace for hobbyists toadd to their collections around the holidays by asking for dolls,clothes, houses and furniture as gifts. The industry routinelyprospers in the fall and winter, as well as on key dates throughoutthe year such as Mother’s Day and Valentine’s Day.

In the event of a claim, the homeowners claims adjustmentprocess likely would value a doll collection or dollhouse at actualcash value. For a collector with a dollhouse furnished over a40-year period, a $2,500 check could underinsure the loss bythousands—maybe tens of thousands—of dollars.