Whether you’re an avid rare coin collector or a Grand Rapids coin dealer, insuring your coin collection can be one of the best ways to protect your investment and give you peace of mind. With an annual cost that is often around 1% of the value of your collection, it may be worth considering for any collector. For professional collectors and dealers, the cost is even a deductible expense.
Many beginning collectors assume that their homeowner’s or renter’s insurance policy covers their rare coin collection. It’s true that some homeowners’ policies will cover small coin theft, but many policies have exclusion clauses. Read your insurance policy carefully to find out what it does and doesn’t cover.
If you find that your coin collection is not covered sufficiently, where can you find insurance? You can start by asking your homeowner’s or renter’s insurance representative whether you can get a policy amendment. You can also purchase a separate specialized coin insurance policy. One of the biggest insurers of rare coins that you can check with is Hugh Wood, Inc. If you’re an ANA member, you can look for other insurers through the ANA, sometimes with discounted rates for members.
When you do look into insurance for your coins, the insurer will probably ask a number of questions that will affect your coverage and rates, including:
- Exactly what is being insured? Insurers differ in the amount of information they require. Some require an appraisal of the collection, but others are satisfied with your own assessment of the value of your rare coins, and (separately) any bullion coins. Remember to modify your coverage as needed when you buy and sell rare coins.
- In what circumstances would you like the coins to be insured? In your home, to and from shows, in transit to brokers?
- Where are your coins stored? Your rates will vary quite a bit depending on whether you store them exclusively in a safe deposit box or in a shoebox under the bed.
- If you store your coins in a safe at home, what is the UL rating of your safe?
Be sure to read your policy and ask as many questions as you need to be comfortable with the policy, including:
- Restrictions: Most policies have a number of restrictions and exceptions, such as coins left in unattended vehicles.
- Coverage: What portion of the coin collection would be covered in the event of loss? Some policies (particularly homeowners’ policies) only provided partial coverage. Some cover replacement value, but with fungible commodities like coins, “replacement” cost can be difficult to establish. If your policy covers replacement cost of your coins, be sure to take high resolution photos of your coins, like example with this post.
- Events: What threats are covered? The events should include fire, theft, flood, and any other conditions you believe could be a risk for your collection.
Once you decide on an insurance broker, insurance can usually be obtained quickly and at a reasonable cost, giving you increased peace of mind. If you do need an appraisal by a Grand Rapids coin dealer to obtain coverage, contact Mullen Coins.