When the Unthinkable Happens, Are You Covered?

Book collections grow over time. They may become quite valuable as a collection without us consciously realizing it. Too many book collectors make the mistake of not planning for a catastrophic loss of their collection. They may assume that everything is covered under their homeowner’s or rental insurance. But the more valuable your collection is, the more you need to pay special attention to your insurance coverage. The least you will need is a collectables rider to your current policy. But there are definite advantages to having a separate policy just for your book collection. Choosing correctly now could make a huge difference if the unthinkable ever happens.

Everyone who maintains homeowner’s or renter’s insurance assumes that the contents of their residence are insured, including any books they’ve collected. While this may be true, your books may not be covered as well as you want them to be. For example, if you don’t have replacement coverage, your insurance may only reimburse you for the face value of the book. If it happened to cost $2 when first printed back in 1943, that’s what your insurance will pay you regardless of how much it would cost to replace it. Replacement coverage (available as an upgrade on most policies) seems to be the answer, but you might be surprised how much debate about values can be stirred up in the course of a settlement.

For small to moderate collections, your best answer might be a collectables rider on your current insurance. Riders are additions to your current policy that specifically address certain items or types of items. But again, your insurance company may not be familiar with the current book market. In addition, this type of rider may require very detailed lists and appraisals of your collection.

For moderate to large collections, you should look for separate collectables insurance. This will be a completely separate policy, probably written by a specialized company other than your normal insurance provider. When insurance companies specialize in this type of service, they tend to understand book collections better. With greater experience behind them, they are usually able to settle claims much more quickly than your regular insurance company. The good news is most of these specialty carriers are more laid back about inventories and appraisals.

Don’t roll the dice on your book collection. By definition, you can never predict the unexpected. If you truly value your collection, you should make sure it’s well-insured.