When you spend years building a beautiful coin collection it makes sense to protect it. Insuring your coin collection is a simple way to get peace of mind.
Before we begin, we are not insurance agents. We are not in the business of recommending insurance companies, domestic or international.
There are a few things you can do to make sure your collection is properly insured. These are things that most insurance companies will ask you about when you request a quote. If you do these things before contacting your agent, you can speed up the process.
Value
Have your coins re-valued. Coins typically increase in value over long periods. If you bought a coin in 2000 for $10 it may be worth $200 today. Many factors determine a coin’s value including toning (which continues after purchase), scarcity (which typically increases over time), and Silver and Gold coins are affected by the precious metals market.
Documents
Documentation will also affect the value of your collection. All coins graded by PCGS show a value on the outside of the slab holder. If you never get your coins re-valued your proof-of-value will show less than the actual value. The same is true for coins in flips with a dollar amount written on the cardboard. Documentation may also include Certificates of Authenticity, provenance documents from auction houses, and mint-issued paperwork.
Appearance
Re-photograph your coins, or have them photographed or videoed for your insurance agent. Photographs are evidence as to the size and condition of your collection, but only once your collection is verified by the agent. Photos are helpful because not every coin comes with documentation. Both Charles and I have coins in our collections that we pulled from circulation as young collectors. Some of his mint state buffalo nickels and some of my mint state steel pennies lack documentation, but photos show their details and their value.
Storage
How you store your coins will impact your collection value. Quality displays add value. Keeping your collection in a book or a drawer does not add value. If your collection is mounted, the room(s) in which you display your collection will also affect the overall insurable value. For example, hermetically sealed displays have more value than traditional mounting. Also, light and climate-controlled rooms offer more protection than an open shelf near a window. Conversely, storing your collection in a safety deposit box lends a great deal of security, possibly reducing your insurance costs without changing the collection’s value. Convey the details of your coin storage to your insurance agent.
Collection, or Collections?
Some insurance companies limit the overall payout should you suffer a loss. In that case, it benefits the serious collector to divide the collection into a series of collections and insure each one. Some insurance agencies limit their coin collection payouts to 200 USD in which case you may ask for gap coverage options or ask your agent to recommend a different agency.
In Sum
Protecting your collection lends peace of mind when it comes to owning such an investment. Recently, we discussed the time it takes for these investments to produce returns with one of our customers. Investing in precious metals, bullion, and coins is a safe method for the long-term investor to build wealth. Protect your collection, then put up your feet and watch the value grow!
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