Homeowner's insurance and comics

[fantastic_four]

Does anyone trust their homeowner's insurance policy to cover their comics in case of fire/theft? Mine is through NationWide, and they have consistently told me that personal possessions such as comics and other collectibles are covered up to full amounts listed for inside-the-house items, without any special upper limits as has been common on policies for items like cash, jewlery, or furs. I call them about this around once a year, just to see if they change their answer, but so far my agent has answered consistently. He says that they're covered if:

• you're not selling them, which makes you a business (I'm pretty sure this was Matt Stanley/notch_top's downfall on his insurance claim)
• you keep an inventory
• you keep documentation to prove ownership

When I ask my agent what type of documentation I should keep to prove ownership, he has suggested a videotape and a list of contacts who some of the more expensive comics were bought from. I think that with any type of policy--business or personal/homeowner's--you need to keep an inventory, but what do you guys do for documentation on proof of ownership?

 

I especially bring this up here because I know that most people here sell comics. I have still never sold one myself, but be warned--if you're relying on your homeowner's policy to cover your comics and they find out you've been selling comics, they could very likely deny any sort of a claim. Ask Matt Stanley, who I think tried to make a claim of over $150,000.

[AlexH]

Hmm, I have contents insurance, but I'm not sure it my books would be covered. I guess that is something I should look into.

 

Thanks for bringing this up FF

[scottish]

I'm curious as to the break off point when one is considered a 'business?' How many comics to you need to sell, per month, year? in order to be classified as such?

 

My insurance is with NationWide as well...I need to get off my but and inventory the rest of my collection.

 

I'm in a pickle as to ownership documentation...should I print out eBay auction pages? My largest value being my X-Men run was purchased 13 years ago from 1,000,000 comics...are they still in business? If not, what then?

 

James, you've given me a headache! Seriously, thanks for bringing it to attention.

[WernerVonDoom]

You should read your policy carefully. Most policies have a limit on collectibles similar to firearms/jewelry.

 

And don't believe a word your agent says.

 

Years back, I went to an State Farm agent for renter's insurance and asked specifically if the policy covered comics. They said the policy would give me $75,000 coverage for my comic collection. When I got home and read the fine print, the policy limited payment on comics to $3,000. I ended up getting my money back - but I learned a valuable lesson....always read the fine print!!!!!!!

[fantastic_four]

What was the category on your policy that comics fell under? "Unclassified personal possessions," or some other general category; do you remember?

[WernerVonDoom]

That policy actually listed the collectibles that were limited. Comics/Baseball Cards/etc.

[MonumentalCo]

I recently saw a company advertising in CBG that handles insurance for collectibles only. They are called Collectibles Insurance Agency . I do not personally know much about them other then I have seen their ads and seen them at a few shows.

 

Tom

[maven_johnson-migration]

Unless they are specifically excluded or restricted in coverage amount (highly unlikely), you can claim amounts of comics up to the amount of your coverage for contents. Usually jewelry, furs, and computers are restricted in dollar value of what can be claimed, and thus require riders covering any excess amounts. I don't know about any requirements regarding selling comics, but I am not in the insurance business. I do carry coverage from Collectibles Insurance Agency for the comics I do sell (and keep in storage) - $50,000 in coverage costs about $300 semi-annually. A great benefit is that this policy covers mail damage/loss up to $200 per incident, so you can pocket the extra couple of bucks on ebay auctions if someone wants insurance, '

 

Steve

[Mister_Comics]

Your homeowner insurance only covers up to a certain amount on personal property. Unless your paying more, its most likely your books are not covered.

 

Here's another kind of insurance...

Use the Discover Card when buying comics or sending because Discover insures anything no matter what it is, when the card is used.

[fantastic_four]

Nationwide homeowner's policies insure interior contents of a house no less than 75% of the value of the house/property itself, according to my insurance agent. So if your house is worth $100,000, there is another $75,000 of coverage for stuff inside the house.

 

I've been trying to figure out whether I needed that insurance from that "Collectibles Insurance" company Monumental mentioned above for over a year. My current thinking is that I won't need it until I start selling. I asked my agent if I could get a cheaper rate on my homeowner's by having them insure less than 75% of the home value for my personal posessions, and he said their company doesn't offer any less than 75%.

[murph0]

Mine are fully covered under an Iowa insurance company. I've asked multiple times and they've guaranteed full coverage.. all I had to do was take pics of the books.

 

Brian

[underthebigw]

Don't believe a word you are told by someone who has sold you a homeowner's policy. Make sure the collection is specifically listed and covered in writing. And the warning about selling can be very applicable. If the insurer argues you're a dealer, you'd be lucky to get 50% of the value.

 

I've been using Collectible Insurance Agency (think that's the name) and they seem very good. I've never had to make a claim, though. Anyone else?

[Mister_Comics]

There is also matters of what type of damage. If your in a flood pron area and your books get wiped out from a flood; heaven forbid, unless you have some additional flood insurace, will your comics be covered.

 

There are so many ways for insurance companies to get out of paying or paying the minimal. Believe me they rather not pay anything. My sister-in-law is a insurance agent and some of the stuff she tells me about insurance companies just scares me. It's a gamble. Sometimes it works out for ya sometimes it don't

[Guest]

Being in the field of law, I have only one statement to make here...

 

Insurance companies do not exist to insure you in case of loss, they exist soley for the purpose of making money for themselves and their shareholders if publicly traded. And they do that very well. They are an intensely profit motivated business. They will say anything to sell you the insurance they can convince you that you need and do anything to either disclaim or mitigate damages when you do make a claim. They will raise premiums at the rise of a trend-graph or the news of a calamitous event (can you say "terror attack") but when was the last time you heard of them lowering a rate because of a cessation of claims? The words in the insurance contract are BINDING. Read the entire document and understand it because an agent's verbal representations amount to squat in a court of law without written documentation. Most people will pay far more in premiums in their lifetime than they will ever collect. That is a mathematical calculation that they have down to science (call it calculated risk) and it is why most of them make money hand over fist.

 

'nuff said

[Guest]

Hello

I am not sure if things are different because I am in Canada. But I just recently invested in some insurance for my comics through State Famr. Since the Home owners policy only covered a little bit I got a separate Personal Articles Policy for my Books. Basiclaly aftr some hassle I had to provide a full list of all the books I own. Plus I had to list any books valued at over $250 Canadian Separately. I also had to take pictures of my boxes, where they are stored..and a had to take a bunch of lids off just so they could see they where full. All in all it is well worth it..I now have the $30,000 coverage I need..and it only costs me like $10 a month.

[Darthdiesel]

Based on theMan's assessment, best way to make out is insure your comics and have a nice "accidental" comic bonfire and then arrive just in time to stop the fire from spreading beyond the comic storage area...

[Bronty]

Hi,

 

I'm especially interested in this being in Canada as well and $10 a month sounds exceptionally reasonable. Do you have a phone # or a link or something?

 

 

[Guest]

I'm not a "modern" dude ... but you make'um some funny posts... keep up good "stabs"

[comicwiz]

Hey FF

 

Great thread! It is with both experience and a skeptical disposition that informs my current opinion towards any insurance company giving "replacement" coverage for comics within a typical homeowners policy. I would also have to extend this skepticism towards any Personal Articles Policy (as Logan69 mentioned), specifically with receiving monetary compensation to "replace" the comics in your collection. This becomes especially complex with the nature of high-grades selling multiples of guide. I'm in favour of ANY insurance agency that understands the collectible market and is willing to assume risk in protecting collectors investments. I encourage anyone who has had experience with Collectibles Insurance Agency (CIA) for a regular collector coverage.

 

I have seen instances whereby collectors, due to loss through fire, theft, or damage, where given a small fraction of their "actual" value, nevermind the "replacement" costs for books that irrefutably would be impossible to replace (comics like a Marvel 1 pay copy).

 

Another thing I would like to add to this discussion; I believe CGC may be capable of offering a tremendous service to comic collectors by encouraging its customers to keep their bar codes on their insurance schedules. In the event of a loss, if video/photo capture could not conclusively bridge the connection between value and ownership for an insurance agency (ie. did you just pull an image from an ebay auction, or was this a book you actually owned), then supplying your insurance agency with a schedule that includes bar code for books that are being claimed for loss could make the case for slabbing even stronger.

 

Again, if anyone has any comments or feedback regarding CIA, it would be greatly appreciated. Ever since putting in a recent claim for replacing our front steps, I have been extremely skeptical of trusting my current homeowners policy, as well as my person article policy for my comic collection.

[fantastic_four]

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