Collectors are the experts when it comes to curating their valuable treasures. But when it comes to figuring out how to insure collectibles and protect the investment those items represent, agents are the best resource. From rare autographs to sports memorabilia to one-of-a-kind works of art, many private collections are insured under standard homeowner’s policies – and that can be problematic.
The property insurance market currently faces unprecedented challenges. Catastrophic weather and natural disasters have led to skyrocketing insurance claims. In response, insurance providers are increasing premiums, implementing more stringent underwriting guidelines, and – in some cases – exiting the most challenging locations altogether. A recent article from Intelligent Collector, the leading publication for collectors of fine art and other valuable items, offers timely insight into the insurance market and makes the case for choosing specialized collectors insurance over homeowner’s insurance to protect your client’s financial investment.
Authored by James Appleton, MiniCo’s Director of Program Sales and an expert in fine art and collectibles insurance, the article lays out the risks facing collectors who insure high-value collectibles under a homeowner’s policy rider in today’s pressurized property insurance market, “Depending on where your home is located, one claim could result in a significant premium increase or the loss of your insurance policy altogether.”
The Shift in the Homeowner’s Insurance Market
The article outlines the current turmoil in the property insurance market and the challenges now facing insureds needing coverage for property, both residential and commercial. Due to increased catastrophic weather events, rising property values, and inflation in labor and material costs, insurance carriers must reevaluate and adjust their risk profiles, which has translated into higher premiums, increased deductibles, increased scrutiny. Claims forgiveness is much harder to come by, and accounts with more challenging claim activity are being declined or nonrenewed with greater frequency.
For collectors who insure their valuable items under a homeowner’s policy, this presents a significant challenge. In the current property insurance market, making a single claim against the policy — whether for damage to the structure or a loss of a collectible item — can result in a steep increase in premium and possibly a nonrenewal. But that’s just one factor to consider when it comes to insuring high-value collections.
Specialty Collectibles Insurance Is A Better Solution
As Appleton points out in the article, a specialized solution may be the right choice for your clients who are collectors. He notes, “Specialty monoline policies are designed specifically to protect valuable collectibles, and the benefits extend far beyond reducing the risk of increased homeowner’s premiums.”
Benefits of Choosing Monoline Collectibles Insurance:
- Valuation of items for their full collectible (appreciated) value.
- All-risk coverage that typically includes accidental breakage, loss in transit, items stored away from the primary residence, and mysterious disappearance.
- No deductibles or sub-limits.
- Simplified application process, often with no (or limited) requirements for scheduling items or providing appraisals prior to binding coverage.
- Claims made against the collectibles insurance policy have no impact on a homeowner’s policy.
Protecting Your Clients With Trusted Collectors Insurance
As the property insurance market continues to evolve, your knowledge and expertise is key to identifying insurance products that best serve your clients. MiniCo’s exclusive monoline Fine Art and Collectibles insurance program is an ideal solution for serious collectors. Ready to learn more? Contact James Appleton or get a quote through our streamlined application portal.
