Posted in Fine Art & Collectibles Insurance

Rare Toy Insurance: A Guide for Collectors and Brokers

August 5, 2024 / Distinguished

One of the largest purchasers of toys today is adults. This growing segment of toy buyers doesn’t just have the passion, they also have the budget to fill their collections with rare, antique, and highly sought-after toys that cross fandoms and toy types. 

However, if your clients have been lucky enough to come across a rare Illustrator Pikachu Card (worth over $550,000) or a vintage Boba Fett toy (worth over $500,000), they’re going to need an insurance policy that properly covers them. This means a specialized collectibles policy.

This article will introduce you to Distinguished’s Private Collections policy. We’ll review what it covers, what it costs, and the benefits you and your clients can enjoy when you partner with Distinguished.

What Kinds of Toys Can Be Insured?

Any kind of toy can be insured as long as it has an established value and can be sold on a secondary market. 

This can include:

Antique toys
Rare collectibles
Trading cards
And more

So whether your client collects classic GI Joe action figures or Victorian rocking horses, they should be able to get a collectibles insurance policy that will give them the protection they’re looking for.  

How Do You Insure a Toy Collection?

There are two primary ways to get insurance for a personal rare toy collection. The first way is to include the toys on your client’s homeowner’s insurance. 

However, insuring collectibles through a homeowner’s policy comes with drawbacks, especially for those with larger collections. These drawbacks include:

No protections outside the home: If a collectible goes missing or is damaged while it is outside of your client’s home, like on the way to auction, then it may not be covered. 
Not fully insured: Many homeowner policies only insure valuables (like rare toys) up to a small limit. If your client owns a toy that is worth tens of thousands of dollars, they might not be reimbursed for the full cost should it get damaged. 
Affects homeowner premiums: If a claim needs to be made for one of your clients’ toys, that claim could lead to increased premiums on their homeowner’s insurance, a financial burden that may not be worth the claim.

For all of these reasons, a specialized collectibles policy is the smarter choice for more serious collectors. 

What Specific Risks Do Toys Face?

The top risks to toys, much like other collectibles, are theft, disappearance in transit, and accidental damage. However, beyond these primary risks, certain toys can have other risks as well.

The nature of these risks will depend greatly on the kind of toy being insured. For instance, if your client has a collection of rare stuffed toys, like Beanie Babies, then humidity should be their top concern.

On the other hand, if they collect action figures, bleaching from UV light is more of a threat. 

If you have any questions about the specific risks inherent in a certain type of toy, feel free to reach out. We can do our best to explain these risk factors to you or put you in contact with an expert in the field who can.  

What Does Collectibles Insurance Cover?

Insurance coverages will differ from company to company, but at Distinguished, we offer the following coverages for our Private Collections policies: 

Worldwide transit coverage: Insures covered items anywhere in the world, so your client’s toys are safe should they go missing in transit or get damaged while on display.
Theft: Provides financial protection should a toy get stolen on the road or from a covered location.
Accidental damage: Covers the cost of replacement or repair should a covered toy be accidentally damaged.
Natural disasters: Protects toys should they be damaged or lost due to natural disasters like a flood or fire. 
Automatic coverage for new items: Offers automatic coverage for new items added to your client’s collection up to 25% of the policy limit.

It’s also important to note that a collectibles insurance policy from Distinguished does not just cover your client’s rare and antique toys. It can also insure all of your client’s rare art and collectibles on one policy. This includes:

This is not an exhaustive list. If you want to confirm whether one of your client’s items is insurable, feel free to reach out to one of our insurance experts. 

Why You Should Partner With Distinguished for Toy Collector Clients

Beyond our policies and coverages, there are plenty of reasons to partner with Distinguished for all of your collector clients. 

When you partner with us, you get access to:

Industry connections: We know this business inside and out, so if your client needs access to specialized repairs or knowledge, we can help make that happen.
Flexible policies: Our team can help craft a policy that meets your client’s coverage, risk, and budgetary needs. 
Expertise: We understand the ins and outs of collectibles insurance, including how lending or consigning a collection can affect your client’s insurance needs.
Smart policies: From our transit coverage to our automatic coverage for new items, your clients get an easy and headache-free way to keep their items covered.
Convenient valuations: We can work with you and your client to reach an agreed valuation of your client’s collection, and we will even allow you to extend market value up to 150% of that agreed amount (with additional underwriting review).  
Superior service: Our team is ready to handle anything from applications to policy questions so you and your client can get the information you need when you need it.
Handles all kinds of clients: We can help you insure personal collections as well as collections owned by corporations, museums, galleries, and exhibitions.

How Much Does Toy Insurance Cost?

The cost of a collectibles insurance policy to insure your client’s toys will vary depending on a number of important factors. However, the two most important things our underwriters will look at are:

The nature of the collection: Includes the number of items, value, and risks associated with your clients’ collection.
Storage of the collection: Includes safety precautions taken, the geographical location of the collection, and how often it is moved to or from locations.

Based on these two major factors, our underwriters will be able to create a custom quote that fits your client’s needs and situation. Learn more about how to get a quote for your client in as little as 48 hours below. 

Register Today With Distinguished

If you’re interested in getting a bindable quote for your client today, the first step is to register with us — this should only take 5 minutes.

Once this is done, log in to our system and fill out an application form. Make sure to include all the necessary details and documents regarding your client’s collection, including a schedule of all covered items, appraisals, and invoices. 

Don’t forget that Distinguished can also handle all kinds of collectible clients — not just private collectors. 

This can include:

If you’ve got any other questions, feel free to message our support team or explore our Private Collection Insurance program page for more details. 

Rare Toy Collection FAQs

Where do we offer this program?

Our Private Collection Insurance program is currently available in every state except for California and Massachusetts, which we hope to expand into soon.

Will items be covered when they are moved internationally? 

Yes, our transit coverage covers items on the move regardless of where they are in the world (unless otherwise stated in your policy).

How can I find an appraiser for rare toys?

You can check out AAA, ASA, and ISA databases to find a local appraiser. You can also approach any local rare toy sellers — just make sure they have a USPAP certification. 

About Distinguished Programs

Distinguished Programs is a leading national insurance Program Manager providing specialized insurance programs to brokers and agents with specific expertise in Fine Art and Collectibles, Environmental and Construction Professional, Executive Lines, Inland Marine, Real Estate, Community Associations, Surety, Hotels, and Restaurants. Property and Liability products are distributed through a national network of agents and brokers. Serving the same core markets and partnering with the most stable and reputable carriers, Distinguished’s high-limit Umbrella programs remain the clear choice in its area of specialty for superior coverage, competitive pricing, and attentive service. Through thoughtful innovation, stemming back to 1995, Distinguished Programs fosters growth and opportunities for its brokers, carriers, and employees.

View a full list of our programs and submit business with Distinguished.

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