Covering Collectibles Protecting the rising value of valuables. In April 2023, a single pair of Michael Jordan’s game-worn 2 While the sneakers sold at auction for a record $2.2 million. proud owners would likely be able to secure insurance coverage, the situation may be quite different if the shoes had been damaged or destroyed before their value was documented. What lessons might this hold for other passionate collectors? The collectibles markets are notoriously volatile, with prices tending to soar and retreat as different types of rarities come in and out of vogue. While there is little protection for market losses, there are important considerations for protecting the value of collectibles through proper storage and handling and for adequately insuring against loss due to damage or theft. For example, a collection of rare bourbon can lose most of its value if a backup generator does not kick in during a power outage, and the storage space temperature exceeds 70 degrees Fahrenheit. It can also easily exceed the standard rider on a homeowner’s policy if a few cases go missing. The best protection starts with a current assessment of the value of the objects you collect, particularly those that have become the latest hot commodity or an iconic status symbol, like Hermès Birkin bags. That value should be documented by a qualified appraiser, and depending on the nature of your collection, you may need experts to provide guidance on display, storage and transportation. Regardless, a risk advisor should be consulted so you understand the limits of your coverage and can determine how best to protect the investments you have made in the objects you value. 2. Sneaker Freaker, “Michael Jordan’s Six Game-Worn Championship Sneakers Sell For Record-Breaking $8 Million,” February 4, 2024. 4