It’s something we’ve all heard plenty of times: the best way to ensure your success is to invest.
Of course, that’s an extreme oversimplification. You can’t invest in just anything and expect positive results. Even when you make a good decision, you need to take steps to protect your investments.
This is true no matter what they are. Whether high-profile stocks and bonds or a personal collection of rare stamps, when you invest your money into something, you need to protect it. Here are some tips on how to do just that.
Build Your Investment Protection Team
No matter what you’re investing in, it’s a good idea to have a team of experts on your side. These should be individuals who understand the specific type of investment you’re focused on and appreciate what it means to you. Seek out those who can accurately assess the value of your current investment, strategically plan ways to grow it, and determine potential loss exposures and the proper safeguards against them.
Players who might be part of your team include:
An insurance agent with experience in your field of collection to determine what level of coverage you need.
A conservationist to assist you in selecting preservations methods suited to your collection.
An appraiser who is able to accurately reassess the value of your collection on a regular basis, making it easier to correctly insure it.
A financial planner to help you strategically expand your collection.
A stockbroker who can help you navigate investments in the stock market.
What your team looks like will vary based on how you’re investing your money.
Be Strategic in Displaying Your Investments
When your investment is a collection, show it off rather than keep it in storage. Be strategic in your placement. Your prized painting might look stunning above the mantel, but if you actually use your fireplace, it will end up damaged. Antique furniture could fit perfectly in a room with floor-to-ceiling windows, but heavy sun exposure will fade the finish. Consider everything from moisture level to temperature control when crafting your displays.
Know How to Safely Ship Your Investments
Whether you’re loaning part of your collection to a museum or gallery or just looking to safely move your investments between residences, knowing how to properly and safely ship your items is critical. Most collections should be shipped by professional art shippers—even if the collection is not considered fine art. These companies understand how to move delicate and priceless items without damage.
Remember that air shipments require extra care. Use the Transportation Safety Administration’s Certified Cargo Screening Program. Through the program, you ensure your collection is inspected and sealed by certified art shippers, making it less likely that it will be damaged in transit.
Insure Your Investments
Perhaps the most critical step in protecting your investments is insuring them. Most likely, you have already done this, or at least think you have—but there are some common errors you might’ve made.
Assuming Your Homeowner’s Policy Has You Covered: Depending on the value of your collection, the coverage your homeowner’s policy offers could come up short.
Never Updating Your Policy: As your collection grows, so does its value; without updating your policy, eventually the value of the collection will exceed what you’ve insured it for.
Thinking Your Policy Covers Your Collections World-Wide: Unless you have a valued items rider that specifies international coverage, your policy is unlikely to offer coverage outside the U.S.
Forgetting Natural Disasters: Basic policies rarely cover things like earthquakes and floods—both of which are risks here in California.
Neglecting Sufficient Liability Coverage: If your collection could cause harm to someone—antique weapons, for example—you might need more liability coverage than a standard policy provides, based on the risk.
To get the right policy, it’s a good idea to work directly with an insurance broker. They’ll be able to assess your needs and deliver a policy tailored to protect your unique investments.
Leap | Carpenter | Kemps Insurance Agency Is Here for You
At LCK Insurance Agency, we appreciate what your investments mean to you. Our dedicated team can help you navigate the insurance process and deliver a policy that perfectly meets your needs. If you have any questions about how to protect your investments with an insurance policy, get in touch with our knowledgeable agents today.
Tell us about your exposures, and we'll write an article about how we would mitigate your risk.
Leap | Carpenter | Kemps Insurance Agency provides Commercial Business Insurance, Employee Benefits, Life and Health Insurance, and Personal Insurance to all of California, including Merced, Atwater, Los Banos, Mariposa, Madera, Fresno, Modesto, Turlock, and Stockton.
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