Insurance and Antiques

QUESTION: I’ve been collecting antiques and such for a number of years. Do I need extra insurance or will my homeowner’s policy cover what I have?

ANSWER: As a collector, you’ll want to take care to see that your treasures are adequately insured. And even if you have coverage, you may find that coverage you purchased several years ago leaves you financially vulnerable today.

Most collectors use one of three types of insurance—that found in a standard homeowner's policy, special endorsements to that policy, or a "floater" policy for valuables such as art and antiques.

The policy that covers your home includes insurance for your personal property as well as the structure it's housed in, usually at 50 percent of the amount of coverage for the dwelling. This means that if you have insured your house for $150,000, your belongings are protected for up to $75,000.

Is this amount sufficient for your collection as well as all your other belongings? That all depends on what your collection contains. If you have a small collection of "collectibles" or less expensive items, the coverage in your homeowner's policy is probably enough. But keep in mind that standard policies usually fix limits on certain types of items such as currency, documents, silver, and jewelry. You should read your policy carefully to see if these limitations affect your collection.

The coverage in homeowner's policies is "unscheduled," that is, it groups all of your goods together rather than listing and valuing them separately. Should a theft or fire occur, it’s your responsibility to prove ownership and the value of the items in your collection. The insurance company will then calculate your losses on the "actual cash value" of those items, figuring in depreciation. If you collect anything other than certifiable antiques, complications can arise over the settlement.

Your insurance company may deem "old and worthless" items you consider “vintage.” So you should keep receipts and other records, especially for less expensive "collectibles" and offbeat items—be sure to print out receipts for anything you purchase at online auction sites. Though claims adjusters are usually on target, any documentation will help —the more the better.

Even if you decide to work within the limits of your standard homeowner policy, you may find that increased coverage is necessary. While that $75,000 may sound like a lot of insurance, you’d be surprised how quickly the normal, everyday contents of a house add up, leaving only partial coverage of your losses.

To remedy this problem, most policies offer the option of a special "endorsement" which allows for a higher percentage of personal property coverage for an additional fee. If you have a collection of any size or value, you’ll probably want to take inventory of your home's entire contents to see whether you should purchase such an endorsement.

Finally, you can also purchase a separate policy to cover valuables such as art, antiques, silver, and the like. And in this case, silver means Sterling, not plate. These policies, known generally as "floaters," cover "scheduled," or listed, items. Each item is listed separately with its own value, usually by means of a written professional appraisal. Those cheap or free online appraisals just won’t do. The benefits of floaters are that each items is covered for its full replacement value because ownership and value are  pre-established, In addition, most floaters will protect the collection against loss as well as theft, a benefit not available through most homeowner's policies.



The cost of such a floater will of course depend on where you live and what you’re insuring. Very portable items of recognizable value command the highest rates. For instance, the amount for jewelry is always higher than for artwork. Prices may also be lower if you store your collection—or part of it—in a safe or safety deposit box, or if your home has a security alarm system. If your collection is worth more than $50,000, your insurance company will probably insist that you install such a system.

To read more articles on antiques, please visit the Antiques Articles section of my Web site.  And to stay up to the minute on antiques and collectibles, please join the over 30,000 readers by following my free online magazine, #TheAntiquesAlmanac. Learn more about  La Belle Epoque in the 2020 Spring Edition, online now. And to read daily posts about unique objects from the past and their histories, like the #Antiques and More Collection on Facebook.

Clean Out and Clean Up

Garage and yard sale season officially starts today, April 1. No, it’s no April Fool’s joke. As the weather gets warmer, people start thinking about doing some Spring cleaning and getting rid of a lot of junk that’s piled up. I thought I’d take a break from the usual question-and-answer format to offer some tips on setting up and selling at a garage or yard sale.

It’s time to get rid of that old waffle iron, those old copies of National Geographic, your teenager's baby clothes, grandma’s costume jewelry. But before you do, you should do a bit of planning.

From now until the end of October, depending on the weather in your region, Americans will hold more than 10 million yard and garage sales. These sales are the bottom rung of the antiques and collectibles market. It’s the entry-level position where items, long hidden in attics and basements, see the light of day and join the thousands of others in the giant stream to flea markets and antique shops and coops.

Since garage and yard sales began in the mid-1960s, they have become an estimated $1.5 to $2-billion -a-year business. For some buyers its entertainment on a Saturday morning, for others it’s serious business finding inventory for their booths and shops.

Sellers get rid of a lot of junk they don't need and in the process make a few bucks. The average garage sale takes in about $150 to $200. And it's all free. These sales are one of the great unregulated sectors of the U.S. economy. No one cares about child labor laws, sales tax, or product guarantees. And generally, everyone has a good time.

Of all the items sold, dressers, beds, tables, especially smaller ones, are always in demand. More buyers are looking for antiques and collectibles, many of which end up on eBay. Antique mirrors, furniture, art, rugs, pottery, and glassware often sell at garage sales for a fraction of the price they’d sell for in a dealer's shop.

Fabrics—curtains, blankets, quilts, and tablecovers, all expensive in stores, sell well, especially if they’re  custom-made.

Household items are another favorite. Everything from a salad spinner to a potato peeler, new or old, sells, especially if priced under a dollar.

While the majority of buyers at these outdoor sales are women, men like to poke around, too. Tools of all sorts are popular with them. Antique tool collectors scour the sales far and wide looking for that piece to fill out their collection.

There’s even a market for old sports equipment—ice skates, tennis rackets, old baseball gloves— anything from the early days of a sport, especially if they’re in good shape.

To make sure a garage or yard sale is profitable, the seller must plan carefully. It’s a good idea to go to a few sales in the neighborhood to see what others are selling. And it’s just as important to watch the crowd since many of them are regulars who will end up at future sales.

It’s important to check local ordinances. Some municipalities don't care. Others have restrictions on sales. Many require a permit which is often free. Some restrict the number of sales per year.

Good weather is important. While the seven-day forecast can’t always be trusted, it’s a start. But plan for any contingency. Setting up a backyard canopy is good in any case as it will draw visual attention to the sale.

Ads for the sale need to be specific. While a seller doesn’t have to list every item, listing groups of items is a good idea. But don’t say ‘Antiques” if there’s only one or two pieces. And unless the ad states "No early binds," eager shoppers will show up way ahead of time. And don’t fall for some sad story on a Thursday evening about how the person has to work on Saturday and can’t come to the sale. Could they just have a peek? The answer is no. Being fair to all buyers is the mark of a good seller. A telephone number in the ad is helpful for directions and for people to see if you have what they want.

Attract buyers with  easy-to-read street signs, balloons, or streamers. Make all signs legible and the lettering dark enough to read while driving by.

Prepare everything ahead of time. Most of the action occurs in the first hour or two. Price all items. No buyer should have to guess how much an item is. Ask friends to help out and make sure to have plenty of dollar bills and coins on hand for change. Many buyers stop at an ATM machine before setting out and come armed with $20 bills.

Offer several boxes of smaller items that buyers can rummage through. Perhaps group these items by price from low to high in separate boxes. This stimulates buying. Also, a table of giveaways keeps people lingering. Some sellers serve coffee, always good at the beginning and end of the garage and yard sale season..

For those selling antiques, it’s important to know how much they’re worth before selling at some ridiculous price. But remember, this is the lowest place in the antiques market, so even valuable items can only go for a fraction of their value. A good rule of thumb is to send valuable pieces to auction. 

Be flexible on pricing; especially at day's end. Sometimes, it's better to get rid of an item than make money on it. One seller smashed an old crock against a tree rather than sell it for $1.

Next week: Tips on buying at garage and yard sales.

The Quagmire of Value

QUESTION: I just inherited a lovely old armoire from my mother. As we were taking stock of her things, an antique dealer, who had come to look at some other items, told me he’d give me $1,000 for it. I really love the piece and am not considering selling it, but I would like to know its value. Can you help me?

ANSWER: While the answer to this person’s question may sound simple, in fact, it’s far from it. What type of value does she mean–retail value, insurance replacement value, fair-market value, auction value, or cash value? In the end, each of these values will be a different amount. Other factors determining value are age and condition. So where to begin.

Let’s start with retail value. This is the price for which an antiques dealer expects to sell an item after marking it up from the price the dealer paid for it in order to make a profit. This amount can  be anywhere from 20 to100 percent of the dealer’s purchase price.

The amount of money it would take to replace an item from a antiques shop or online if it were lost, stolen, or damaged is called the insurance replacement value.

The price that an item would sell for on the open market between a willing buyer and a willing seller is known as the fair-market value. This is also the value that’s used when an item is donated to a charity or is part of someone’s estate.

And when someone puts an item up for auction, the price that an appraiser feels the item should bring at auction, based on comparison of like items and recent other auction sales, is known as the auction value, but has nothing do with the actual value of the item.

However, being told something is worth a specific value is meaningless if the appraiser doing the appraisal has no knowledge of the item itself or the market for it. And auction prices, such as those eBay are not an indicator of true "worth," since many of these sales prices are inflated many times over in the heat of bidding up an item. And a verbal appraisal is worth nothing without a written one to back it up, especially in the case of settling an estate.

To learn more about how to value your antiques and collectibles, read my article, “What’s It Worth?,” on my antiques Web site, The Antiques Almanac.