Insurance for collectibles

I use American Collectors' Insurance and self-appraised for my collection, and I include an endorsement called "Collector's Choice" for transport, use at the club and damage during 3rd party repair...

Although my collection is newer than 2000.  I hope this helps.

Thanks!

- Mario

If you own your own home and have homeowner's insurance, you may be able to add a separate Rider to your policy, such as with jewelry. Contact your agent or the company directly.

@Secarider posted:

Does anyone know of an insurance company, that will insure their train collection ?  And how would you go about getting them appraised.

I agree with Richie, start with your agent as your items may be covered as contents of your home.  Ask about a Personal Article Floater(PAF).  John

Insurance is available (at a cost, of course) via TCA and NMRA.  It may or may not be less expensive than what you can get with a rider on your homeowners insurance.

Your homeowners policy's contents coverage will offer some protection, but it's rarely adequate for a train collection.  Whatever you get, be sure you get it in writing, and don't just rely on the agent's word. 

There have been other threads on here regarding this subject.  However, one thing I've never seen is a report from someone who has actually made a claim.  Unfortunately, that's when you really find out how good your coverage is.

I'm using American Collectors currently for my 1969 Corvair. Found them great folks to deal with, knowledgeable and willing to spend the time to talk with you.

I have USAA for my home owner's insurance.  They sent me to American Collectors Insurance when I asked them to add coverage for my train collection.

I once had a collectible insurance company policy on my trains.  A new owner took over and the premium doubled.  I checked with my homeowners policy and the representative told me that as long as I had a record of the items, they were covered under my homeowners insurance.

@Mallard4468 posted:

There have been other threads on here regarding this subject.  However, one thing I've never seen is a report from someone who has actually made a claim.  Unfortunately, that's when you really find out how good your coverage is.

A few years ago we had a kitchen sink drain back up and water was on the kitchen floor. The floor slopes to the center of our home and the train layout is located so that an area about 4 x 6 got water dumped on it.  An MTH Northern, Sinclair gas station and a couple of cars got the shower.  I called USAA.  I said I could sell the items, report that amount and compare it to what I paid for the item.  Not replacement cost, not current value, not less depreciation- original price.  When   I listed the items in the For Sale forum I described what happened.  All items sold very quickly and USAA sent me a check for the difference between the total sale price and what I paid for the items when I purchased them new.  The Northern had to be at least twenty years old and the gas station probably fifteen years old.  Items were not on the PAF, just as contents on the homeowner's policy.   John

@Mallard4468 posted:

Your homeowners policy's contents coverage will offer some protection, but it's rarely adequate for a train collection.

There is no special limit on toys on a homeowners policy, so I'm good.

@rattler21 posted:

I called USAA.  I said I could sell the items, report that amount and compare it to what I paid for the item.  Not replacement cost, not current vallue, not less depreciation- original price.

Basically, they made you whole and got you to sell the salvage for them.  Brilliant on their part.

Amica (my rental insurance company) recommended "Collectibles Insurance Services". They specialize in insuring collections. I am paying $305 for $45,000 in coverage. Website: www.CollectINsure.com

Thank you guys for your input.

@ADCX Rob posted:

There is no special limit on toys on a homeowners policy, so I'm good.

Doubtful.  Generally speaking, model trains, especially items that are not currently produced, are not considered toys by the insurance company.  Suggest that you read your policy carefully (and ask the company for an interpretation of your position) to avoid disappointment in the case of a loss.

(At one time, I worked as a property and casualty underwriter, so I'm not just pulling this out of a dark place.)

Doubtful.  Generally speaking, model trains, especially items that are not currently produced, are not considered toys by the insurance company.

So, we will need a tipping point specified & defined, then, when does a toy become not a toy but something else, like a collectible?  Pretty sure anything I have now can be replaced with a current or recent production item.

@ADCX Rob posted:

So, we will need a tipping point specified & defined, then, when does a toy become not a toy but something else, like a collectible?  Pretty sure anything I have now can be replaced with a current or recent production item.

It all depends on the specific items, the nature of the loss, the wording in a particular company's policy, and how their claims department interprets it - there's no definitive answer for everyone - that's why I have repeatedly (in this thread and others) suggested checking with your insurer and getting it in writing.  Some companies consider collectible trains to be "fine art".  To your example, if you would be satisfied with a mint Postwar F3 being replaced with current production (or perhaps a Menards F3), then you're probably right about your coverage.

It's also important to remember that the contents limit is generally half of the value of the structure.  Many train folks have tens of thousands of dollars worth of stuff - in the event of a total loss, this can quickly eat into money that is needed to replace clothing, furniture, electronics, appliances, etc.

Your house, your trains, your money - it's up to you regarding how much risk you're willing to absorb and the amount of time, effort, and money you're willing to invest in fighting an adverse decision.

A detailed list, (of all model train related items), is important.  Purchase price, and date.   The average adjuster would have limited knowledge of (model trains).  That would apply to a lot of our possession.  Actual, or full replacement value ????  A yearly review, of the insurance products, you have purchased over time, is a good idea.  You might find that (insurance) products you purchased, years ago, don't apply, today's world.

@Richie C. posted:

If you own your own home and have homeowner's insurance, you may be able to add a separate Rider to your policy, such as with jewelry. Contact your agent or the company directly.

This is what I do. Databasing your collection is invaluable for  having insurance.
Alan

Through many years of dealing with insurance companies I have concluded that they are organized crime in three piece suits.
Alan

I thought of another guideline which may be helpful in deciding whether or not one needs additional coverage.

If determining an item's replacement cost involves checking sold results on ebay, auction results, train meet prices, or use of a price guide, then it probably falls under the fine arts limit, which is usually relatively small.  If the value can be determined by looking at a manufacturer's current catalog, then there's a good chance that it falls under the contents coverage (up to the policy limits, of course).  IANAL and YMMV!

It's also important to remember that what is right for one person may or may not be appropriate for others.

Due to increasing property losses in recent years, insurers have been adding more and more restrictions on what they cover.  You'll get new pages every year which list updates to the limitations and exclusions - READ THEM!  (Hint:  These changes are rarely in your favor.)

I just signed on with Collectibles Insurance Services. Very professional service rep. I have some coverage on home owners but not enough in case of a major loss.
They will accept photos/video and a detailed list. Time to get my inventory list up to date. 👍🏻

@N&W 1218 posted:

I just signed on with Collectibles Insurance Services. Very professional service rep. I have some coverage on home owners but not enough in case of a major loss.
They will accept photos/video and a detailed list. Time to get my inventory list up to date. 👍🏻

How much is the premium per $100 (or $1000) of coverage?

I carry the TCA sponsored insurance.  Quite a number of years ago now I had contractors working on the house.  One of their employees helped himself to several thousand dollars worth of trains.  Most were recovered by the police but a number were never found. 

I keep a database of all of my trains with approximate current values.  I filed a claim with the insurance company, they cross checked my stated values with the TCA, and they sent me a check very quickly.

The TCA coverage comes in two forms, declared individual items for those who don't change their collections often and blanket coverage.  I had the blanket coverage.  I carry about $80,000 worth of blanket coverage which costs about $500 per year.  I very much recommend the TCA sponsored insurance policy.

LionelFlyer

Years ago I had a carpentry business and had done work for two different lawyers both worked for different insurance companies. While talking to them I had asked each what they did for the insurance companies. They both said they work all day finding ways to NOT pay claims. Your best interest is not theirs. Don’t assume (***/u/me) your’e covered.
Dan

I’ve got $75,000 coverage for $504 a year. $50 deductible.

My insurance agent said I’d be covered but document, document, document !  Now I just need to add/delete from my list...tornado season is just around the corner 😳

Right, I am going to remember what I paid for everything! And I kept receipts too.