Insurance

[IsaacRN]

I have a pretty extensive sports memorabilia collection that I have often thought about insuring. When talking to normal companies like Allstate and State Farm they never were obliged to insure the collection. I had a conversation with my brother yesterday that said I should look into insuring my razor collection. I figured that I would run into the same problem again. Do any of you have your collection insured, or have a collection of some sort insured and recommend how to do it?

[jnich67]

I have yet to insure my razors (I don't want SWMBO to see how much they're worth!), but my wife has jewelry and other heirlooms insured through state farm at minimal additional cost. You have send them an appraisal or receipt before they add them. I'm surprised you've had trouble.

Jordan

[IsaacRN]

Well im a guy that was renting an apartment, so it wasnt going to be under a home insurance plan. Another problem was that the autographs fluctuate in price...or so the agent told me. I guess ill look back into that when i finally settle down.

[jnich67]

Well im a guy that was renting an apartment, so it wasnt going to be under a home insurance plan. Another problem was that the autographs fluctuate in price...or so the agent told me. I guess ill look back into that when i finally settle down.

Yep, I'm a renter too at this point, and we add extra stuff to our renter's ins. The autograph thing makes some sense though.

Jordan

[ChrisL]

On both a homeowners policy and a renters/tenants policy, you have the ability to "schedule" (the insurance term) personal property; in plain English, this means you and the company are making note of specific items that are distinct from the overall value placed on your personal property (belongings) on either of those policies. Most any collection or type of property can be scheduled. You do pay extra for this.

Most commonly there are two ways that items are valued. Most often the policyholder has the option of selecting one option vs. the other.

"Agreed Value" also known as or similar to "Stated Amount" - This is the more expensive option. This mean you and the insurance company agree that at the time of a covered loss, the insurance company would pay you (less any deductible) the amount AGREED UPON (listed in the policy for that item). Example: A diamond ring insured on an Agreed Value basis for $10,000.

Second option (most common). "Actual Cash Value" or ACV for short. Far and away, scheduled property is insured and settled upon using this method. Some companies only offer ACV on scheduled property. What is it? Let's go back to that $10,000 ring. If insured under ACV at the time of the covered loss, the insurance company can opt to do one of the following:

1) Replace your ring with a ring of like kind and quality whether that's what you want or not and giving you no monetary claim payment of any kind.

2) Pay you a cash settlement (less any deductible) an amount of which is the LESSER OF the following:

• The insured amount listing for that item on the policy (not the agreed amount in this case, but the amount the scheduled item is insured for.
• The book value or actual cash value (the amount it would cost to BUY a ring of like kind and quality at the time of loss).

Going full circle, razors, collections of any type are considered "Personal Property". This means they're automatically covered on a home or renters policy for a peril such as fire without doing anything, without "scheduling" the items. If all the razors, stones, etc burn up, if you have record of them, they're covered. HOWEVER........there are a significant number of items that have limitations on important perils such as THEFT and "Mysterious Disappearance" (diamond falling out of its setting without the wearer noticing when it happened or where the diamond went). Examples of property that have theft limitations (typically the first $1,000-$2,000 even for these items are automatically covered for theft without having to schedule):
Guns
Money and securities
Jewelry
Silverware
Fine Arts
Just to name a few.

Scheduling then, provides coverage against theft for amounts greater than that $1,000-$2,000 limit (depends on the company). Typically items scheduled do not have a deductible or have a much lower deductible than the policy deductible.

So..........do you have to insure your razors separately? Good question to ask. First, arrive at an approximate value of your entire razor collection, then call your agent and ask them to contact an underwriter at the company or better yet request that they contact someone from the CLAIMS DEPARTMENT of that company and ask the following type of question:

"If an insured has a vintage straight razor and sharpening stone collection worth $5,000 and the entire collection was stolen, would that loss be covered automatically under (insert type of policy here) or would he need to schedule the property in order for a claim to be covered?"

It would be a stretch for a company to argue that razors would be considered to be under the silverware category. There is no theft limitation in a standard home/renters policy that states that knives or certainly razors have limited theft coverage.

Some people prefer to schedule collections that PROBABLY would be covered under their standard policy if their company offers the agreed value scheduled option. Why? There would be less to no potential for a hassle disagreement with the company at the time of loss.

Probably more info that you wanted, but hopefully it helps.

Chris L

[ChrisL]

On both a homeowners policy and a renters/tenants policy, you have the ability to "schedule" (the insurance term) personal property; in plain English, this means you and the company are making note of specific items that are distinct from the overall value placed on your personal property (belongings) on either of those policies. Most any collection or type of property can be scheduled. You do pay extra for this.

Most commonly there are two ways that items are valued. Most often the policyholder has the option of selecting one option vs. the other.

"Agreed Value" also known as or similar to "Stated Amount" - This is the more expensive option. This mean you and the insurance company agree that at the time of a covered loss, the insurance company would pay you (less any deductible) the amount AGREED UPON (listed in the policy for that item). Example: A diamond ring insured on an Agreed Value basis for $10,000.

Second option (most common). "Actual Cash Value" or ACV for short. Far and away, scheduled property is insured and settled upon using this method. Some companies only offer ACV on scheduled property. What is it? Let's go back to that $10,000 ring. If insured under ACV at the time of the covered loss, the insurance company can opt to do one of the following:

1) Replace your ring with a ring of like kind and quality whether that's what you want or not and giving you no monetary claim payment of any kind.

2) Pay you a cash settlement (less any deductible) an amount of which is the LESSER OF the following:

• The insured amount listing for that item on the policy (not the agreed amount in this case, but the amount the scheduled item is insured for.
• The book value or actual cash value (the amount it would cost to BUY a ring of like kind and quality at the time of loss).

Going full circle, razors, collections of any type are considered "Personal Property". This means they're automatically covered on a home or renters policy for a peril such as fire without doing anything, without "scheduling" the items. If all the razors, stones, etc burn up, if you have record of them, they're covered. HOWEVER........there are a significant number of items that have limitations on important perils such as THEFT and "Mysterious Disappearance" (diamond falling out of its setting without the wearer noticing when it happened or where the diamond went). Examples of property that have theft limitations (typically the first $1,000-$2,000 even for these items are automatically covered for theft without having to schedule):
Guns
Money and securities
Jewelry
Silverware
Fine Arts
Just to name a few.

Scheduling then, provides coverage against theft for amounts greater than that $1,000-$2,000 limit (depends on the company). Typically items scheduled do not have a deductible or have a much lower deductible than the policy deductible.

So..........do you have to insure your razors separately? Good question to ask. First, arrive at an approximate value of your entire razor collection, then call your agent and ask them to contact an underwriter at the company or better yet request that they contact someone from the CLAIMS DEPARTMENT of that company and ask the following type of question:

"If an insured has a vintage straight razor and sharpening stone collection worth $5,000 and the entire collection was stolen, would that loss be covered automatically under (insert type of policy here) or would he need to schedule the property in order for a claim to be covered?"

It would be a stretch for a company to argue that razors would be considered to be under the silverware category. There is no theft limitation in a standard home/renters policy that states that knives or certainly razors have limited theft coverage.

Some people prefer to schedule collections that PROBABLY would be covered under their standard policy if their company offers the agreed value scheduled option. Why? There would be less to no potential for a hassle disagreement with the company at the time of loss.

Probably more info that you wanted, but hopefully it helps.

Chris L


BTW, RENTERS buy renters insurance!! Not even so much for being able to insure your belongings Buy it because it provides you LIABILITY COVERAGE! Heck, pay a few bucks more and buy $500,000 or even $1 million of liability on your renters policy. Renters policies are dirt cheap (typically a few hundred bucks a year). Liability provides payment up to the policy limit if someone other than a resident of the premises is injured and you're found to be legally liable. If you're sued for that reason? Your insurance company provides legal counsel, not you. Also, most policies provide for liability coverage if you inadvertently injure someone when you're away from your apartment (and not in a car). It's a smart move to buy this coverage.

SORRY FOR THE DUPLICATE POST!!!!

[Quick]

I have State Farm. I go on a golf trip once a year and always worry about my clubs making it. My agent suggested Article Insurance (I think that's what it's called). Doesn't really have anything to do with travel. If the stuff gets damaged, stolen or lost. Costs about $30 a year for my golf gear. Replacement value. Check on that.

[FreyGrimrod]

Renters insurance $175.00 ****ed into the wind.... Peace of mind when I go to sleep Priceless.

[Hawkeye5]

Actually 'renters insurance' is a homeowners policy with the structure coverage eliminated and the important addition of 'Fire Legal Liability'. That is the only difference. In fact renter's policy forms are numbered HO 4, while owner's are numbered HO 2 or 3 for the more common Insurance Services Office coverages.
For those of you that live in apartments and don't have renter's insurance, read your lease. You are responsible for fire damage.
Collections of all types are insured on inland marine stand-alone policies or as part of an inland marine schedule endorsed onto the homeowner or renter's policy.

[ChrisL]

Actually 'renters insurance' is a homeowners policy with the structure coverage eliminated and the important addition of 'Fire Legal Liability'. That is the only difference. In fact renter's policy forms are numbered HO 4, while owner's are numbered HO 2 or 3 for the more common Insurance Services Office coverages.
For those of you that live in apartments and don't have renter's insurance, read your lease. You are responsible for fire damage.
Collections of all types are insured on inland marine stand-alone policies or as part of an inland marine schedule endorsed onto the homeowner or renter's policy.

Good points, John.

Chris L