Luxury goods insurance protects high-value items such as jewelry, art, antiques, wine stocks, and rare automobiles. However, its importance extends far beyond these traditional categories to encompass a wide array of assets that often get overlooked. Haute couture, solar panels, vintage books, toy collections, sports memorabilia, and musical instruments are also worth considering. Some of the more surprising treasures that might be in Gilbert homes right now include a collection of three factory-sealed Rocky VHS tapes valued at $25,000, a rare vinyl record of The Freewheelin’ Bob Dylan fetching up to $35,000, the famous $200,000 Princess Diana Beanie Baby, an original 1931 Dracula film poster recently sold at auction for $525,800, or a vintage issue of D.C.’s Detective Comics introducing Batman currently worth $1.38 million. The range of valuables vulnerable to theft, loss, or damage is certainly diverse.
The misconception is that standard homeowner’s or renter’s insurance covers these items. Sarah Scott, an agent with The Mahoney Group, explains, “A basic homeowner’s policy has a $5,000 sub limit for jewelry. Think about what you’ve accumulated, is it more than that? And not just the women’s items that most people think of, men might have extensive watch collections that should be included.” That’s why it’s so important to be familiar with existing policies and have additional, specific policies for unique valuables.
The first step is to consult with an agent to review any existing insurance and plan a path forward. Scott emphasizes the importance of finding an empathetic agent who is a good fit, personally. “You have to feel comfortable asking questions. Insurance is a foreign language to most people.” Next, Scott and members of her team frequently assist clients in facilitating appraisals and navigating interim coverage while waiting for results. They also direct clients to recommended resources for cataloguing, which is crucial for monitoring item status within collections. Once all the important information is gathered, a perk of going with a brokerage like The Mahoney Group is that they work with dozens of providers, so they have the flexibility of really making the right match between clients with special items or circumstances and one of their A-rated carriers. “This is an investment to protect your financial future and you need a program that fits your situation,” says Scott.
For instance, with wearables it’s a good idea to have worldwide protections, so that items are covered even while traveling. Handbags can be tricky to find coverage for, because the risk is greater with something carried around, but Scott says she knows which companies are best to partner with in such cases. Sometimes collections constantly change, with owners frequently buying and selling. In this situation Scott suggests that blanket coverage can be a good idea, which means the total collection can be insured for a certain total amount, e.g. $500,000, with any individual item being protected up to another certain amount, e.g. $10,000.
Additionally, Scott and her team can recommend various professionals to help with different aspects of ownership that shouldn’t be neglected. Proper storage can be essential for maintaining good condition in many cases. When items require relocation, they can provide guidance regarding specialty packers and shippers experienced with high-value goods. Restoration and reappraisal services may be necessary periodically. If an owner decides to sell, The Mahoney Group can facilitate connections with reputable auction houses that specialize in the right categories.
Policy maintenance with The Mahoney Group includes annual check-ins with a detailed review of changes in the market and recommended updates. In addition to staying abreast of current market trends through extensive reading and research, Scott and her team are all CPRIA Certified or working towards it. The Chartered Private Risk and Insurance Advisor certificate is tailored for professionals in the high-net-worth sector, equipping advisors to deliver optimal solutions for intricate challenges. “We are a highly seasoned team,” Scott says, “most of us have been in this industry for decades. Everyone is experienced at accessing risks, understanding what’s happening and where clients are at, educating clients, and knowing how we’re going to protect you and your family.”
Many of Scott’s clients experience misfortune, but they find reassurance in expert care. “We leverage relationships with carriers,” she says. “If something goes wrong, they always do right by the client. We really trust each other, and clients can trust our word.” When a client loses a wedding ring, they often receive compensation with little to no questions asked. If artwork sustains smoke damage in a house fire, policies can cover the cost of proper removal and cleaning. Scott explains, “Everyone is very sensitive to what the client is going through. We’re working to protect things that matter most in people’s lives. Sometimes they’re the things they’ve worked hardest to acquire.”
One memorable story involves a member of Scott’s team and their client’s $18,000 flute insured with Chubb. After the flute was stolen during a routine tune-up, Chubb swiftly sent reimbursement, but they also took the extra step of sending the serial number to a stolen merchandise network. About seven weeks later, the flute surfaced in Savannah, Georgia. Police were notified, and the thief was apprehended. The insured was overjoyed to regain their cherished flute, a gift from a family member, and although they eventually returned the reimbursement, it was only after confirming the flute’s safe return and damage-free condition.
For Scott, the heart of this anecdote is that “just because Chubb cut the check didn't mean they gave up the chase. The money doesn't really replace any valuable article.” Scott understands that sentimentality is what truly makes things priceless.
CONFIDENTLY FACE WHATEVER THE FUTURE HAS IN STORE,
knowing that if the worst happened, your investment would not be lost. To learn more about insuring your most prized possessions, contact Sarah Scott by phone at 480-253-5924 or email at sscott@mahoneygroup.com. The Mahoney Group embodies the values of service: to clients, employees, and business partners; innovation: delivering protective solutions for unique situations; and trust: working together with partners to have integrity and always do right by clients. Additional information at www.mahoneygroup.com.