The Evolving Market for Video Game Collection Insurance
Video games are a fast-growing segment of the $512 billion global collectibles industry. What was once a personal passion is now a globally recognized asset class that attracts serious investment and demands tailored insurance coverage.
Market size and growth:
Video game collectibles are valued at an estimated $142 billion, highlighting a rise in passion-driven assets as insurable property. The broader market is growing at 5.5% annually, with the toy figurines and consumer collectibles segment — where many gaming items fall — growing even faster at a 24.6% compound annual growth rate (CAGR).
Legitimized by investors:
Major auction houses now host dedicated gaming sales. Venture firms and analysts track game-related assets the way they do other large investments like musical instruments, coins, or rare books. This kind of attention signals lasting demand and drives collectors to seek protection that standard homeowners insurance can’t deliver.
Why Values Are Rising
A few key factors continue to drive demand and push prices higher:
- Nostalgia from collectors who grew up with early consoles and titles
- Scarcity, especially for limited runs, sealed cartridges, and mint-condition hardware
- Cultural value, as games gain recognition as digital art and historical media
- Influencer visibility, which boosts mainstream awareness
- Portfolio diversification, with collectors seeing games as a serious asset class
Many video game collectors prioritize authenticity and financial protection for their collections, particularly when the value exceeds the limits of a standard homeowners policy.
Why Video Game Collection Insurance Matters
From lost shipments to accidental damage, these hypothetical situations show how specialized collectibles insurance could safeguard valuable collections from a wide range of costly risks.
Convention Transport Damage
A rare Nintendo PlayStation prototype is shipped to a gaming convention. During transit, the container is dropped, damaging the internal components. Standard carrier liability may limit reimbursement to a few hundred dollars. A collectibles policy with full transit coverage could reimburse the item’s appraised value.
Water Damage at Home
A storm floods a client’s home, where a collection of sealed NES cartridges is stored. A homeowners policy might offer only $200 per item, leaving tens of thousands of dollars uninsured. With specialized coverage, each game could be valued and covered individually, based on market price.
Theft During an Open House
During a home tour, someone steals a display case filled with limited-edition consoles and rare arcade boards. The loss totals $75,000, but the homeowners policy caps collectibles coverage at $5,000. With a dedicated video game collection policy, the owner could recover the full replacement value without triggering their homeowners insurance.
How To Insure Video Game Collections
With video games gaining recognition as valuable assets, more and more collectors will need to secure appropriate insurance coverage for these items. However, providing insurance plans for video games requires a nuanced understanding of their unique characteristics, including their history, rarity, market value, and condition.
This guidance is something that Distinguished is well-equipped to provide, as we can offer expertise and professional connections inside these emerging insurance niches. This ensures that collectors receive specialized coverage that accurately reflects the value and significance of their collections.
Getting a quote is easy. Simply register with us and then submit a completed application form, loss history, and a detailed inventory of items the owner wishes to insure through our online broker portal. If you have any questions about this process, please feel free to reach out to one of our insurance experts.
Is Video Game Collection Insurance Necessary?
There are several reasons why seeking out collectibles insurance services is a necessary investment for video game collectors.
- Value appreciation: Rare or limited edition video games have the potential to appreciate significantly in value over time, making them valuable assets worthy of protection.
- Risk of loss or damage: Video game collections are susceptible to various risks, including theft, fire, breakage, natural disasters, or accidents. Without adequate insurance coverage, collectors risk losing their valuable investments.
- Limited coverage: Standard homeowners’ insurance or renters’ insurance policies often provide limited coverage for collectibles, including video games, leaving collectors vulnerable to inadequate protection.
- Separate from homeowner’s policy: Should your client need to file a claim, it won’t affect their homeowners insurance premiums.
- Specialized coverage: Collectibles insurance policies offer specialized coverage tailored to the unique risks and value of your collection, ensuring comprehensive protection against potential losses.
- Protection for investment: A collectibles insurance policy offers financial protection for collectors who have invested significantly in building their collection. These policies will cover the agreed or current market value for the full value of lost or damaged items.
Unlike some other collectibles, video games are often difficult to repair as there are few specialized repair services for these items, and older systems may require outdated technology to fix. Therefore, it’s imperative for collectors to ensure that they can replace any lost or damaged items with the same video game in the same condition. In cases where the item is irreplaceable, the insurance coverage should offer adequate compensation.
By obtaining a collectibles insurance policy, video game collectors can mitigate these risks, protect their investments, and enjoy their collections with confidence and peace of mind.
What Is Covered With Collectibles Insurance?
Collectibles insurance typically provides coverage for a range of risks and perils that may affect video game collections.
Policies often include protection against:
- Accidental damage: Covers instances where damage occurs to the covered items through mishandling or inadvertent accidents.
- Damage incurred during transit: Offers protection to items while being transported to and from covered locations.
- Disappearance in transit: Protects collectors in cases where items go missing during shipping or transportation.
- Theft: Offers coverage in instances where the covered items are stolen from a covered location.
- Natural disasters: Covers damage caused by incidents like floods or fires (depending on location availability).
Partnering with the right insurance provider, such as Distinguished, is crucial for video game collectors seeking comprehensive coverage for their collections. A knowledgeable insurance provider understands the intricacies involved in insuring video game collections, including the challenges associated with repairing or replacing damaged items.
Why You Should Partner With Distinguished for Video Game Collector Clients
Partnering with Distinguished for video game collector clients offers numerous advantages that set us apart in the insurance market. These benefits include:
- Flexible deductibles and payment options: We understand that every collector’s needs are unique. That’s why Distinguished offers flexible deductible options and payment plans tailored to suit individual preferences and budgets.
- Newly acquired items are automatically covered: With Distinguished, newly acquired video game items are automatically covered up to 25% of the policy limit. This feature provides immediate protection for recently acquired additions to the collection, offering further peace of mind to collectors.
- Transit coverage: Our policies include transit coverage, ensuring that video game collections are protected while being transported to and from various locations. This coverage extends to safeguarding items during shipping, ensuring comprehensive protection against loss or damage.
- Doesn’t impact homeowner’s policy: Opting for collectibles insurance through Distinguished ensures that the coverage for video game collections remains separate from home insurance. This means that any claims made under the collectibles insurance policy shouldn’t impact the homeowner’s insurance premiums or coverage.
- Flexible valuation options: Distinguished offers flexible valuation options for video game collections, in some cases allowing collectors to value their collections at the higher of agreed or market value. This ensures that collectors receive adequate compensation in the event of a covered loss, reflecting the true value of their collections.
- Expertise in the field: With our expertise in the field of collectibles insurance, brokers can trust Distinguished to provide knowledgeable guidance and support. Our team understands the unique challenges and considerations involved in insuring video game collections, ensuring that brokers and their clients receive specialized assistance tailored to their needs.
- Blanket or scheduled policies: Distinguished offers both blanket and scheduled policies for video game collections. Whether collectors prefer a blanket policy covering the entire collection or a scheduled policy listing individual items (or some combination of the two), Distinguished provides flexible options to accommodate varying preferences and collection sizes.
Together, these benefits give brokers the tools to confidently serve high-value clients and provide the tailored protection serious video game collectors expect.
Register Today With Distinguished
Brokers new to Distinguished can get started by registering and getting their login details.
For collections with limits up to $500,000 (excluding jewelry), submit your client’s business through our online portal, and we can get you a bindable quote right away. For larger collections, you’ll need to submit through a downloadable form to [email protected].
If you have specific questions about our policies, please feel free to reach out to our support team or explore our Private Collection Insurance program page for more details.
Video Game Insurance FAQs
How are newly acquired video games handled?
Newly purchased or won-at-auction items are automatically covered up to 25% of the policy limit for up to 90 days. This gives collectors immediate protection until their next policy update.
Do policies extend to items on loan or exhibition at museums, conventions, or galleries?
Yes. Coverage can include items while on display at exhibitions, conventions, or museums, provided they are listed on the policy and security conditions are met.
Can clients insure related gaming memorabilia, not just cartridges or consoles?
Yes. Policies can extend to gaming-related collectibles such as posters, promotional items, or limited-edition merchandise, as long as they are properly documented.
