Best Practices Guide on Protecting Niche Collections: Spirits, Specialty Firearms and Automobilia
Perhaps you connect with the rich history of a 1930’s Ford Coupe, or relish in the thrill of acquiring hard-to-find bourbon or whiskey. Maybe you simply love sharing the unique story behind each piece in your collection with your friends, family, and colleagues. Whatever your motivation, Alliant Private Client helps collectors of all passions—from fine art to fine jewels, and vintage cars to specialty firearms —protect their prized possessions. We understand how devastating a loss can be to a collector, so we work closely with clients to help mitigate risk and, at the very least, limit financial pain should those efforts come up short. With both priorities in mind, we have developed some risk management strategies for three rising types of collectibles.
Spirits Coverage brief: Although a newer collectibles market, many investing in premier spirits (such as bourbon or whiskey) believe that they are covered under wine policies; however, that is a common misconception. In order to protect your investment, we suggest listing them on a valuable articles policy. Safe-keeping best practices: It is unfortunate that carriers don’t cover spirits under wine policies, since it’s much easier to keep them in good condition: They are not nearly as delicate. That said, valuable spirits should be stored in a climate-controlled area, where drastic changes in temperature can be avoided. Unlike wine bottles, which can be stored on their side, spirits are best kept upright (but situated so that they won’t accidentally be knocked over). Finally, labels should be kept intact, as they can provide proof of authenticity and provenance. (Note: be sure to speak with your insurance advisor about a premium “all-risk” valuable articles policy, which will cover your spirits anywhere in the world). Whether its wine or spirits, your collection is rare and well worth the time to make sure it is properly protected.
Specialty firearms Coverage brief: There is a clear delineation between policies for active and inactive specialty firearms. For example, if you are using a valuable articles policy to protect a gun that is damaged during skeet shooting, the loss would not be covered. On the other hand, if an antique firearm is damaged because it fell off a shelf, the policy would go into effect. Many carriers offer active firearms policies, which should be obtained for any firearms that you plan to use for hunting, competitive sporting clay events, and other similar activities. Finally, large collections of valuable firearms—e.g., Civil Warera weapons—must be itemized and scheduled so be sure to speak with your broker accordingly.
Safe-keeping best practices: We recommend that any functioning gun be kept in a locked gun safe, in a temperature controlled room, especially in homes with young children or teenagers. In fact, there are locking devices that require both a fingerprint and combination to gain access which is ideal for your firearms. When displaying inactive antique guns, keep them in a lightly trafficked area on a stand that will keep them securely upright. Don’t store inactive antique guns by windows, as sunlight can be damaging to the item. Finally, we recommend that you don’t let anyone handle your guns, whether functional or not.
Automobilia Coverage brief: We recommend taking inventory and scheduling any automobilia items worth $10,000 or more, either in a valuable articles policy or, if you are insuring a collectible car, in your collectible car policy. As vintage automobilia becomes harder to source, pieces become more valuable. In other words, it’s important to have your collection appraised every two to three years. Your broker will likely have a network of trusted specialists that you can use for your appraisals. Safe-keeping best practices: We have encountered some extraordinary collections, including an entire museum’s worth of vintage stores and restaurants, gas pumps and signs. And no matter how well a collection is insured, much of it is irreplaceable. As such, it’s crucial to consider a piece’s well-being during transit, at the restoration shop and when mounted. If your items are connected to electricity, make sure firewalls and other safety controls are in place to mitigate the chance of a fire. As with any collectible, store pieces in a climate-controlled environment, away from heavily trafficked areas.
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