My wife has been on me about getting my knives and some other collectibles insured. Was wondering how many others have outside insurance other than their homeowners, and what would be a good company to go with?
I looked at the insurance site listed in last months Knife World, but looking for some input from others!
Your input would be greatly appreciated!
Knife Insurance?
-
SFC ADP
- Posts: 502
- Joined: Thu Feb 02, 2006 6:20 am
- Location: Iowa City, IA
-
Paladin
- Bronze Tier
- Posts: 11681
- Joined: Sun Apr 08, 2007 12:20 am
- Location: Near Austin, Texas, between a Rock and a Weird Place
- Contact:
There are several factors that you need to consider on this question.
Do you have a standard homeowner's policy?
How much do you have at risk? Would your knives would value out @ $10,000 or would they be closer to $2500. Most HO policies cover personal collections but many states have a dollar limit on the coverage provided for collections. HO policy language varies from state to state.
Another question is business vs. personal. Most HO policies are very limited on coverage provided for business property, and some states HO policies do not cover it (business property) at all. If you have a table at a knife show with knives for sale, is that a business? It may fit the definition. In Texas where I live, the standard homeowner's B policy does not limit coverage on collections but there is a limit dollar wise on business property and as I recall, it is only covered on the home premises and then for a rather small amount.
Now, the question of covered perils comes up. For personal property (as opposed to real property) the standard HO policy covers only those perils named in the policy. The named perils are usually fire, lightning, riot, explosion, etc, including theft. There is usually a deductible applicable on an occurance basis and most companies have gone to larger deductibles that may amount to several thousand dollars. That pretty well eliminates small losses of a single or even several knives depending on the amount of value involved.
Many companies offer an endorsement that provides additional amounts of coverage on an "all risk of physical loss" basis. This eliminates the question of named perils, per above. For example, it would provide coverage for an item merely lost, when theft was not provable.
As you can see, this can be a real can of worms that has been opened. The best option is likely to have an insurance agent whom you can trust. Try to find one that is more than a salesman. Sit down with him or her and describe your circumstances. Ask what is available. Ask what the limitations on any given policy might be. The agent may well try to sell you a "floater" policy to supplement your HO coverage and in my opinion this can be the best solution. That policy will usually elimimate the question of business vs personal. Almost all of those policies provide the desirable "all risk" coverage and various deductibles are available. Keep in mind that the premium will be higher on lower deductible options.
If you have a Scagel or such that is worth thousands, you may need to schedule that item or those items for a specific amount. That will involve written appraisals and additional premium.
Finally
, keep records! Keep receipts, keep eBay documents, keep anything that will substantiate the existence of the knife and what the cost might have been. Take photos and if all this is on the computer, back it up. I have a collections program that I bought several years ago and I back it up to a thumb drive. I am not much of a computer whiz but that seems to work for me. 
Do you have a standard homeowner's policy?
How much do you have at risk? Would your knives would value out @ $10,000 or would they be closer to $2500. Most HO policies cover personal collections but many states have a dollar limit on the coverage provided for collections. HO policy language varies from state to state.
Another question is business vs. personal. Most HO policies are very limited on coverage provided for business property, and some states HO policies do not cover it (business property) at all. If you have a table at a knife show with knives for sale, is that a business? It may fit the definition. In Texas where I live, the standard homeowner's B policy does not limit coverage on collections but there is a limit dollar wise on business property and as I recall, it is only covered on the home premises and then for a rather small amount.
Now, the question of covered perils comes up. For personal property (as opposed to real property) the standard HO policy covers only those perils named in the policy. The named perils are usually fire, lightning, riot, explosion, etc, including theft. There is usually a deductible applicable on an occurance basis and most companies have gone to larger deductibles that may amount to several thousand dollars. That pretty well eliminates small losses of a single or even several knives depending on the amount of value involved.
Many companies offer an endorsement that provides additional amounts of coverage on an "all risk of physical loss" basis. This eliminates the question of named perils, per above. For example, it would provide coverage for an item merely lost, when theft was not provable.
As you can see, this can be a real can of worms that has been opened. The best option is likely to have an insurance agent whom you can trust. Try to find one that is more than a salesman. Sit down with him or her and describe your circumstances. Ask what is available. Ask what the limitations on any given policy might be. The agent may well try to sell you a "floater" policy to supplement your HO coverage and in my opinion this can be the best solution. That policy will usually elimimate the question of business vs personal. Almost all of those policies provide the desirable "all risk" coverage and various deductibles are available. Keep in mind that the premium will be higher on lower deductible options.
If you have a Scagel or such that is worth thousands, you may need to schedule that item or those items for a specific amount. That will involve written appraisals and additional premium.
Finally
, keep records! Keep receipts, keep eBay documents, keep anything that will substantiate the existence of the knife and what the cost might have been. Take photos and if all this is on the computer, back it up. I have a collections program that I bought several years ago and I back it up to a thumb drive. I am not much of a computer whiz but that seems to work for me. Paladin
God Bless the USA
Please visit my store SWEETWATER KNIVES
"Buy more ammo" - Johnnie Fain
"I'm glad I ain't scared to be lazy." Augustus McCrae
God Bless the USA
Please visit my store SWEETWATER KNIVES
"Buy more ammo" - Johnnie Fain
"I'm glad I ain't scared to be lazy." Augustus McCrae
-
El Lobo
- Gold Tier
- Posts: 3036
- Joined: Tue Dec 14, 2004 4:47 pm
- Location: Arizona, right here in the U.S. of A.
Good info, and a well written, thought provoking post!! Thanks. 
Bill
Bill
Please visit the Member Stores here at AAPK, including my store.....GET AN EDGE!
http://www.allaboutpocketknives.com/getanedge
http://www.allaboutpocketknives.com/getanedge
-
justold52
- Posts: 4459
- Joined: Tue Aug 01, 2006 2:47 am
- Location: Bloomington, ILL the sick state
YES you need to go by the STATE you live in first.
Then some good things to ask is if you have some in your car in another STATE and the knives get ripped off or damaged in an accident will they pay and how much. Then what happens to the damaged knives ?
Do they now belong to the ins co. or can you repair them and get paid for repairing them ?
Just to add to the can of worms...
Then some good things to ask is if you have some in your car in another STATE and the knives get ripped off or damaged in an accident will they pay and how much. Then what happens to the damaged knives ?
Do they now belong to the ins co. or can you repair them and get paid for repairing them ?
Just to add to the can of worms...
A sign In a Chinese Pet Store: 'Buy one dog, get one flea.'
-
SFC ADP
- Posts: 502
- Joined: Thu Feb 02, 2006 6:20 am
- Location: Iowa City, IA
I will have to talk to my Home Owners insurance agent and see what they can do.
I was also reading up on this site: http://www.collectinsure.com/acrobat.htm
But some things I don't understand, like the 1% monthy increase, which is not compounded?
This is the site that I saw in Knife world, and decided to check them out. Appreciate all the info though, and if anyone else has more to add, I could use the education!
I was also reading up on this site: http://www.collectinsure.com/acrobat.htm
But some things I don't understand, like the 1% monthy increase, which is not compounded?
This is the site that I saw in Knife world, and decided to check them out. Appreciate all the info though, and if anyone else has more to add, I could use the education!