Tips for Insuring Your Collection:
If your home was to suffer a flood, fire or burglary, would your stamp collection be covered under your insurance policy? Some homeowners mistakenly believe that their home insurance policy provides full coverage for such a collection. The truth is, many standard home insurance policies offer some coverage for a stamp collection, however it is very limited and often not enough to protect a valuable collection.
Here are some important steps for protecting your stamp collection up to its full value:
#1 - Get it Appraised
Even if you have a good idea of what your stamp collection is worth, it will be necessary to have your collection appraised by a professional in order to document it’s true value. An insurance carrier will ask for a copy of your appraisal before selling you a policy.
#2 - Determine Existing Coverage
As mentioned earlier, if you have a home insurance policy you may have some coverage for your stamp collection. However, many insurance carriers place limits around $1,000 for replacing stamps lost in a covered peril. Find out exactly how much coverage you currently have so that you know how much additional coverage you will need.
#3 - Shop Around
You have two policy options for insuring your collection. The first is to schedule an endorsement on your existing homeowners insurance policy which would extend your current coverage to the full value of your collection. The second is to purchase a separate policy called a personal articles floater from a specialty insurer. Either way you will want to make sure you have sufficient coverage to replace your collection to its full value in the event of a loss. In addition to price, compare coverage limits and covered perils from one policy to the next to make sure you are getting a policy that works for you.
#4 - Document your Collection
Even with an appraisal you should also perform an inventory of your collection so that you can provide additional proof of ownership in the event of a loss. Include photographs and copies of receipts to keep with your inventory. If possible, keep the inventory in a safe place outside of your home so that in the event of a disaster it does not perish along with your collection.
#5 - Do a Review
Whether you are a beginner or an expert philatelist your collection will likely grow in value as you add to it. Do a regular check of your policy to make sure you are always insuring your stamp collection up to its full value.
#6 - Keep it Safe
While a solid insurance policy will protect your collection after a loss it’s always a good idea to take extra precaution to avoid loss in the first place. Keep your collection in a fire and water proof locked safe to keep it safe.
If you need additional information, a licensed insurance agent is your best source of information about keeping your collection adequately covered.
About the Author:
Carrie Van Brunt-Wiley writes on a variety of finance related topics and contributes to the HomeInsurance.com blog.