Insure Your Firearms to Protect Your Investment

By Meredith Kay

Whether you hunt for sport or sustenance, keep guns on hand for security reasons, collect antique guns as a hobby, or engage in shooting sports competitively, the firearms you purchase become valuable assets that should be protected. Most of us know that we need to insure our homes, our vehicles, our health, and our lives, but did you know that it is also important to have separate insurance coverage for your firearms?

Most hunters, collectors, and shooting sports enthusiasts will often have a collection of firearms, and hopefully, they are stored and secured properly to avoid unfortunate accidents and theft. However, unexpected life events do happen, so it’s important to be prepared and to protect your collection just as you would anything else that you consider a valuable asset. Firearms insurance is a specialty insurance product that covers individual, high-value individual firearms, and collections. Policies may cover the cost of replacing lost or stolen firearms, repair specialty guns, and some policies may even cover the cost to transport firearms in certain situations.

Coverage is valid worldwide in most cases, and the values are calculated according to the type of firearm insured. Firearms are valued for insurance purposes in the following ways: n Actual Cash Value is determined by taking the replacement value for modern firearms, including handguns, shotguns, and rifles. n Scheduled Value is the amount that you declare for each firearm or collection as you list it on the insurance application or policy. However, be aware that fluctuating values of collectible firearms, and sudden increases in market values could put you in an unfavorable position if your policy allows loss recovery only up to the amount shown for each firearm on the original policy schedule. It is important to audit, and possibly update, your policy periodically. n Fair Market Value is simply the value of your firearm at the time of loss. This is the most common type of coverage valuation. If you are insuring a collectible gun, and the value increases over time, then the insured value will increase as well.

Some insurance policies will require the applicant to list and describe each firearm separately, especially if an individual gun is valued over $10,000. However, if your gun collection is smaller, or made up of several less-expensive firearms, then you may apply for blanket coverage up to the total value of your entire collection. In addition, most policies will automatically include coverage for any newly acquired firearms for a set amount of time. This allows the gun owner time to add the new purchase and update the policy.

Mike Cook and Bo Winston, owners of Cook Winston & Company in Boerne, Texas, specialize in fine sporting arms, appraisals, and firearms insurance. They evaluate your firearms inventory, provide an estimated value, and recommend the right insurance product to effectively protect your investment.

According to Cook, “Protecting your firearms investment is very important, and the cost to purchase insurance should always be factored into any buying decision. Whether you collect antique firearms, or you have a small arsenal of hunting and sporting arms, you’ll want to make sure that your assets are well-protected at all times.”

It’s important to note that while some homeowner’s insurance policies will cover the theft or loss of firearms stored in your home to a certain extent, coverage is usually minimal, with limits ranging between $1,000 and $2,500, depending on your policy. Therefore, it makes sense to acquire additional insurance from a company that specializes in firearms policies. This will ensure that you’ll find the right coverage for your collection that offers the most comfortable deductible and premium option for your budget.

To obtain firearms insurance, a gun owner will need to find a licensed insurance agent or company and fill out an application that details the types of firearms in the collection, the value of individual guns worth over $10,000, where the guns to be covered are located, how they are secured, and a description of the security surrounding the collection to be insured. There are also territorial restrictions that may limit how much coverage can be obtained, based on where the guns are stored, along with limitations regarding travel restrictions for covered firearms excluding certain territories and countries where possession is prohibited.

Quality firearms are always a great investment. Responsible gun owners take pride in their collections, so it only makes sense to protect that investment with insurance. You’ll find peace of mind knowing that the value of your assets is as secure as the safety latches on the guns you cherish.