1. Limit personal property coverage to a percentage of the residence value (50-70%);
2. Limit the amount payable for theft of valuable items like silver, crystal, guns, stamps, paper documents and other collectibles; and
3. Not cover losses due to flood, hurricane and earthquake.

Even if your collection is covered, you may not be able to make a claim unless you have your collection listed on a schedule. Finally, claims settlement may be based on actual cash value rather than the replacement value of the collectible.

If you are utilizing your homeowner’s policy to cover your collectibles, be sure to call your agent or insurance representative to discuss the coverage available under your policy. Put your understanding of the coverage in writing and request a written acknowledgement and comments. The best way to protect yourself is with a separate policy specifically designed to insure collectibles.