Insuring Coin Collection

Answer:

Your coin collection is probably covered to some extent under your homeowners/renters insurance policy. However, most home insurance policies set limits for certain types of personal property (e.g., collectibles). As a result, your coin collection is most likely covered for only a limited amount.

Unless otherwise specified, most home insurance policies offer actual cash value coverage for personal property. This means that if your coin collection is ever destroyed, you will be reimbursed for an amount equal to the replacement value of your collection minus depreciation. In other words, you'll most likely get less than what it would actually cost to replace your collection. You can try to purchase replacement cost coverage, which reimburses you for the cost of replacing your collection without taking depreciation into account. However, many policies will not offer replacement cost coverage for antiques (items more than 25 years old).

If you find that your home insurance policy does not provide adequate coverage for your collection, you have a couple of options. First, you can purchase a floater, which provides you with broader coverage. Or, you can purchase a stand-alone policy designed to protect valuable collections. Some of these stand-alone policies offer automatic coverage for newly acquired collectibles for a limited period of time (e.g., 90 days).

Above all, be sure to review your insurance periodically to make sure that you have the right amount of coverage for your growing collection. The value of your collection can change quickly due to market conditions.

Note: Keep in mind that insurance companies will often require you to have your coin collection appraised when you purchase a floater or stand-alone policy.