Insurance for graded collector cards – now and later
insurance graded collector cards insurance graded collector cards
Few people like to think about insurance. But protecting the value of cards could save a lot of pain – and money – if the worst happened
Insurance for long-term graded card collectors
For card collections which have grown to reasonable amounts based on either the estimated or declared value, having appropriate home and contents (household) insurance is a must.
But like all insurances, there are a few things to consider.
How does home and contents insurance cover collector graded cards?
Home and contents insurance covers for the loss to collector cards caused by defined or insured ‘events’, including things like damage (e.g. fire or weather events), theft, or vandalism. Many contents policies may not automatically cover accidental card damage; however, it can be added at an additional cost.
Understanding what is and isn’t covered is just as important as any exclusions which may apply (for example, policies may cover for storm events but not flood damage). Of course, the fewer exclusions, generally the more expensive is the policy.
Some insurers may also offer a lower cost of premiums for cards safely stored, such as in a safe, or for homes fitted with security systems or safety shutters.
When choosing insurers, it’s important to read the policy document to understand what is and isn’t covered, as well as they type of policy being offered.
Also remember, that contents insurance generally only covers cards while in a home (and not while cards are sent out for grading).
Replacement or current value of your cards?
Home and contents policy vary, but are generally classified as either current or replacement value.
Current value policies generally cover the value of cards based on estimations at the time of claim. To arrive at the current estimated value, insurers may consider things like the original card purchase price, recent valuations, or other factors like the general rate of inflation.
Replacement policies generally cover the value of cards if they were to be bought in the current marketplace. In addition to the card purchase price or any card gradings obtained, insurers may also consider reliable resources such as Beckett valuations or by searching for similar selling items in the public domain such as card pricing on eBay.
Again, card collectors should ask about any conditions and check the policy document(s) to understand what may need to be provided at time of claim.
What’s the card collection worth – and how to prove it?
Card collectors with existing home and contents cover should check with their current insurer to ask the value of existing total home contents value limits. For example, policies may cover all the items in a home up to a certain amount.
Having receipts, card valuations, photos and card catalogue lists can be important at time of claim – especially for card collectors with sizable collections.
For card collectors, having photos and details of important card characteristics (e.g. series numbers, special card types, or bespoke features like signatures) can also make a big difference in proving the uniqueness, rarity – and therefore value – of card collections.
Again, card collectors should check with the insurer and read the policy document to understand what evidence is required at claim time.
Check the excess
Like most types of insurances, the cost of cover (premiums) can be increased or decreased based on the nominated excess (the additional amount paid at claim time). Of course, the lower the excess, the more expensive is the policy and vice versa.
Insurance for professionally-graded collector cards
However, some investors who send off their cards directly to PSA may not be aware that their cards generally won’t be covered for things like postal damage or other damage incurred during the grading process.
Collectors who decide to have their cards graded through Slabd have the option to insure the value of the card when it’s sent off to PSA. Of course, this is an optional cost, however Slabd generally recommends it – especially for more valuable cards.
For collectors who choose Slabd to send of the PSA for them compared to doing-it-themselves, they’ll need to ensure they have the right postal insurance to get it to the Slabd office if they can’t deliver it in person themselves.
MoneySmart (ASIC) – Contents insurance
MoneySmart (ASIC) – Comparison websites
Insurance Council of Australia – Household insurance
Insurance Council of Australia – Contents calculator
Slabd – Card insurance
Disclosure: The information provided in this article is general in nature. Card collectors and traders should consider their own circumstances to determine if this information is appropriate for their needs.