We buy, consign and sell antique bottles in our online auction - including old whiskey, bitters, sodas, water,

beers, inks, flasks, spirit, medicine, historical, fruit and pickle jars, utility, barber, gin, Dutch onion, nippers and more!

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A lot of collectors out there are unknowingly walking a very thin line when it comes to the security of their collections. Years of digging, bargaining and hoarding their favorite bottles have produced quite a collection, one that anyone would be lucky to have. Their only problem is, that after all the time and energy spent amassing their hoard, it’s in jeopardy because they don't have their collection insured.

We've had insurance for American Bottle Auctions for many, many years. That insurance also includes my personal collection. Recently, I also insured some baseball memorabilia that is dear to my heart. The policy for bottles includes coverage of up to $50,000 for anything sent to us via UPS or anything we send with a signature required shipment. It includes breakage during transit as well as breakage by mistake by a customer, in our office or at a show. If a customer drops a $5000 bottle, it's paid for. For $150,000 in coverage we pay approximately $1200 a year. For us, $100 a month for piece of mind is priceless.

We had to submit a claim a few years back. Two thieves that were eventually caught, but were never caught with the goods broke into my office. When I called my insurance company, Collectibles Insurance Agency, they got back to me right away and sent me all the necessary forms. It turned out that the thieves didn’t' steal any bottles but rather some of my baseball memorabilia. After talking with my State Farm agent and finding out that they covered just a minimum of what was missing, Collectibles Insurance jumped into the fray and paid for items I couldn't believe they would cover. This isn't an advertisement for them, but they really came through. They were covering any valuable in my office and I was pleasantly surprised when a check for $7000 arrived in the mail.

I know a lot of collectors who don't have any insurance at all for their collection. I think a lot of people have most, if not all, of their homeowners insurance covered by one company, I know I do. One that covers homeowners, auto, life and some personal items like furniture and jewelry. When you deal with your insurance company, even one that has been covering you for years, they usually will ask for appraisals, bill of sales, photographs and often certificates of authenticity. That's where a company like Collectibles comes in extremely handy. They specialize in collectibles and, instead of asking for all of the previous mentioned items; they simply want to know what the total value for your entire collection is worth. They have what is called an Annual Cost Table, which is pretty much a laundry list of what your collection is worth and what the cost of insuring it will be. The amount changes if you have a burglar alarm (highly recommended), a safe and or both. It also takes into account if your items are in a public storage and there are certain limits as to where and how much can be stored in certain places.

Let's say that you don't have a central station alarm or safe. To insure $100,000 worth of collectibles, you would pay $316 a year for basic insurance, but that stops at $60,000 for coverage of your $100,000 collection. For full coverage, without the alarm, you would pay $508 a year. If you have an alarm, and or safe, and want full coverage for burglary and theft coverage it would run you $476. If you have $200,000 worth of collectibles, and want full coverage (and you have an alarm), it would run you $701. Not bad for full replacement value. Of course if you have a million in collectibles, it can all be covered for a price. As a business, we pay more since they insure against breakage in transit and other situations a private collector might not have to deal with.

Why doesn't everyone have insurance? After all, a burglary, fire or other catastrophe could happen at any time, destroying everything you have. I talked with Dan Walker of Collectibles Insurance Agency in Westminster, Maryland, and asked him that very question. His response was, "Because it's only going to happen to the other guy. They think it's complicated and expensive. They also think it's covered in their homeowners insurance". The problem, he points out, is that after the furniture and other items are paid for, there's usually no room left for a coin or bottle collection. "We have a blanket policy." Dan explains, "You just tell us what your collection is worth and itemize anything over $5000. If anything is stolen or lost, you are covered up to the amount you've claimed as your collection value. That includes anything valuable in your house, not just bottles." In addition, Dan points out, "Everything is covered (up to the insured value) in your home and up to $60,000 outside of your home."

Collectibles Insurance is one of the only insurance companies of their type. Go to a large bottle show and chances are you'll see their booth. I remember having a customer walk up to a table I had in Nashville one year. When he dropped the bottle he was looking at on top of another valuable bottle, Dan, whose booth was next to mine, smiled and simply said, "You're covered." Thankfully, the bottle didn't break.

Despite their success in a collectible insurer niche, it's not all peaches and cream. Dan explains, "The thing that’s troubling us right now, is the 31 million dollars in coverage we have in the three southern states that were hit by hurricane Katrina".

What about alarm systems? "I recommend an alarm, " he says. And the most important part of insuring a collection? "The most important thing is to get a carrier, who's going to pay off," Dan points out.

Insurance is exactly that, insurance. If anything happens to your stuff, you will be paid what it would cost to replace it. Unfortunately, for collectors of rare and valuable items, there are some items that can never be replaced, but they can, at least be insured. If a friend (ex-friend) comes over and accidentally drops a valuable bottle and breaks it, it's nice to know that it's covered. Thankfully, most of us will never lose their entire collection. That's why you can buy partial coverage which covers the loss of just a piece or two.

For collectors of coins, stamps, baseball cards or small statues of Norman Mailer, you don't have to worry about breakage as much as the items being stolen. Bottles are another ballgame. I cannot understand why some bottle shows are still being held in cattle barns with concrete floors? But, that's another subject. Bottles are delicate objects and they break, sometimes with just a temperature change. Insurance will cover it… ah, peace of mind.

For those of you who have a collection worth a half-million dollars, think about it. For the cost of one bottle that you haven’t looked at in four years, all of your valuable possessions would be covered against burglary or theft. And, in the event of a catastrophic event, hey, you’re covered. If you think about it, a little insurance isn't a bad idea. A lot of insurance isn't a bad idea, either. In California we have earthquakes, in the South (as we know)… hurricanes, and in the Midwest… tornadoes. Wherever you live, there’s always something. Whatever insurance company you might finally decide to use, just read the fine print and be assured that the next time your cousin Bruce comes over and, after three martinis, picks up your green Indian Queen, you can calmly think to yourself, "Hey, I'm covered".

By Jeff Wichmann

10/12/05

Following are responses to this article:

Jeff, I've had insurance on my collection for years, with one claim which was paid immediately. As you know, I've a lot of stuff and the insurance is quite expensive, but I figure the collection increases in value each year by the amount of the premiums. Of course I don't figure on ever selling my collection, but down the road, someone probably will.  -Ken Schwartz

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These days, I cannot imagine not having insurance on my collection.  For some time, I lost considerable sleep worrying about what might happen.  That phase ended quickly - I got up one morning and had a policy by the end of the day.  Getting the policy is painless and it is worth every nickel.  I agree with you Jeff that many collectors do not have insurance and refuse to believe anything could ever happen to their collection.

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Thanks for the word, Jeff.  Maybe that'll prompt everybody (including myself) to go ahead and make the move and insure our stuff.  True that some one or two of a kind pieces can never be replaced, but the money would sure make things a bit more bearable in the event of a loss.

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Hi Jeff, I got a policy from Collectable Ins. last year. The premium is much less then  when I  had a rider on my home insurance policy years ago. I feel much better having my beauties covered, including a few nice ones from your auctions.  Hopefully, I'll never have a claim, but you never know what will happen!!  Marty K.

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Insurance for your collections is critical. There are many avenues and companies to approach about your own collections. But firstly, and most importantly, you must have a detailed inventory, and if possible, photographic proof of the items and collection. The industry is also leaning toward an outside appraisal for your collection, which you should keep up to date, perhaps revisiting the value every five years or so.

Once upon a time, thieves stole the TV, stereo and silver. Now they leave the TV, stereo and take the rare baseball memorabilia, bottles and rare books. Be responsible to yourself and family - after all, your investment in your collections is part of your life svaings. Look at it that way, and protect it. -Fred Holabird, CEO / Holabird Americana_