Coverage for collectibles equals sales

Millions of Americans collect. In addition to ever-popular collector vehicles, valued collectibles today include action figures, advertising memorabilia, animation art, automobilia, books, brewery signs, coins, collector plates, comic books, die cast cars, dolls, figurines, guns, jukeboxes, militaria, model trains, ornaments, quilts, sports memorabilia, stamps, trading cards, teddy bears and wine. You name it, and there's likely a collector—and a collector club—for it.

While collecting has been around for centuries, the Internet has enhanced Americans' longstanding passion for buying and selling what most interests them.

But many agents mistakenly overlook the extensive, expensive and often uninsured collections that many Americans have in their homes. In the event of a claim, collectors encounter these problems when they rely on homeowners insurance, which:

• Often imposes a sub-limit for valued collections
• Covers perils of fire, lightning and windstorm—but excludes risks of accidental breakage, flood, hurricane, earthquake, water damage and mysterious disappearance
• Pays claims for contents based on depreciated value or actual cash value. (Not all collections appreciate in value, but often collectors expect their collection to increase in value or at least maintain value.)

Policies for collectibles can supplement homeowners coverage for consumers. A collectibles policy likely provides better protection to the consumer in key ways:

1. Collectibles policies provide agreed-value coverage. Collections are insured for their full collector value (including accessories such as packaging), without depreciation.
2. Coverage can be extended via endorsement to apply to items while being shipped (great for internet buyers), and even if the collectible item is used occasionally (such as an antique violin or Lenox china collection).
3. The specialty policy provides automatic increases in insurance value for scheduled items on a periodic basis.
4. Collectible policies cover one or more collections. For example, the husband's basement room full of antique gas station signs and the wife's Precious Moments figurine collection are both insured with one contract.
5. Covered are a broader set of risks (including water damage, for example).

 Here is a summary of the differences:

Note: A specialty collectibles policy is not the same as a personal articles floater for appraised items such as art, antiques, furs and jewelry. Unlike personal articles floaters, most collectibles policies do not require appraisals or inspections.

Insurance professionals who query consumers about their most-valued possessions put themselves in a position to create or enhance their customer relationships.