Hello! I'm Dan Lyles with Lyles Insurance. And in this video, we're going to go over the right way and the wrong way to insure your collectibles.
It's important to insure your collectible items of significant value just like it's important to insure any type of property of significant value. However, when it comes to collectible items, insuring them properly involves making right choices versus making wrong choices. And if you're not aware of the pitfalls to look out for, it's real easy to make the wrong choice. And that's what this video is about, is to give you a heads up and let you know what those pitfalls are to look out for.
First, let's go over the wrong way to insure collectible items. Insuring collectibles as attached scheduled items on a homeowners or renters insurance policy has many shortcomings. And this is where most people make the mistake. There are several problems with an attached policy. It has exclusions that are not found on a good collectibles policy. They only pay claims on an actual cash value basis (meaning just its market value). It almost always has a deductible. Very few policies will ever offer a zero deductible policy if
it's attached to another policy. And it doesn't offer additional coverages that a good collectibles policy does.
So now let's go over the right way to insure collectibles. A standalone exclusive collectibles policy offers much better coverage than one that's attached to another policy. And like I
mentioned before, there is little to no difference in premium between a good policy and a lousy one. So it makes it a no-brainer to go with better coverage for about the same price.
Here are some reasons why an exclusive collectibles policy beats an attached policy. It pays claims on an agreed value coverage basis, which means you know up front exactly what your items are being insured for. It offers zero deductible option, which of course is your out of pocket expense. It does not have those crazy exclusions that you'll see on an attached homeowners or renters policy for collectibles items. They offer extra types of coverage that you won't get on an attached policy. And you don't have those maximum coverage limits like many attached policies do.
Now, there are several very good companies out there who will offer standalone collectibles
insurance with the right coverages for the right price. My personal favorite happens to be American Collectors Insurance. Now I'm a little biased because my agency has carried them for several years. But I'm very happy with them. They're the leading company in collectibles insurance and they offer all the top coverages for very little premium. And as you see here,
the yearly premium is usually less than 1% of the total insured value.
Here are some other major benefits of insuring with American Collectors Insurance. First, they have excellent claims handling service by people who specialize in collectibles. They don't require appraisals where most collectors companies do. They offer inflation guard protection, in which your actual agreed value coverage increases yearly. This is a big one because it helps offset inflation, and it will also help if you have an item that appreciates in value. And they cover things that a lot of attached lousy policies won't cover. Examples include accidental breakage, fire, flood, theft, hurricane, earthquake and other things. You've got to look on the policy to see what's covered and what's not to really tell the difference between a good policy and a lousy one. And also, American Collectors Insurance
provides coverage while your items are being shipped, stored outside of your residence, or used for special occasions.
Here's a list of the items that American Collectors Insurance insures. It isn't all exclusive, but it's the vast majority of them. And as you see, that they're willing to insure a lot of things. You can see a lot on this list.
As far as things that American Collectors Insurance does not insure, only a few things: jewelry, furs, furniture, fine art and also items that you use for commercial or business purposes. But other than that, they'll insure just about any other collector's item.
So I hope you've learned what you need to know about insuring your collectible items properly. If you'd like some more information, I've listed my collectibles insurance webpage from my website on the top link. Or for those of you who live in the territory that I'm licensed in, which includes Ohio, Indiana, Michigan, Pennsylvania, Virginia or West Virginia, if you'd like for me to run you a quote, I'd be happy to do so. I've also provided a link to my quote form or I've also added my phone number, if you'd rather give me a call. Either way would be just fine. And I'll be happy to help you. Thanks for watching. And have a great day!
Link from video: Collectibles Insurance Quote
Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..