Is your coin collection insured in the event of a loss?
Thieves have targeted coins for centuries, and rising gold and silver prices have only strengthened that connection. Coin collectors, consequently, must take extra precautions to protect their collections. But thieves aren't the only threats to your shiny coins. A house fire, for example, could destroy a collection.
Think your collection is covered under your home insurance policy? Not so fast. Your collection may be partly covered by your homeowners policy's contents coverage. That's what helps replace the possessions inside your house in case of a covered claim. However, the coverage limits for currency or collectibles can be as low as $200.
That leaves serious coin collectors with two major options: scheduling an endorsement to their existing home insurance policy to increase the coverage limit for their coins or purchasing a separate policy – called a personal articles floater. Each has its advantages:
Adding an endorsement to an existing homeowners policy usually costs less and consolidates your coverage. You pay one provider and you file claims with one provider.
A personal article floater is generally sold by a company that specializes in a specific type of coverage. Usually these policies include all-perils coverage as well as protection for your collection outside the house (if you are taking it to a show, for example).
Insuring your collection is low cost and you typically won't even have to pay a deductible. Like home and auto insurance, it might benefit you to shop around first. Research customer reviews, coverage options, and compare quotes so you can be sure you are getting the best policy available to you.
Know what you have
Regardless of which option you choose, it's a good idea to have your collection professionally appraised. It's helpful to know the full value of your collection and your insurance provider may require documentation when it comes time to insure the collection.
Some other steps to take:
- Take inventory of your collection and make a detailed record of each coin. You should record the value of the coin and may want to even include pictures. This will not only help you keep track of the items in your collection, but it will make filing claims a smoother process.
- Always refer back to your policy. From acquiring new coins to your collection to appreciating in value, you may need to adjust your coverage limit to make sure it's fully protected.
- Consider storing your coins in a safe or a place that isn't easy for thieves to get into. Fireproof safes can be a great option.
- Bolster your home security. Installing a home security system is a good idea no matter what you collect. Home security systems are a sure deterrent to intruders and installing one in your home can qualify you for discounts of up to 20% on your home insurance policy. Even deadbolt locks add a level of security, and they can mean discounts of up to 5%.
Every coin has a story, so make sure your coin collection tells a happy story. Keep it safe from anything man and nature can throw at it.
This article was contributed by Samantha Alexander and Carrie Van Brunt-Wiley, contributors to the HomeownersInsurance.com blog. The HomeownersInsurance.com blog serves as a resource center for insurance consumers and homebuyers across the country.
This is a guest article. The thoughts and opinions in this piece are those of their author and are not necessarily the thoughts of the Certified Collectibles Group.