Created by potrace 1.14, written by Peter Selinger 2001-2017

How to Have Proper Insurance Coverage for a Coin Collection

  • Not a few have become interested in coin collecting as a hobby, especially if in being a numismatist, they manage to find a coin that’s worth a million dollars. However, when it comes to obtaining insurance for a coin collection, the matter requires extensive discussions.

    Why Old Coins are Valuable?

    Actually, numismatics refers not only to the practice of collecting old or unique coins, like the commemorative money or coins of which only a few were minted and released for circulation. Numismatics in a broader sense is about the study of money and their occurrence in older societies as medium of payment, to either purchase a piece of good or chattel, or to settle a debt. Often called “Odd and Curios” not all goods or objects used as the principal medium of payment in the olden days, are subjects of numismatic study.

    An example provided by one numismatics resource is that of the barter trade among Kyrgyz people, a Turkic ethnic group primarily of Kyrgyzstan. When a horse was used as primary medium in a barter exchange, but to which a change or excess value will be given to the person who paid with a horse, such change will have an equivalent value in lambskin. Numismatists engage in the study of the lambskin as a form of money and not the horse even if it’s the principal medium of a barter trade.

    Now here’s the thing, some numismatists also engage in determining the value of a coin. However, like any other commodity, the supply and demand for collectible coin items can drive the value by which a collectible coin is quoted in the market. That is why a very rare coin, if it is the only one in existence across all countries, can command as much as $1 million.

    The Matter of Getting Insurance for a Coin Collection

    Inasmuch as a rare coin forming part of a coin collection has potential of becoming very valuable, it would be wise to obtain insurance coverage for the entire lot. However, the cost of insuring a coin collection that is kept in the collector’s place of residence would be higher than it would, if the coin collection is safekept in a safety deposit box of a bank.

    Moreover, a homeowner’s insurance or a condominium unit insurance might not give the proper estimate in covering the value of the coin collection. There have been cases in which a coin collection was among the items carted away by thieves, which upon resolution of insurance claims, turned out to have been valued in the policy at only $200.

    In researching how to obtain the best insurance coverage for my own coin collection because I live in a condominium unit, I asked assistance from one of the providers of condo insurance near me. That’s where I learned that the Condominium Association policy does not cover the contents inside my unit but only the common areas shared by all condo owners of the building.

    Even more important is that I learned that in order to get the right insurance coverage for my coin collection, my condo insurance policy must include a “rider” that contains a listing of all items included in my coin collection, including their current market values. That “rider” which is also called an endorsement, will extend the coverage limit for my coin collection. Still, this is a matter that must be thoroughly discussed with your insurance provider because adding a rider to your policy, will increase the cost of your monthly insurance premium.