Homeowners insurance blog

Consider Your Hobby’s Insurance Implications

Celebrate the last few days of National Hobby Month by protecting what you love to do. No matter what your hobbies are, homeowners insurance can help protect them. Customize your policy to cover what you value most.

Regardless of your hobby type and what you want to protect, create a home inventory. A home inventory can help you remember and substantiate what you own; it doesn’t matter you collect stamps or own an extensive set of camping equipment. An inventory also can prove to be an invaluable organizational tool. Catalogue your possessions by listing their characteristics, purchase date and price, and current value. Include a photo when possible. You also can use our free downloadable home inventory tool.

Following are three common types of hobbies and how home insurance can help protect your interests in each:

The collector

If you’re hobby is collecting (fine art, coins, baseball cards), you probably have thought about what would happen in a catastrophe. You probably haven’t thought about the fact that home insurance policies typically set strict limits for collectibles, sometimes as low as $200. Protect what you collect by considering these insurance add-ons for additional coverage:

  • Endorse it: Schedule an endorsement to increase the limits of your existing home insurance policy. Your monthly premiums may rise, but you’ll extend your policy’s collectibles coverage. This has the advantage of keeping all your coverage with one provider.
  • Float it:  A personal articles floater covers your collectibles via a separate policy. You usually purchase this protection from a carrier that specializes in your collectible type (i.e. fine art or stamps). Floaters, in addition to having higher policy limits, typically don’t have a deductible. They also often offer protection for items in transit and stored away from the home. The downside: Floaters usually cost more than endorsement.

The creator

Even if you’re not a collector, the fruits of your labor should be protected. Whether your passion involves paints, craft paper, cameras, or cloth, the materials probably cost a lot. A creator’s workspace, typically in the home, also should receive protection to prevent these materials from being lost, stolen, or damaged.

Standard home insurance policies cover your home and all of its contents, and an endorsement can raise the policy limits for high value equipment such as high-end stereos or cameras. If security remains a concern, a home security system can protect your tools and could earn you a home insurance discount.

The adventurist

More of a doer than a creator or collector? You must worry about your equipment, especially when it’s stored out of the home. Good news: your home insurance policy protects the contents of your home, even when they’re in your car or a storage facility. If you return to your vehicle and discover that your golf clubs, climbing equipment, or kayak have been stolen or damaged, you can replace them with your home insurance policy. Remember that a home inventory can help the claims process move quicker and more smoothly.

Keep doing what you love in 2014, and keep searching for new horizons as well. Just make sure to add new collectibles, tools, and equipment to your home inventory and to afford them the protection that they deserve. Happy hobby month (until February comes along), and happy hobbying!