When to Buy Antique Insurance

An antique has been defined as any object that reflects craftsmanship and, in the United States, is older than 50 years. Other countries in the world require objects to be older than 100 years to be considered antiques. Valuable objects that cannot be replaced carry sentimental and market value well above the value of their mass market cousins.

While antique insurance is certainly not required as is a more common type of insurance like car insurance (unless of course you are insuring an antique car at Hagerty’s or somewhere similar!), wise antique collectors keep excellent records, purchase specialized antique insurance, and are informed about the insurance coverage requirements.

Antique Documentation Proves Value

Experienced collectors keep the documentation associated with every antique within the collection to prove the origin and stated value of the antique at the time of purchase. All documentation must be kept in a protected environment where natural disasters cannot destroy it.

1. Certificate of Authenticity – Every object accompanied by a certificate will carry a market value that must be insured separately. The certificate creates value within the antique market that adds to the replacement value. Preserve the certificate in an acid-free sleeve to prevent ink deterioration.

2. Professional Appraisal – A written appraisal is required for any antique insurance policy. The appraiser provides a statement of replacement value within the antique market based on availability of similar objects and the rarity of the item. Accurate appraisals are required for coverage of the item to be approved by the underwriter within the insurance company. Acquire referrals to find a reputable appraiser and maintain contact with this person over time.

3. Receipts and Invoices – Every purchase is accompanied by the receipts and invoices that document the history of the antique. When proof of the purchase price many years ago can be provided, the antique retains more value on the market. If the item is removed from the collection and sold, the associated documents would be included with the sale.

4. Visual Record – Pictures and video must be kept current and protected from the elements for access in the event the item must be replaced. Insurance companies cannot dispute the existence of the item when pictures can be produced. Multiple angles of the item will provide the information required to replace the object with a comparable item in the event of loss.

Antique Insurance Rider

Homeowners insurance policies cover the contents of the home up to a certain aggregate dollar amount. Whenever a claim is made against the policy, standard replacement costs are paid within documented categories. Antique items are not covered at the replacement value of the object. A Chippendale chair will be replaced as a simple chair if the appropriate insurance coverage is not purchased.

1. Combined Value – Many insurance agents will recommend insurance for any item that is worth more than $5000. Special consideration must be given to the combined value of all the antiques in the collection. Ten objects worth $1000 each add up to $10,000 so each of these must be insured even though they do not meet the stated per item minimum value.

2. Irreplaceable Objects – One-of-a-kind items have monetary value that can be insured. Specialized appraisal information is required to cover these items because the object does not have a peer for replacement. In these cases, monetary value is assigned to the object and the insurance company will pay that amount in the event of loss. These policy riders are expensive, but for very valuable objects the annual premium expense is considered worth it.

3. Itemized Coverage – For full payment to be made by the insurance company, every antique must be listed separately on the policy. Maintenance of this level of detail may seem cumbersome until something damages one of the valued items within the collection. Detailed descriptions of each item are essential for coverage to be maintained.

Insurance Coverage Requirements

Antique enthusiasts learn quickly about the limitations of standard homeowner insurance coverage. Every collection presents challenges when the collector embarks on the journey to document and insure each item. Sufficient insurance information exists to make informed choices to pay the most reasonable premium for adequate replacement coverage (the Antiques & Collectibles National Association is a great source for detailed step by step information).

1. Specialty Insurance Company – Certain antique items must be insured by companies that specialize in underwriting replacement coverage. The cost of these policies is affordable for those with large collections that will require extensive maintenance efforts.

2. Homeowner’s Policy Rider – Collectors with just a few antiques to insure usually will choose to purchase a specialty rider to cover their collection. For the static collection where the inventory remains unchanged, the rider made be an easier choice. Premiums are included in the annual cost of the homeowners insurance rates.

3. Read the Fine Print – Certain types of damage fall within each type of policy and should be understood by the insured. Water damage may be omitted so the collector must be informed of the policy coverage limitations. Fire, theft, and destruction by natural disasters, excluding floods, are covered under most policies, but the documentation provided with each policy must be reviewed.

4. Add Every New Purchase – Antique lovers will purchase a beloved item at regular intervals throughout the calendar year. Every item must be added to the insurance policy and all documentation records must be updated. Set two dates per year to review the documentation and the insurance policy to validate the coverage of each item.

Maintaining the coverage on every antique in a collection may seem cumbersome until loss occurs. The sentimental value of a beautiful object can never be repaid, but monetary compensation allows the hunt for a replacement to commence. Reputable insurance companies provide rapid payouts in the aftermath of disasters. Experienced insurance agents strive to find better rates when risk pools are affected by increased claims in certain areas of the country. Remember to leverage multiple policy discounts and adjust the policy coverage when antiques are added to and removed from the collection.

About the Author: Patricia is the mother of 2 kids and a part-time writer. She contributes for a car insurance website and a website for comparing insurance quotes. When she is not writing or busing her kids around she can usually be found in her home garden.