Recently, a Labubu figurine — part of the designer toy trend — sold for $10,585. For most people, this might seem like an anomaly. But in the world of collectibles, rare items like this can command significant value.
If you’re the buyer (or a collector of similar high-value items), there’s one important insurance tip you should know: contact your insurance agent as soon as possible.
That’s because if you’re relying on a standard homeowners insurance policy to cover that purchase, you may be underinsured by several thousand dollars.
What Your Homeowners Policy Likely Covers
Most homeowners insurance policies (such as HO-3 forms) include personal property coverage for your belongings—furniture, electronics, clothing, and yes, collections. However, many policyholders are unaware that certain categories of personal property come with sub-limits—often much lower than the full coverage amount.
Collectibles are frequently subject to these limits. In many standard policies, the maximum payout for collectible items in the event of a covered loss (like theft or fire) is capped at $2,500—regardless of the actual value of the item.
Common Covered Losses—And the Gap They Expose
Standard homeowners policies typically cover losses due to:
- Theft
- Fire or smoke damage
- Vandalism
- Water damage from burst pipes
However, even when the loss is covered, the payout for high-value collectibles may be restricted by the policy’s internal limits. That’s where many collectors are caught off guard.
How to Properly Insure High-Value Collectibles
To make sure your valuable items are fully protected, consider the following steps:
1. Schedule Items on Your Policy
You can add a scheduled personal property endorsement (also known as a personal articles floater) to your homeowners policy. This allows you to:
- Insure the item for its appraised or agreed value
- Avoid the standard personal property sub-limits
- Gain broader protection against additional risks such as accidental breakage or mysterious disappearance
2. Provide Proof of Value
Insurers typically require documentation to support the insured value. This can include:
- A purchase receipt
- A professional appraisal
- Documentation of recent market sales—such as screenshots from eBay showing sold listings
Many insurance carriers will accept recent online sale data as evidence of current market value, especially for collectible items with an active resale market.
3. Consult with Your Insurance Agent
Because coverage options and policy language vary by insurer, it’s important to speak directly with your agent. They can help you determine whether your current policy provides adequate protection and assist you in scheduling your items appropriately.
Why It Matters
Consider this example: A toy worth over $10,000 is stolen during a move. You file a claim under your homeowners policy, only to find that the collectibles limit is $2,500. Without a scheduled endorsement, you’re left with a $7,500 gap in coverage.
This kind of oversight is common—but easily preventable with the right advice and documentation.
Protecting What Matters
At VanScoter Insurance Agency, we help clients throughout Greece, NY and the greater Rochester area identify and address coverage gaps in their homeowners policies—especially when it comes to valuable personal property like collectibles, jewelry, and fine art.
Whether you’re an experienced collector or recently purchased your first high-value item, we can help you understand your options and ensure you’re properly protected.
