Coin Collection Insurance
Numismatics (coin collecting) is quite popular. It involves geography, culture, history, precious metals, economics, monetary laws, politics, and customs. It also touches upon the arts and sciences as it deals with engraving, designing, and even metallurgy.
Homeowners (including condo owners and renters) policies provide extremely limited coverage for property like money, securities, and similar property. This is especially true of collectible coins and currency as they can have a special value that, usually, far exceeds their face amounts. Insurers may restrict coverage for coin collections and similar property because it is attractive to thieves, subject to fraud and counterfeiting, small in size but very high in value, and very vulnerable to destruction.
Coin collectors invest a lot into their hobby and they should be encouraged to seek special protection. A collector has the option of adding additional protection to their basic homeowner protection or buying a separate policy. While arranging for coverage, a coin collector must meet several critical objectives:
- The collector must be able to prove ownership of the property.
- The collector must use a reliable method that establishes the property's current value. Keeping careful and current records is essential to making sure that a loss is properly covered.
- The collector should maintain current inventories of their collection. A written inventory is good, but it could be backed up by photos or even video documentation.
- The collector should also keep independent verification of coin values such as guides and, when warranted, professional appraisals.
The collector should be clear about their coverage. Some important questions to consider are:
- What is the total amount of coverage provided?
- Is the coverage for each individual piece or a single (blanket) limit for the whole collection?
- What is the basis of loss settlement (actual cash value, guaranteed amount, replacement cost)?
- Are there any special storage or notification requirements?
It is very important to keep your insurer informed about any additions, removals, or other changes involving your coin collection. If values have changed, make sure that you tell your insurer to adjust your coverage. A Towne Insurance professional would be glad to assist.