Insuring your hobby and investments

[Dutch]

I've been reading lately about brothers investing quite a bit in cellaring tobacco. Next thought was what might be the total investment between my pipes and tobacco, should my apartment go up in flames.

I have a renters insurance policy that covers up to $5000 loss, but I'm checking in to getting more coverage.

Any thoughts or advice would be greatly appreciated whether you are new to the hobby, or are an old fart. :study:

 

[Doc Manhattan]

Via some friends who have an apartment that's been robbed: Inventory with hard copy photos. You want the photo evidence for unusual claims, and if you get burgled/burnt, you're likely going to lose the camera/computer where digital photos were stored.

 

[Bub]

You can always store digital photos on-line, but you have to remember the password.

 

[atwageman]

I update and store photos of my stash in many places other than home.

 

[Tim_Haggerty]

Get more coverage. Renter's insurance is really inexpensive.

 

[riff raff]

I've been thinking about that as well. I'm going to update and check my policy as well. I have just under $2k invested in pipes, which isn't a ton, but replacement value would be considerably higher should something unfortunate happen. I have pix and a spreadsheet on my pipes, but need to store that on a CD in our safe deposit box, a good reminder for me to do this. (other household items secured in that method)

 

[esoxhunter]

I just checked into this last week. I am insured by Farmers, and was told that they would not insure my collection on a valued-basis in a separate rider (like they do for jewelry and other more conventional items). The advantages of having a rider, among other things, are that there is no deductible if you have a loss and, as I understand it, the adjustment process is easier.

However, my agent checked with the company, and they told him that my collection is fully covered on a replacement cost basis up to my homeowners policy's "personal property" limit of coverage (which is much higher than my collection is worth). He asked me to send him a list with each of the pipes and their replacement cost value, which I did. He didn't need actual photos.

The downside here is that coverage is subject to the personal property deductible. But because a theft or fire loss would likley involve other personal property other than the pipes, it would at least be spread over more than the value of the pipe collection.

 

[atwageman]

Me and the wife recently moved into a apartment, so we could use our free time for traveling and such instead of dealing with the responsibilities of a house. Needless to say I went from a homeowners policy to a renters policy. I've got $30,000 worth of coverage for about $100 a year.

The policy is replacement cost......in other words if a pipe is worth $100 today and a neighbor decides to torch the place a few years down the road and it will cost $300 to replace the pipe.....then the policy pays $300. Me and the wife had to provide a laundry list with pics of the pipes, jewelry, guns, etc. to the insurance company. Then our agent who we have been dealing with for years had to make a visit to our apartment to verify the info we provided.........to satisfy people a few pay grades above him.

My policy covers fire, flood, theft, and so on, and as of two weeks ago....acts of terrorism.

 

[esoxhunter]

I bet your agent just wanted to take a day trip to see your collection!

Apologies for the misleading syntax in my comment about "replacement cost." Indeed, "replacement cost" means exactly that: the value of the pipes at the time of loss, not at the time they were initially purchased or insured. I just neglected to think about the potential for appreciation--somehow, the things I buy tend to DEpreciate!! :evil:

I do know that "replacement cost" adjustments can get a bit tricky when dealing with antiques, such as vintage pipes, which are no longer available new on the retail market. And this is especially true when dealing with a niche area (collectible pipes) which don't have a huge market to establish valuation. This is why my agent had to call his underwriters to be sure that the pipes would be covered in the first place. Different states apply different legal principles to define what "replacement cost" actually is, which is why I sent my agent a list of what I believe the current values to be.

 

[atwageman]

Yeah when he was there he took some pics himself. Before I signed the policy, I let my lawyer look at it. Told my agent, I trusted him, it's the bean counter underwriters 5 states away I don't trust.

 

[Silence2477]

I would talk to your insurance agent and maybe another insurance agent if you aren't satisfied with the first one. $5000 is much to low. If you think about it, that probably won't cover the cost of new clothing for one person at todays rates, let alone furniture, tv, and applicances. I think I was insured for somewhere between 30-50K for renters insurance when I had my apartment, and it was pretty cheap.

 

[somedumbjerk]

i have a ton of renters insurance. i at one point had about $25k in bicycles/parts parked at my house. not to mention car parts, tools, clothes, electronics, furniture, and now pipes. just look at your closet and think about it as if you are shopping new. if your apartment went down, you'd have the clothes on your back and that's it. up the insurance. my insurance is like $125 a year. it also just covered my car getting broken into and my GPS, sunglasses and an ipod getting stolen. it's worth it, to me.

 

[Northern Neil]

Now what an interesting idea. I have insurance for my house and car, no question. But I always assumed it would just cover my music gear and other electronic items. Never though about my pipes, and the even more expensive tobacco (stupid taxes). I may have to look into this and make sure my collection and cellar are included in my coveracge.