Collectibles Generate Big Business For Agents Serious collectors need specialized coverage for toy trains, dolls, classic cars
Teds shuffling around in the attic of his mansion. "Come on up," he grunts, barely audible. Eager to finally put his homeowners policy renewal to bed, you rub your hands, grab the handrail on the back stairs and make your creaky ascent.
You poke your head through the doorway, and come upon, yes, a Lionel train-set fantasy come to life. Tedsmiling, with hands on hips and sporting a conductors hatis surrounded by hundreds of different model trains arranged in various states of transportation amidst miniature plastic mountains, faux rivers and trees.
While you may be a bit startled, whatever you do, dont leave Teds railroad bliss. Instead, walk up to him and say, "Ted, weve got to insure your collectibleslike now, soldier!" Ask him what other collectibles he has, as well. Who knows, he may have a restored Bentley under a tarp in his three-car garage.
Much like numerous other high-net-worth consumers, Ted is part of a vast market of people who pursue their passionate hobbies of collectibles and collector cars. He represents a potential gold mine.
Identifying and capitalizing on such opportunitiesin conjunction with a clients commercial and/or personal lines coveragewill make you a smarter agent, because youll be providing stronger, more effective protection. And by tapping into this growing niche, youll create more business for your firm.
Collectibles represent a $30 billion market. Everyone has a hobby, and whatever it may bewhether it involves collecting dolls or antique Corvettesit needs to be insured. Its a market that was formerly in the shadows, but now is seeing increasing exposure.
The bottom line is that collectibles coverage is tailored to meet the risks specific to the collectibles/collector car markets as well as the collectibles/collector car owner. The protection is generally a better value than adding coverage on a standard homeowners and/or auto policy. Specialty policies provide more value for consumers because these policies are tailored with features that collectors need and want.
Collectibles insurance is designed to protect the treasures that people collect and store in their home or on their propertyitems usually not adequately covered by homeowners insurance. Figurines, dolls, teddy bears, vintage toys, model cars, miniatures, collector plates, ornaments, animation art, Disneyana, model railroads and carousel animals are considered insurable collectibles.
Youll discover that a collectibles policy is a simple sell and a way to please your client, because youre talking to people about something that means a lot to them.
Make use of managing general underwriters or managing general agents for guidance. Theyre the specialists who focus completely on this market.
One major collectible is collector cars, and there is specialty insurance available to cover all sorts of automobiles. Generally, a vehicle qualifies as a "collector" car if it is at least 15 years old, garage-kept, and driven on a limited basis for hobby and pleasure use.
To capitalize on collector car opportunities, an agent should ask homeowners or auto clients at renewal time if they own a vehicle that is a collectible. Also, ask business clients if they own or plan to own a collector car, because many people desire a "dream" car of their own.
Make sure your agency Web site notes you can insure collector vehicles. Consider sponsoring a collector car show or parade, or speaking at a car club meeting.
Ask collector car buffs you meet what type of homeowners and personal auto insurance they have. Explain that they likely could save money and get broader coverage if they insure their collector vehicle(s) under a stand-alone collector car policy rather than on a traditional auto insurance policy.
Make sure your clients know the difference between agreed value, actual cash value and stated value. They should be aware that agreed value is the only way to guarantee their vehicles value.
Call or visit auto restoration hot-rod shops in your area. Car collectors often ask owners of these shops about insurance for their prized possessions. Supply the shops with business cards and brochures.
For agents, hobbies can be big business.
Laura Bergan is marketing director with Cherry Hill, N.J.-based American Collectors Insurance Inc., a managing general agent specializing in collectibles insurance and collector-vehicle insurance. For more information, contact her at laura.b@americancollectors.com or check out www.AmericanCollectors.com.
Reproduced from National Underwriter Edition, December 3, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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