On the day Miriam received her luxurious fur coat and pearl earrings from her beloved husband on their 50th wedding anniversary, she knew she’d have to insure them against damage or theft. However, her home owner’s insurance policy does not cover the price of higher end items. She’d need to insure them separately.
Insuring your valuable assets with a specialty policy or higher coverage limits is a popular route for high-end items, as most homeowner’s insurance policies limit coverage amounts. Higher-value assets include items such as musical instruments, art collections, antiques, furs, jewelry, firearms, and your wine collection. Sportmans insure an established tree line on their property when their presence is vital to the ongoing value of hunting parcels. Expect your trusted insurance broker/advisor to inquire about your portfolio of valuables to confirm your policy coverages are adequate. Anything that has worth or value to you can be considered a valuable asset.
Valuable Considerations
Keeping detailed records for your assets is vital, such as receipts of purchase, appraisals, and any publications that support market pricing. These records not only help you properly insure your items providing key item descriptions, authentication of memorabilia, carat weight of gems, or the provenance of a sculpture, but it also helps mitigate the current value of pieces in your collection in the event of theft, damage, or loss. You might also consider utilizing a “collector’s” database program, which tracks and monitors the value of your collection over a longer period of time.
To determine the current pricing of your fine art, artnet.com is the premiere database of auction results in the world to find your specific piece—or one like it. With over 17 million records of art sales, you’re sure to find the current pricing you need.
For your wine collection, using cellartracker.com or similar tools can easily track your collection online and allow you to quickly view its value. This particular database is wonderful when maintaining your frequently fluctuating cellar or making an in-kind donation of a few bottles to a favorite charity to auction off at their next fundraiser event.
If you’re looking for a reputable insurance company to insure your art collection or any musical instruments such as your Steinway baby grand piano or your Les Paul signed vintage guitar, consider huntingtontblock.com, an agency specializing in insuring art and musical instruments. Visit here to read about the risks of insuring your art, especially when it’s in transit or on loan to a museum.
Other Items to Insure
Along with your luxury items and high-end valuables, there are other items you’ll want to consider covering, such as golf carts, segways, ATV’s, snowmobiles, watercraft and more. Precise documentation for these items is also key, and you can read more about exactly what you’ll need in your file cabinet by reading our blog on the subject: Stay Afloat – Key Records are Your Life Vest.
Insuring your high-end valuables not only gives you peace of mind, but helps you determine the value of your entire collection should you wish to sell them, donate them, or bequeath them to loved ones in your Will.
Choose to Insure or Self-Insure
By making the decision to self insure, you forgo purchasing an insurance policy from an outside company, and instead accept the risk of loss and financial impact yourself. Choosing to self-insure could include setting aside or considering your ability to cover the financial impact of a loss, theft or damage to an asset.
At Organized Instincts, our daily money managers help you wrap yourself in the luxury and value of your high-end assets. Send us a message to discuss how a daily money manager can get you on the right track by helping you fully enjoy your collections.
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