By: Carlton Thomas Ruppert Jr., President of Thomas Carlton Insurance Services

When it comes to helping high-net-worth clients (HNC) obtain comprehensive, agreed-to-value insurance coverage, it is about far more than simply adding zeros to the premium.

HNCs, as they are called, have unique exposures that demand highly customized insurance policies, with specialized coverages and limits. Specifically, when protecting the collections that fuel their passions, agents and insuring partners must take extra care to assess the uniqueness of the items collected, firmly confirm values correctly, and know whether the items are continuously stationary or need Inland Marine coverage because of their mobility.

Passion Assets and Unique Exposures

One of the great benefits of wealth is the ability to indulge in the things that bring joy—fine art, vintage automobiles and boats, jewelry, or collectibles that remind them of their world travels. Whether a collection is driven by sentiment or financial investment, collectors want reassurance that what they value is properly protected.

In many ways, insuring collections is one of the most exciting and interesting areas of insurance, precisely because no two collections—and no two collectors—are the same. A collection can consist of any number of items a person is passionate about or finds valuable, either individually or as a group. This can include:

• Antiques, paintings, and sculptures
• Watches and jewelry
• Model trains and cameras
• Wine collections
• Sneakers, bottle caps, and comic books

These items can hold significant monetary, historical, or sentimental value. Collections may be worth a few thousand dollars or, in some cases, hundreds of millions. Coverages can be tailored to fit the size and scope of the collection, as long as the items are owned by an individual and not used for business purposes.

The Importance of Appraisals

As collections grow, coverage requirements quickly become more complex and specialized. Factors such as location, the nature of the items, the age and breadth of the collection, and values established by an appraiser all play a role. While some collectibles may receive limited coverage under a homeowner’s policy, more extensive or valuable collections typically require dedicated protection.

A current appraisal is the most accurate way to determine insurance needs. Carriers may recommend reputable third-party appraisers or offer in-house options, but the appraiser must always be a disinterested party.

If an appraisal is outdated, blanket coverage can serve as a temporary solution, setting maximum limits by category—such as fine art, jewelry, or silverware—until proper valuations are completed.

Provenance, Geography, and Value

Beyond base value, collectors often want coverage that accounts for additional factors such as appreciation, provenance, location, transit, and potential diminution in value following a loss.

Geography also matters, as collections located in areas prone to hurricanes or wildfires may carry higher premiums. Provenance, in particular, can add significant intangible value. A vintage watch, for example, may be insured for one amount—but if it once belonged to Steve McQueen or Natalie Wood, and documentation supports that history, the item’s value and coverage needs can increase substantially.

Insuring collectibles requires deep knowledge and careful planning, but it also offers remarkable flexibility in structuring coverage that truly reflects what the collection is worth—and what it means to its owner.

---

About the Author

Carlton Thomas Ruppert Jr. is the President of Thomas Carlton Insurance Services, insuring high net worth individuals and families located throughout the US, and specializing in protecting private collections of all types and sizes.

For more information about a customized quote tailored to the unique assets in your collection, please email cthomas@thomascarlton.net or call 949-996-3260.