For many Canadian collectors, the single biggest risk to their card, memorabilia or art collections isn’t theft or fire – it’s assuming their homeowner’s policy will pick up the tab if something goes wrong.
“The biggest risk is assuming that a homeowner’s policy will cover the collection,” said Michael Wilson (pictured), assistant vice‑president of business development for specialty lines at NFP Canada.
Wilson, who helps lead NFP’s sports card and collectibles program, said that assumption is deeply ingrained, especially among everyday collectors who are not high‑net‑worth clients with bespoke wordings.
He drew a distinction between mass‑market home policies and the more expansive coverage sometimes available through bigger carriers.
For the typical policyholder insured with mainstream carriers, however, the story is very different. Wilson said standard home policies apply special limits to categories like collectibles, jewellery, coins and spare automobile parts.
“These limits are certainly insufficient for many of these collections out there,” he said. “On average, there could be a special limit of $2,500 to $5,000 worth of coverage. If you’re really lucky, you could have coverage of $7,500 or maybe $10,000. But in most cases, those aren’t going to be sufficient limits for a $50,000 or $100,000 card, let alone the rest of the collection.”
The issues don’t end there. Home policies come with deductibles – typically $500 to $1,000 – that will apply to any claim. And a loss paid under the home policy will follow the insured for years.
Certain causes of loss, or certain categories of items, may also be restricted or excluded entirely under standard forms. Wilson said that for serious collectors, the home policy simply isn’t designed for the exposure.
“Instead, they should have it on a collectibles policy,” he said. “It gives a little bit broader coverage and there are a few perks with the actual coverages, with deductibles and guaranteed value coverage as well.”
Beyond the coverage gap, Wilson said many collectors underestimate practical risks such as theft, accidental damage and transit.
“Maybe there’s also transit exposure – maybe they’re going to PSA for grading, or they’re sending it to a show or an event, and then some damage or loss occurs to the item.”
Cards and memorabilia shipped across borders for grading, authentication or sale can be lost, stolen or damaged in transit. Collections displayed at shows or stored off‑site introduce further complexity.
Storage and handling present another set of vulnerabilities. Collections kept in basements, garages or non‑climate‑controlled spaces face humidity, mould and moisture that can degrade paper, ink and signatures over time.
Even simple handling can matter.
“If it’s a card, your fingers can leave grease and different stuff on it, it can bend and fold,” he said. “It can rub off a signature or a portion of a signature there.”
One of the biggest technical issues, Wilson said, is keeping sums insured aligned with rapidly moving market values.
“Valuation moves so fast,” he said. “You have to make sure that the insurance reflects the current market values, so there are no significant shortfalls at the time of a claim.”
Relying on a contents limit or a notional value tucked inside a home policy can leave collectors badly exposed if the market spikes for particular cards, comics or memorabilia.
“If they have it under the impression that it’s covered under their contents, under their home policy, there’s a huge shortfall at that point,” Wilson said. “They’re going to learn fast.”
Wilson’s advice to collectors starts with getting a clear picture of what they actually own.
He said the starting point for any collector is to get a clear handle on what their collection is actually worth, which in practice usually means having key pieces graded, appraised or assessed by a specialist.
He recommended documenting collections – maintaining a spreadsheet of items, supported by photographs – and staying current on market trends and auction results.
“Make sure that your insurance ultimately matches the reality of what you own,” he said.
From there, he urged collectors to work with brokers and insurers who understand the space and can arrange standalone cover that addresses accidental damage, theft, transit exposures and value fluctuations – rather than relying on the false comfort of a standard contents limit.
