Ask any collector: It's about more than just the car. Owning a classic is a passion project that requires regular care and attention, and it's normal for classics to come with numerous accessories and historical documents that affect its value.
In this article, we'll be describing to you how you can comprehensively insure these additional assets. We'll explain how the insurance itself works, the steps to take to secure that insurance, and any further important considerations to be aware of.
Talking categories: Fine Art versus General Contents
In short, anything that is collectable can be insured. This is best done under a quality household policy, with the items in question being insured under the category of 'Fine Art'.
Relying on insurance for your memorabilia under a general contents plan is problematic; this type of cover is limited for items that are stored in outbuildings and often has inner limits on valuables. Under a general contents plan, your insurer might also not fully understand the value of your memorabilia and miscellaneous documents, leading to potential disputes should a claim arise.
Valuating and insuring your items
The process of insuring your memorabilia, spare parts and vehicle documents doesn't have to be troublesome. Here's how we recommend approaching the task.
Take inventory: Consider the items you may need cover for and create a list. Lockton recommends considering items that have an approximate individual value in excess of £5,000.
Consider collections: It's important to be aware of the value of a collection versus the items it contains. If an item from a collection is lost, is the collection devalued? If so, cover against this specific incident may be acquired.
Itemise: Next, you can look to itemise your full collection of items on your home policy, with a total value shown for all items. For additional security, it's a sound idea to store your itemised list in the cloud or off-site, including any pictures or videos.
Hire an expert: While not mandatory, you may find peace of mind by hiring an expert to valuate your items. This can also help to avoid underinsurance under your policy.
Think security: While also optional, we encourage our clients to consider a basic security product such as a safe for the secure storage of important vehicle documents.
Insure: Insure your itemised list under the Fine Art category. As mentioned previously in this article, this category of insurance is more comprehensive and often has no applicable excess. Even better, insurers will usually offer lower rates for Fine Art cover. This is because such items are usually less attractive to thieves compared to general contents items such as laptops and other common electronics.
Spares, specialist tools and historical documents should also be considered if owned.
Spares: Valuable spare parts for your vehicle can be insured too. This can normally be done alongside your car insurance under specialist classic car cover – if you declare your spares. Some household insurers will also permit you to include motor spares under a General Contents plan if you disclose these items and allow for the total value within the cover.
Specialist tools: Your household policy should be able to accommodate any specialist tools and items you may own that relate to your vehicle. Be aware, however, of limitations to theft that may apply due to these items being located in outbuildings and the inner limits on item values in your cover.
History documents: Where history documents are concerned, we recommend you request valuation of these items when your car is being valued. You can also ask the individual valuating your car what effect there would be on your vehicle's value if these items are lost or destroyed, as this may affect your vehicle's provenance.
Still unsure on how to insure? Contact us.
There you have it; a simple process for properly insuring your valuable accessories and memorabilia. With a little care and attention, it's possible to easily and adequately cover your assets.
If, however, you're still uncertain on how to proceed with the valuation and insurance of your memorabilia and accessories, please get in touch with a member of the Lockton Performance team right away; it will be our pleasure to advise you on any specifics that may be relevant to your assets.