The Effect of Collecting Antiques on your Insurance Premium

Guest Editorial

"Every antique is unique and should be treated as such"

Before we look into the effects of insuring your antiques on your premium, you should know that in terms of insurance, every antique is unique and should be treated as such – don’t underestimate the value of getting your antiques valued before you get your house contents insurance quote – you’ll either end up underinsuring and losing huge amounts of money should the item get lost, stolen or damaged, or overestimating and paying more than you should for your annual premium.

The value of antiques and art can vary vastly and fluctuate over time, so a valuation perhaps once a decade would be prudent. It’s important that you get a professional assessment, and that you perhaps do a bit of your own research and look into reference books with accurate terms and descriptions that are used and respected professional antique dealers. The Concise Dictionary of Antique Collecting is a fantastic reference book which explains universal trade terms, containing more than 6,500 terms, also referencing to lesser-known terms.

Usually, the insurance valuation will probably be at a minimum of 20 per cent greater than the item’s current sale value which, while it will cause the premium to be higher, ensures that if the worst happens, the pay-out is more accurate. If you’re not happy to pay a higher premium for this security, however, you have the option to ask for 'market valuations' which are gleaned from auction prices, although you should know that this is risky in that if the item needed to be replaced, the resulting pay-out might, in fact, be too low.

It’s also important to understand that not all items are equal in the eyes of your insurer. For example, a piece of furniture dresser valued at $40,000 will generally have a much lower premium than an item of jewellery of equal value, simply because it's much harder and a less likely target for a burglar to steal, or even for you to lose.

Some people under insure in the vain hope that they’ll never be subject of burglary, fire or flood (which surely altogether defies the logic, then, of insuring!), or that they’ll be able to make up the money themselves should the worst come to the worst. It’s vital that you’re aware of the fact that insurers can include a clause in your policy in which they’re legally entitled to reject your claim completely if they suspect that you’ve deliberately or considerably underinsured.

You’d also be wise to check the policy for limits on the amount that can claimed. Most policies do contain a limit to the amount that can be claimed as a whole and also by merchandise type. And there may be restrictions on the circumstances under which certain or all items are lost or damaged.

Please note: This is a guest editorial and as such it is valuable to you as a reader but its inclusion in this web site does not construe any affiliation or promotion of the writer or his affiliates.

If you would like to be the first to receive other articles on collecting antiques and collectibles as they are written for this web site click here to subscribe. Please forward this article or our web site address to someone who might enjoy it and don’t forget to add us to your favorites! Thank you!