Insurance for custom knives - what's your experience?

mwschilling

mwschilling

Joined
Aug 29, 2012
Messages
1,355
I wanted to post a thread about insuring custom knives. My story is from a collector's perspective but I think it's important for makers and vendors (photographers, sheath makers, etc.) I apologize if most of you already know this information.

Until recently I assumed my homeowners would cover any losses. For the most part, that is not true. Typical homeowners insurance is limited on collectibles. I actually thought about insurance for the first time due to the cost of shipping with insurance. I sent three knives to a Caleb Royer for photos and the insurance to ship them was more than the cost of his work to photograph them. I thought at the time, "I can't afford to do this." Then I discovered insurance for custom knives that would cover all my knives, including when I shipped them home from a show or to a vendor for work. I bought a policy a few days before Blade Show and it has already paid for itself. All the knives I shipped home would have cost nearly a hundred dollars for insurance, my policy covered them. I shipped more knives for photos and was able to forgo the postal insurance, thereby cutting the cost of that project nearly in half. Same thing when I recently shipped a knife to Paul Long, the insurance would have been several times the normal cost to ship but my policy covered them. If you think about it, the insurance to ship to and from Paul Long would have added $100 to the cost of the sheath.

I'm not advocating any particular insurance company but wanted to share how insurance has not only given me peace of mind but how it actually has saved me money.

This has been a public service announcement.
 
That's a good thought, Mark. The insurance is usually the largest part of the shipping costs and can get prohibitive if shipping often. I may look into this.

Thanks,
Gary
 
What about a small amount of users? Are they considered a collection or a box of tools? Do firearms fall under this same "collections" clause usually?
 
Macchina said:
What about a small amount of users? Are they considered a collection or a box of tools? Do firearms fall under this same "collections" clause usually?
Click to expand...

You obviously need to check your specific policy. Typically art, furs, firearms, coins, and other collectibles have limited standard coverage, maybe $1000 or $2500 total. Some have limitation on what is covered, theft, fire and maybe only when in the home. You can get riders to increase but I found going through a carrier that specializes in collectible was much cheaper. The same amount of coverage through my homeowners would have been several times what I paid for my specific "collectibles coverage".

Others here my know more about specifics but I suspect it depends on your coverage.
 
I have home owners of course like everyone else. I do however have a separate policy for my gun/knife collection.
I have the policy with an insurance company that specialize in collections wheather it be:coins, knives, guns, stamps etc.
www.collectinsure.com
They are great people and it gives me piece of mind knowing that my gun/knives have their own policy.
 
Would this type of insurance cover a maker's inventory and provide coverage while shipping a sold item?

Thanks
Ken
 
KHall said:
Would this type of insurance cover a maker's inventory and provide coverage while shipping a sold item?

Thanks
Ken
Click to expand...

Yes, you can find exactly what you want by contacting Collectibles Ins Agency ("CIA") at www.collectinsure.com.

Many collectors utilize their services. I've personally been with them for years. Their service is superlative. Pretty much every collector I know who insures their collection does so with Collectibles.

Collectors are only required to schedule any single item over $5k, though it's obviously a must to keep excellent records in order to provide good proof of loss, should one occur. They also offer a policy specific to dealers, but not exactly sure about makers.

And as to the question of whether their coverage extends to in-transit "paid for" items, yes it does, until such time as receipt of item is accomplished. I specifically asked that question some time ago of CIA. An insurable interest continues to exist until receipt by purchaser.

It's easy to rationalize such a policy if you ship or receive shipment of valuable (say $5k) knives around six or seven times a year, since the cost to otherwise insure the shipments is generally more than the annual CIA premium.
 
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Macchina said:
What about a small amount of users? Are they considered a collection or a box of tools? Do firearms fall under this same "collections" clause usually?
Click to expand...

mwschilling said:
You obviously need to check your specific policy. Typically art, furs, firearms, coins, and other collectibles have limited standard coverage, maybe $1000 or $2500 total. Some have limitation on what is covered, theft, fire and maybe only when in the home. You can get riders to increase but I found going through a carrier that specializes in collectible was much cheaper. The same amount of coverage through my homeowners would have been several times what I paid for my specific "collectibles coverage".

Others here my know more about specifics but I suspect it depends on your coverage.
Click to expand...

I haven't done anything for my knives (not enough value there) but my firearms collection surpassed my $2500 coverage on basic renters insurance. I added a rider ($3500) to cover the firearms for about $10/month. It covers it from everything - fire, theft, even if I just lose them. The rider also has ZERO deductible, whereas my renters insurance has a $500 deductible.
 
betzner said:
Yes, you can find exactly what you want by contacting Collectibles Ins Agency ("CIA") at www.collectinsure.com.

Many collectors utilize their services. .
Click to expand...

YEP, that's who I bought my policy from as well. A couple people have sent me PM's asking this question. I didn't want anyone to think this was intended as an advertisement for Collectibles Insurance but glad others have had same positive experience. It was VERY simple process and quick. I literally got mine a couple days before Blade because I expected to be shipping knives home or putting in checked bags.
 
I've been with www.collectinsure.com for 10 years or so. The yearly premium is less money than the amount I would spend insuring every package I ship. This also allows the packages to not have any sign of insurance on them, which takes them off the theft radar. Then there is the traveling to shows and such. My knives are covered no matter where they are.
 
Collectors, is the insurance based on agreed value? If a knife's original price is $500.00 but secondary is $1500.00 will they pay the secondary price? Let's say you go to a knife show and Ivan the Purveyor has the latest from a maker in high demand, you pay the $1500.00, Ivan makes a cool grand, will the insurance honor that?

Be interesting to hear from Mike Donato who almost had a catastrophe, was the insurance standing behind his valuations?

For now I'll just pay the insurance or in some cases split it with the buyer.
 
I don't believe you ever know how good (or bad) an insurance company is until you have a claim.
I had a claim with Collectibles Ins Agency, they asked a few questions and I received a check for
full value of the knife 30 days from the day I reported the lost.
 
When you ship the knives, do you just ship in a standard flat rate box?
Or is there a special way you ship them?

Seems like when ship with the USPS - the blue label helps the package move along and get there.
Cause they see the blue label and know it has insurance on it, and usually the last person handling it has to sign for it in route.
Have shipped thousands of knives and never lost one, some took a while to arrive, but they finally did.

I may have to look into this.
 
T.A.DAVISON said:
When you ship the knives, do you just ship in a standard flat rate box?
Or is there a special way you ship them?

Seems like when ship with the USPS - the blue label helps the package move along and get there.
Cause they see the blue label and know it has insurance on it, and usually the last person handling it has to sign for it in route.
Have shipped thousands of knives and never lost one, some took a while to arrive, but they finally did.

I may have to look into this.
Click to expand...

Collectors insurance requires a signature conformation which I add to Priority Mail packages. I send most of mine Express Mail and it gets signed for anyway...
 
Don,

Thanks, Ill look into the insurance, why not if it works, and you save money.
 
FYI, another BF member told me offline that he and others have had good experience with AXA-ART Insurance for their high end custom knife collections. Just thought I'd pass that along to those looking for options.
 
My insurance company covered my knives and swords as fine art, he basically said if they are one of a kinds or not available off the shelf they can be classified this way. Each item is listed when I get my yearly home owners insurance bill.
 
gregorio said:
My insurance company covered my knives and swords as fine art, he basically said if they are one of a kinds or not available off the shelf they can be classified this way. Each item is listed when I get my yearly home owners insurance bill.
Click to expand...

That sounds great while the knife is at home in a safe, but what about traveling around in the back of a delivery truck?

Not knocking you, could be a good idea for folks looking for some protection like that.
 
T.A.DAVISON said:
Seems like when ship with the USPS - the blue label helps the package move along and get there.
Cause they see the blue label and know it has insurance on it
Click to expand...

Identifying that the package is 'insured' has always concerned me a little as it informs everyone that it's contents are of value perhaps even increasing risk of theft.

I agree with Al as most home owners insurance only cover 'declared collectables' at home. You are at most risk when knives are away from home or
while being shipped.

I also feel it there's ever a claim due to knives being stolen or damaged, there's definite advantage to having your knives insured with a company that is familiar with custom knives as opposed to a general insurer who has little or no knowledge regarding values or circumstances surrounding replacement.
 
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