Insurance, Ignorance Placing Collections at Risk

Originally Posted by Sports Collectors Daily on May 20th, 2009.

Despite the economic downturn, research from Halifax Home Insurance shows over three quarters (78%) of homeowners want to hold on to their valuable collections rather than reap the profits but many don't have proper coverage and almost half don't know what their valuables are worth.

According to the European-based survey, one in ten have no home contents insurance to protect valuables and three quarters have never had their antiques or collectables valued by an expert

In a poll of 2000 homeowners, two thirds (67%) said they had potentially valuable collections in the home ranging from antiques and artwork to stamps, comics and memorabilia. 38% assumed their valuables were covered, but admit they do not really know the policy details.

"Although in many cases collectables are unique and irreplaceable, most people would at least want to recoup any financial loss in the event of them being stolen or damaged," said David Rochester, head of unverwriting for Halifax. "We'd recommend anyone who has a potentially valuable collection to get it valued by an expert every two years and ensure they obtain a dated copy of the valuation certificate."

The research found around a third of respondents consider their collections to be family heirlooms and want to pass them on to their children or other relatives, and almost one in five (19%) are holding on to them in the hope that they will increase further in value. Almost a quarter of those surveyed (22%) said they'd like to sell their valuable collections, either to make a profit or to de-clutter the home.

The company offers tips for protecting sports cards, memorabilia or other collectibles:

• Collections can be worth far more than people realize, so ensure they are valued regularly

• Make sure you tell your insurer about any items of particularly high value, and keep any valuation certificates or receipts in case you need to make a claim in future

• Ensure collectables such as art, antiques and comic books are stored in a safe secure place and away from damp or anything else that might cause damage

• Avoid displaying valuable collections in conspicuous places such as on living room windowsills as this can be an advertisement to opportunist burglars

• If possible keep valuable collections in a safe or lockable cabinet in order to deter thieves

Take photographs of your collectable items as these can also help insurers to process your claim more easily.