Collectibles Insurance

Warehousing all the non-MTG threads.

Collectibles Insurance

Postby AlexTune » Thu Jul 09, 2015 12:04 pm

MTG cards are incredibly expensive, but they can be insured.

It took me several weeks to find a policy I was comfortable with that fit my current situation. The insurance sales people have and will say whatever you want to hear, out of desire to sell you something or just plain ignorance and apathy. You are looking for something called an 'inland marine policy' it is a stupid, stupid name.

Renters/Homeowners Insurance
It is certainly possible that you have a policy that will cover your collection on top of the rest of the things in your home, but I would check the following things:
-What is the maximum dollar amount of collectibles that they will cover? Obviously, check that number against your collection.

-Many policies only cover 50-70% of your homes value. Which means if there is other damage to your home, think a fire/flood, and they are paying for any amount of damages that add up to the limit before they get to your Power 9 you wont be getting any new cards.

-Some policies do not cover collectible goods damaged by a natural disaster. Floods and Tornados are the only ones that I could see applying here in Austin, but it is good to know when you are covered.

-Many, many, many policies do not cover collectibles when they aren't inside your home, go figure? Deck or binder stolen at the GP? Tough.

-Some policies use a term "Cash Value" or "Actual Cash Value" which means the actual amount that was paid for the cards originally. If you have 1500 cards damaged in a flood that means they owe you $433 since packs have 15 cards in them and they are $4.33 a pack. It could be 1500 Farseeks or 1500 dual lands.

-Some policies use a term "Replacement Cost" This is the BIG one to look out for, make sure it is clearly defined. Look for terms that state they can replace your items with SIMILAR items. Black Lotus and a Tormod's Crypt look pretty similar to an insurance adjuster. Cards are cards, right? Not all policies with replacement costs are bad though. Read the fine print. Policies specifically designed for Collectibles may, and should, further explain how replacement is handled. Get it in writing. You want to see terms like "Fair Market Value" and want to see them expanded on in the paperwork.

-Many require a schedule with all quantities and values. This is standard you should be doing this anyways.

Collectible Insurance Companies

I went with The price was maybe $3/mo higher than the other company, but this one got me a policy from Travelers Insurance and both the owner and his son played quite a bit of Magic and they will talk to you about it... for hours. Is another company that had the type of policy that I was looking for.

Both companies cover cards in transit. Lost in the mail, stolen on the way to the GP, stolen at the GP, car exploded with collection inside.
Both companies clearly outline the terms for replacement. My homeowners insurance covered collectibles, but not nearly enough and once they passed through the front door there was no coverage.
Both companies also cover people that are considered dealers as well.


Once you have the value and list of what you want to insure. Pick how much you want your deductible to be.
The per month cost to insure is normally 5-10 basis points (.0005 and 0.0010) times the value of what you are insuring. The lower the factor the higher the deductible.

$250 deductible = 10BP (0.001)
$500 deductible= 8.75BP (0.000875)
$1000 deductible = 7.75BP (0.000775)
$2500 deductible = 6.25BP (0.000625)
$5000 deductible = 5BP (0.0005)
$10000 deductible = 3.75BP (0.000375)
If you have 30k in cards and you want a $1000 deductible
30,000 X 0.000775 = $23.25 a month.

I should not have to tell you that making false claims is a felony so don't get insurance as a scam. They will throw your ass in jail.
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