Insuring Your Collection

The following information is provided to educate and inform. eBay is not liable or responsible for any type of damage or loss caused, or alleged to be caused, directly or indirectly, by the information below.

The idea that something might happen to your collection is not a thought that anyone likes to entertain. Whether you collect only Bean Bag toys, or if collect several different types of plush collectibles, these collections can be worth a huge sum of money. For example, the royal blue "Peanut the Elephant" is a rare Ty Beanie Baby that originally sold for $4.99 retail. This retired Beanie recently sold for over $5,000! The very rare Woolie Gold Teddy Bear, an Attic Collectible that retailed for about the same amount, is valued in current price guides at over $1,000!

Of course, not all collectors own these very rare Beanies, but many do have large collections. Often, collectors are amazed when they find out what their collections are worth.

The first step to getting your collection insured is to determine the current secondary market value of the entire collection. Each item must be recorded, and the total monetary value is the value you need to provide to your insurance agent. If the unthinkable should occur and you need to file a claim, it is very important to have an inventory with current secondary market values assigned to each item. The secondary market value is important because if you need to replace your collection, that is the price you will need to pay.

The easiest way to keep an accurate accounting of your collection is to put together a spreadsheet that includes detailed information. It is important to know what you have, the condition of the items and how many you have. List each item in alphabetical order by name. Include on the spreadsheet, the style number, any variations (for example, if you have the Maple with Pride tush tag), date retired (if it is retired), and the current secondary market value. List each item even if it is not retired. This will make it easier to update as the value changes. If your Beanie is mint or if there is a flaw, that should be noted because these are important factors that determine the secondary market value. When you have this critical task completed, you will have an approximate estimate of the value of your entire collection.

It is also a good idea to photograph your collection in case you ever need to file a claim or want to sell the collection. Keep copies of any secondary market guides that you use to determine the value of your collection.

The next step is to contact your insurance agent. Usually, the agent who handles your homeowner’s insurance is the best source. Let your agent know how much your collection is worth (based on your figures), and provide a detailed explanation of your insurance needs. Show your agent photos of your collection and copies of secondary market value prices. Discuss "what ifs" and deductibles. Get more than one estimate, and "shop around" for competitive prices.

Another thing to keep in mind is that it is important to understand exactly what the procedure is for filing a claim.

Often, a rider (an addition to a document) can be attached to a current homeowner’s policy. If you choose that method, be sure to have the agent go over the policy with you so you are clear on what is covered and what is not. You do not want any surprises later.

You should check the secondary market prices from time to time and update your spreadsheet if the prices make significant increases. A collectible that is worth $10 today could suddenly shoot up in value overnight, and you need to make note of those kinds of changes.

If you are a dealer and travel from show to show with inventory in your car, it is very important to check your car owner’s insurance and find out about theft liability. There have been horror stories of dealers’ vehicles that were broken into, and the vehicles and entire inventory stolen. In these cases, the inventory was NOT covered since this is considered a business and not a personal property theft. These are the topics you need to clarify with your agent. Policies can vary greatly. Find out if you need to increase your business insurance policy or if you do not currently have private business insurance, find out about getting a policy in place.

Use good common sense. Most homeowners have their personal and family heirlooms such as jewelry, silver, coins and other valuables insured, but they don’t think to get their very valuable, and in some cases, irreplaceable Beanie collections insured. Getting an insurance policy in place now could save you a lot of grief down the road.

The preceding material was written by Myrtle Cecil. These are the opinions of the author, not the opinions of eBay, and therefore eBay does not validate the accuracy of or endorse these opinions.