Hobbies and collections could also mean investing significant amounts of money in equipment and materials. One way to protect them is to have them insured.
Potential coverage needs for your hobbies and collections
Property coverage: Some hobbies are cheap to start and maintain while others require expensive equipment. For example, if you enjoy skiing or snowboarding, the gear alone could be worth thousands of dollars.
Collections can be even more valuable, increasing in worth the larger they get. Not every collection is going to be worth insuring (as collectors of 90s Beanie Babies have come to realize). But if you see your collection as an investment or it is worth a significant amount of money, it’s smart to have property insurance on it.
Liability coverage: Does your hobby or collection have the ability to cause harm to others? If so, it could be important to carry liability insurance. To determine if you require this coverage, ask yourself the following questions:
- Could someone else be injured by activity associated with my hobby or collection?
- Do others come to my home to participate in the hobby or collection?
- Do you often give advice to others interested in your hobby or similar collections?
- Do you ever sell or trade items associated with your hobby or collection?
- Are there items used in your hobby or part of your collection that have the potential to cause significant bodily harm to others?
If you answered yes to any of the above, chances are you should take out liability insurance for protection.
Speak with your insurance provider
Although possible, it’s not guaranteed that your homeowners insurance policy will offer all the coverage you need.
Rather than assuming the policy you have is enough, take the time to speak with your insurance provider to be sure your policy meets your needs. If it does not, speak with an insurance broker about your options.
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