As affluent individuals gain valuable assets, insuring collectibles protects their value for generations to come. In this remarkable true story, a Vault Insurance customer discovered an invaluable collection within their recently purchased historic home. With the help of Vault Risk Services experts, they were able to appraise and secure collections insurance for the priceless items.
Verified Market Reports estimates the global collectibles insurance market will reach $45.7 billion by 2027, with a compound annual growth rate of 5.5%. Rising personal asset values, insurance awareness, and affluent income growth contribute to this trend.
But these collections may be vulnerable to financial losses. Many collectors neglect to insure their items or update their policies once they're in force. Appraising value and updating your collection inventory and policy insure they remain protected.
A Vault customer purchased a historic home once owned by a relative of a famous inventor. The inventor had several patents and made great contributions to technology. He often sent memorabilia to the home for safekeeping. Even as ownership changed, this extraordinary collection remained at the house.
Soon after moving in, the new homeowner discovered the collection, left in the basement as it passed between owners. Included among them were whiskey party favors from a royal wedding, a letter from a president, and prototypes of famous inventions.
Recognizing how significant the items were, the homeowner contacted Vault Insurance for help. Vault Risk Services dispatched an expert to assess the collection. Our Risk Services Specialist documented and assessed values for each item.
Among the items was a locked safe, which had remained unopened for many years. The owner had no idea what was inside, if anything. The owner had at first not been concerned about the safe or what may be inside, but our Specialist wanted to leave no stone unturned.
Vault enlisted a professional locksmith to open it, revealing more items of historical value. Without having assessed the safe’s contents, the collections policy may have been inadequate.
Historical, one-of-a-kind items are notorious for their difficulty in appraising. How can you set a value for something that cannot be replaced?
Through intensive research and consulting with outside experts, our Specialist gathered the information needed to get coverage for the items.
After the appraisal, Vault Insurance helped the homeowner get a specialized collections insurance policy. This provided comprehensive coverage tailored to protect the unique collection above the amount provided with a homeowners policy.
Besides providing the owner with peace of mind, our Specialist also helped establish mitigation practices to keep the items safe from damage.
Collections insurance is a specialized policy designed to protect valuable assets and collectibles. Typically, these items aren't covered under standard homeowners or renters insurance because they exceed homeowner policy limits. A collections insurance policy protects against risks such as theft, damage, and loss.
Vault Insurance customizes its collections policies to cover various types of collectible items. Some of the most common categories include:
Related: Protecting Fine Jewelry: 5 Ways to Keep Priceless Jewelry Safe
Homeowners insurance provides some coverage for personal property. Yet, it often falls short for high-value collections. Standard policies usually have coverage limits and exclusions. For example, homeowners insurance may cap the amount payable for jewelry or art.
Collections insurance offers a solution. It provides the necessary coverage to protect high-value items to their full value.
Vault's Risk Services Specialists take meticulous care and a comprehensive approach to protect our customers’ legacies. Integrating a specialized collections policy provided the customer with several significant benefits:
Proper appraisal is essential for insuring high-value collectibles. Regular appraisals ensure the insurance amount matches each item's value. This prevents underinsurance issues.
A current appraisal and detailed documentation simplify the claims process. Providing clear evidence of an item's value expedites claims and ensures fair compensation.
Regular appraisals allow collectors to adjust their insurance coverage as market values change. This enables them to maintain comprehensive protection and avoid gaps in coverage.
As part of your risk mitigation plan, an annual appraisal and updates to your inventory list are recommended by our experts.
By working with Vault, our customer was able to appraise and insure their priceless items, ensuring protection against potential risks.
Collections insurance provides financial protection and peace of mind beyond the limitations of standard homeowners insurance. It provides specialized coverage for high-value collections.
At Vault, we know risk education and mitigation are key to reducing the severity of loss. Protecting your assets is more than insuring them, it’s looking at the bigger picture to reduce all possible risks. We provide all-encompassing risk management services to help proactively safeguard the life you’ve built – that’s the Vault difference.
Request a quote and experience the Vault difference.
Related Products: Collections Insurance
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