Insuring Collectibles: Do Your Clients Understand the Options?
Your homeowner clients understand the importance of having the right coverage to protect what is most likely their single largest investment – their home. What they may not know is that when it comes to their personal property, most standard homeowner policies don’t provide enough coverage for high-valued or collectible items.
Whether you’re writing a new homeowner policy, reviewing coverages on your existing book of business, or comparing a policy against a competitor, it’s important to talk to your clients about protecting their personal property, especially when it comes to unique, high-valued items and collectibles. Some general talking points can include the following:
- Make them aware that while their homeowner policy will generally provide some protection for certain named risks, the coverage may be limited. For example, it may include coverage for firearms, jewelry, watches, artwork, silver, furs, and antiques, but the limits may be low and not enough to cover the full value of an item should a loss occur. Be sure to ask the right questions to ensure your client’s property is protected.
- Discuss the fact that having a high personal property limit doesn’t necessarily mean they’ll have coverage for losses involving unique and high-valued items. Be sure to explain any available options for purchasing a scheduled personal property rider, endorsement, or floater that will cover these types of items for their full appraised value.
- Explain policy coverage as it pertains to claims involving a mysterious disappearance or sudden loss of a valuable or collectible item. Some homeowner policies limit coverage for these types of losses or may even exclude coverage all together. In any case, it’s best that your clients understand certain circumstances in which they may not have coverage, before a loss occurs.
If after speaking with your clients you find they don’t have enough coverage for high-valued items or collectibles, present the option for supplementing their policy with a stand-alone collectibles insurance policy. For example, when compared to a traditional homeowner policy, MiniCo Collectibles Insurance offers more complete coverage with no imposed sub-limits and pays claims at the full collectible value.