Do you guys have insurance for your collection?

[AYKBOBCAT]

This question has been in my mind for very long time...

I have quite a few cars and trucks now. Most of them are packed in boxes at my parent's place in Canada. I probably have over 40-50 cars. Several AYK at various stages of restoration, a bunch of RC10 and a truck load of parts for Associated and AYK. I would nearly die if a fire would scrap it all!

So I am thinking of people that have collections of much more value than mine, like InetRc or Shodog's... There are 1000's of $$ in there...

Did you guys get this stuff evaluated and properly insured? How can one do this? and is it worth it?

[MelvinsArmy]

I don't know. I have renter's insurance that should cover some of it. When I read my policy, it looked like stuff like this was covered up to a certain amount. Probably enough to cover my collection, I have a fraction of what some of you guys have. I've been meaning to go through my place and document everything with the digi camera and store the images outside my place, just in case.

[AYKBOBCAT]

yeah but even if you have pictures.... How would a regular insurance guy know the value of a 4wd converted RC10?

[shodog]

I specifically asked my Homeowner policy writer to add extra coverage for my collection. It costs me about $28 more a year to insure my house. I keep all my receipts for my purchases and have kept all of my auction win e-mails for the last three years to prove value of my stuff.

Honestly I don’t know how insurance companies make any money but they do, in fact millions of it. Plus it’s really inequitable the way insurance companies work. My house, where the structure is worth $200K only costs about $600 a year to insure. While my 35K car that continually depreciates costs $1100 a year to insure.

[Synergy]

My house, where the structure is worth $200K only costs about $600 a year to insure. While my 35K car that continually depreciates costs $1100 a year to insure.

Your not likely to run over anyone with you house though Shodog

[Janus]

a Couple of years ago we had a break-in. Had a hard time explaning to the insurance that there was over (......) of stolen stuff just on "toy cars". Was a complete B3 and T3 with motors, chargers, batteries, tires, everything. He even went to the guy who imported AE in that time in the Netherlands. They payed almost everything (couldn't prove the condition of the tire collection (5 RC10 boxes full)), because it was part of "stuff that's in the house" insurance (not sure how it's called in English sorry). But from that point on I have to make a list each year of what I've got and the value of it. Easy enough for the current stuff that I race. The vintage stuff is harder, but on the list its for the retail value it was THEN. Not quite the same value it has now, but it was hard enough to convince them 15 year or more old stuff still had value.

[AYKBOBCAT]

there must be someone in the RC community (maybe at TamiyaClub?) that works in insurances and also understand us...

[InetRC]

Though I was Vice President of E-Business for a large insurance carrier at one time, I did get to know the business by getting certification in general insurance so I can help explain some of this...

First off, Shodog, the insurance premium is based on risk of loss. Automobile insurance could be more expensive depending on demographics, car etc.. because you risk damaging property or injuring someone every time you take the car out. You can further see the breakdown in this by looking at your policy and checking out how much you pay for comprehensive coverage and medical liability. Comprehensive is cheap compared to the medical.

As far as homeowners policies go, many people insure themselves for value and contents. Typically a house is insured for the value of reconstruction. No sense in insuring for full value, including land. The land isn't going anywhere if your house burns down.

You can add layers of insurance for just about anything. My recommendation for collectors is that you talk with your insurance agent who can guide you better since different insurance carriers have different limits on what can be insured. You can always add additional layers of insurance for your collectibles (documenting everything like Jim does is highly recommended). Read your current policies too as there are LIMITS placed on contents which vary greatly (for example, you may be covered for $10k in content but the policy may max out jewelry at $1k).

Insurance companies make money in various methods, but primarily through investments and through 'homogenous exposure' which can be better explained as the 'law of large numbers'. Insurance carriers insure a large class of people and use the premiums to pay for losses that the small percentage of that class will claim. Good underwriting reduces the amount of risk of losses, so the amount of premiums received by the large population exceeds the amount of losses claimed. In addition, insurance companies invest the premiums paid to them. There are other methods but those are the two main ones.

Sorry this was so long - I could write a book on it if forced to! hahaha Bottom line though is read your policies (especially the endorsement section) and TALK WITH YOUR AGENT to get the most out of your coverage.

-Alex