Personal property that is considered collectible usually requires special coverage under a Homeowners
policy. This is due to severe coverage restrictions on special property. The premiums charged for personal property protected by a Homeowners (including condos
) policy is designed to cover regular furnishings and ordinary property that face an average risk of loss. A regular stove, a chair, kitchen table or bed are no big deal. Such property is common to all homes and they're subject to routine losses. However, special property is vulnerable to higher risk of loss.
What makes property special?
Usually certain circumstances that increase its susceptibility to loss such as:
- Rarity (age or scarcity)
- Small size, but high value
- Appreciating value
- High marketability
- High utility value
Stamps (also called philatelic property) qualify as special property. It refers to postal or revenue (tax) stamps and related material. Such property is very fragile and, due to its high-value and portability, it's a theft target too. Because of this higher likelihood of loss, a regular Homeowners policy may limit coverage to a few hundred dollars, even for a collection that may be worth thousands of dollars. Therefore, separate, scheduled coverage may be necessary.
Stamp Collection Floater insurance covers the following philatelic property:
- Postage stamps
- Stamped envelopes
- Postage due stamps
- Official stamps
- Revenue (tax) stamps
- Match stamps
- Medicine stamps
- Pages and mountings
Insurance protection is typically provided against all risks of physical loss that are not specifically excluded (for example, say earthquake or flood). It may be written on a blanket (a total limit of coverage applies to all stamps) or a scheduled (limits are established for individual items) basis.
While coverage usually applies anywhere in the world, there are limitations. A stamp policy will not cover loss involving wear and tear, gradual deterioration, insects, vermin, or inherent vice, fading, creasing, denting, scratching, tearing, thinning, or transfer of colors, disappearance (of individual items) or damage caused by regular handling, or due to extreme temperatures.
If stamp collecting is a part of your life, be sure to talk to a Towne Insurance professional. The extra protection is well worth the extra expense.