20 April 2011
Insuring your collection - are you adequately covered for any eventuality? Brian Howes looks into the world of insurance for diecast collections and offers his ‘Top 5 Tips’. ...
**This is an excerpt of the article 'Are you covered?' first published in Collector Gazette's May issue.
Insurance is a subject many collectors put to the back of their mind, hoping that the risk of a house fire, flood or burglary etc will never effect them.
The fact is, however, that any of these misfortunes could quite easily strike a collector at any time without warning and with the value of diecast models constantly rising, you could end up seriously out of pocket without adequate insurance cover.
Toys can be great investments and buying quality obsolete diecasts can be a far more rewarding alternative to saving cash in the bank these days with interest rates remaining poor. Many people do just this so it could be your long term investment that’s at risk, not simply a cherished toy collection...
What can I do to help?
1. Keep an up-to-date inventory of your collection. This can be important when working out the value of lost or damaged models. Update this inventory on an annual basis adding all new acquisitions and deleting any models swapped or sold. By doing this you can estimate the value of the collection year-on-year.
2. Keep photographic records of your collection and, if in digital format, back the photographs up onto a memory stick. Having photographic evidence of lost or missing items can prove invaluable in the event of a claim being made.
3. Keep all receipts from auction houses, retailers and dealers so you can prove ownership of specific items – especially expensive individual models.
4. Install an adequate alarm system that is recognised by leading insurance companies. This could considerably reduce the cost of your insurance premium.
5. Install good strong window locks, door locks and use locked display cabinets for valuable models. In the event of a claim you will be able to show your insurer that every possible step was taken to avoid theft from your property.