Question on Insurance

[Cigarsandmalts]

Bit of an odd question: many of us here at FOH have sizeable cigar collections worth a not insignificant amount of money - does anyone carry insurance policies on them? Does a regular homeowner's insurance policy cover "assets" such as cigars, whiskies, and fine wines?

We can all easily get insurance on our watch/jewelry/etc collections, just wondering if its just as easy on our vice collections. 

[xtcat9k]

I emailed my insurance agent last year to inquire about adding a rider to my homeowner's policy to cover my collection, but he informed me that as long as my collection wasn't a part of a business, I was covered by my existing policy. 

[Cigarsandmalts]

5 minutes ago, xtcat9k said:

I emailed my insurance agent last year to inquire about adding a rider to my homeowner's policy to cover my collection, but he informed me that as long as my collection wasn't a part of a business, I was covered by my existing policy. 

Good to know. I wonder if there is a limit on the value - I imagine they would cap it at some point.

[El Hoze]

Every insurer and policy is a bit different. I believe in most cases, it would be covered (always good to check). At a certain level, a rider is necessary. I've had both. This might apply more to wine collections unless you're buying a ton of high end cigars. At some level you'll be better off getting stand-alone insurance. I have done that for my wine and shotguns. The conversation with traditional insurance companies becomes more difficult in some of these situations. 

[GrouchoMarx]

Then there's the story of the guy who smoked all his cigars, and then made a claim.

The insurance company was forced to pay the claim by the courts.

Then, he was charged with arson, as he had "deliberately set fire to them".

(I think its an urban myth actually)

[xtcat9k]

2 minutes ago, Cigarsandmalts said:

Good to know. I wonder if there is a limit on the value - I imagine they would cap it at some point.

I got the impression that the limit of my total policy was the limit, as I gave him a large number. No limit specifically on just cigars. 

[xtcat9k]

2 minutes ago, El Hoze said:

 I have done that for my wine and shotguns. 

Crazy how much some shotguns are worth, considering how simple of a device it is. I know its all in the craftsmanship, but damn. 

[El Hoze]

I think that's correct, the total amount is the total amount. Where the insurance companies sometimes want a rider is when there's a disproportionate value in a certain asset, I believe. Or they want to break it out and underwrite it separately. 

True on shotguns. The amount of money one can spend on a pin attached to a tube, grape juice, and rolled up tobacco leaves makes you wonder if we've lost our minds. The good news I suppose is all of my guns will hold their value until Monday. As for many bottles of wine and cigars I own, this weekend may be their last. I think of it more as inventory vs a collection.  

[DWC]

12 minutes ago, El Hoze said:

      .... I think of it more as inventory vs a collection.  

   Amen brother.      Amen

[saintsmokealot]

Depending on your carrier and size of your collection you might want to check your personal property limits.

[stunod]

There is a little hitch if your in the US. Cuban cigars are still illegal. I know you can bring $100 worth back from Cuba... crap.

Good luck asking an insurance company to cover replacement value. How can you replace .

Just my opinion.

 

[Ken Gargett]

8 hours ago, GrouchoMarx said:

Then there's the story of the guy who smoked all his cigars, and then made a claim.

The insurance company was forced to pay the claim by the courts.

Then, he was charged with arson, as he had "deliberately set fire to them".

(I think its an urban myth actually)

it is. .

[gweilgi]

7 hours ago, El Hoze said:

I think that's correct, the total amount is the total amount. Where the insurance companies sometimes want a rider is when there's a disproportionate value in a certain asset, I believe. Or they want to break it out and underwrite it separately. 

True on shotguns. The amount of money one can spend on a pin attached to a tube, grape juice, and rolled up tobacco leaves makes you wonder if we've lost our minds. The good news I suppose is all of my guns will hold their value until Monday. As for many bottles of wine and cigars I own, this weekend may be their last. I think of it more as inventory vs a collection.  

Inventory it may be from a personal perspective, but in the case of catastrophic loss (e.g. house fire) it can still be damned expensive.  My insurance broker once advised me that people tend to vastly underestimate the replacement value of their collections, whether it is books, CDs, cigars or anything else; asking around my circle of friends and family confirmed this.  We tend to note and remember big-ticket items like that new 65-inch TV or our high-level audiophile setup, but smaller items acquired over long periods do add up.  Cigars fall into that category as well, IMO -- at least I was seriously surprised by the money I have sunk into my cigars when I had to list and value them for the insurance when moving house.  

Generally speaking, it has been my experience that adding an itemised list of specific collections to an insurance policy will save a LOT of hassle when making a claim because the insurer will have been informed beforehand and by accepting the list will also have accepted the value.  It makes it much harder for them to quibble...

[gmoney]

1 hour ago, stunod said:

There is a little hitch if your in the US. Cuban cigars are still illegal. I know you can bring $100 worth back from Cuba... crap.

Good luck asking an insurance company to cover replacement value. How can you replace .

Just my opinion.

 

I believe the limits have been lifted.  

[El Hoze]

1 hour ago, gweilgi said:

Inventory it may be from a personal perspective, but in the case of catastrophic loss (e.g. house fire) it can still be damned expensive.  My insurance broker once advised me that people tend to vastly underestimate the replacement value of their collections, whether it is books, CDs, cigars or anything else; asking around my circle of friends and family confirmed this.  We tend to note and remember big-ticket items like that new 65-inch TV or our high-level audiophile setup, but smaller items acquired over long periods do add up.  Cigars fall into that category as well, IMO -- at least I was seriously surprised by the money I have sunk into my cigars when I had to list and value them for the insurance when moving house.  

Generally speaking, it has been my experience that adding an itemised list of specific collections to an insurance policy will save a LOT of hassle when making a claim because the insurer will have been informed beforehand and by accepting the list will also have accepted the value.  It makes it much harder for them to quibble...

Ah, well I should have been clear. Inventory or collection, however we define it in our heads, I still insure everything. I probably underestimate the replacement cost of many things, but my cigars I don't. They'd be impossible to replace and that's even before taking into account the monetary value. Point well taken, with insuring anything always read the fine print! 

[Corylax18]

My insurance agent is a family friend so I discussed the value of my gun collection (not just shotguns) and cigars with her when I was setting up my policy, no special rider, but I did end up slightly increasing the value of my plan as the costs add up faster than you realize. 

[JohnS]

My brother-in-law is an insurance broker and we've had this discussion. My Building and Home Contents coverage is more than the average person's and it will adequately cover any major loss. It's always best to check your insurance policy each year at renewal. As @gweilgi mentioned, it's common to under-insure.

[Cigarsandmalts]

Thanks all for the insight. Seems I need to ring my insurance agent to get my cigarsandmalts insured properly

[mrwhitt]

From my father, and agent, if the item doesn't leave the house the item would be covered. Since it's unlikely you take your entire collection out of the house at one time it would be covered under the traditional policy.

Personally I keep a list of my cigars. I also have videos of my house stored in the event of catastrophic loss. If needed, I can then review the videos to itemize the loss. This helps track all replacement costs, not just the big ticket items.

[Bohn007]

1 hour ago, mrwhitt said:

Personally I keep a list of my cigars. I also have videos of my house stored in the event of catastrophic loss. If needed, I can then review the videos to itemize the loss. This helps track all replacement costs, not just the big ticket items.

As someone who started in life as an insurance agent, doing a video inventory is a cheap way to protect yourself that is often overlooked. 

[scap99]

7 hours ago, Bohn007 said:

As someone who started in life as an insurance agent, doing a video inventory is a cheap way to protect yourself that is often overlooked. 

How did you get out?

My wife got in at 19, and hasn't been able to break away for 20+ years.  I hear it is easier to quit the mafia... Lol

[Bohn007]

On 2/18/2017 at 7:13 AM, scap99 said:

How did you get out?

My wife got in at 19, and hasn't been able to break away for 20+ years.  I hear it is easier to quit the mafia... Lol

I was only 23 at the time so changing my job had as much of a challenge as changing girlfriends.