Consider Special Insurance for Your Miniature Collectibles



Posted: Sunday, March 25, 2007

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Miniature collectibles are wonderful to collect and display. A miniature collection is a great investment since it has the potential to grow in value. It is also a rewarding hobby on a personal level. The monetary value of a miniature collection as well as the sentimental value makes it important to consider purchasing special insurance to protect your collection.

1) It is a common misconception that homeowners insurance will cover a dollhouse miniatures collection. It is true that homeowners insurance will cover a collection to a certain extent. The purpose of homeowners insurance is to cover the cost of the structure of the home as well as the every day personal belongings inside. A collection can be worth well beyond one’s every day personal belongings. Consider that a homeowner’s policy will cap the amount for personal belongings to 50% of the insurance policy. Then, an additional cap is placed at 10% to cover something such as a miniature collection. Depending on the amount of homeowners insurance, this likely will not cover an entire collection.

2) Private collectible insurance is a good idea if a collection is valuable both monetarily and emotionally. It is a personal choice whether or not to insure the collection. There are some vast differences between collectible insurance and homeowners insurance. Separate collectible insurance will generally cover the replacement value of the miniatures as well as providing compensation if a piece is lost, stolen, or broken. The majority of homeowners insurance will require a deductible that may be more than an individual piece of the collection is worth.

3) It can be difficult to estimate how much coverage is needed to cover an entire dollhouse miniature collection. It is necessary to consider how much each piece would cost to replace. It is also necessary to consider future purchases that will be added to the collection. Private collectible insurance companies will often provide a certain percentage increase on a regular basis to provide for new purchases and increased value of the collection. It may be difficult to take a complete inventory of the collection, but it will be helpful in determining the replacement value.

4) The cost of collectible insurance is derived from many factors regarding the miniature collection. The first is obviously the value of the collection. Another factor includes whether or not the collectibles are being kept in a secure location such as a safe or in a home with an alarm. There are certain other considerations that may lower premium costs including the heating and cooling system in the home where the collection is located. While these do not necessarily need to be met to acquire collectible insurance, it will lower the premium.

It is an important decision on whether or not to purchase special collectible insurance. The most important consideration is the value of the collection versus the cost of the insurance premium. Chances are that it is worth it to pay for the peace of mind. The ability to replace all or part of a collection is invaluable.


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