Perhaps the most overlooked items that you neglected to insure are hanging right in your closet. You probably look at them every morning and never think “hey, these vintage shoes might need to be insured.”
Designer and couture, also known as custom, or made-to-measure, clothes and shoes are expensive valuables that should be considered for protection under your homeowner’s policy. Think about it, what would you do and how would you feel if something happened to your expensive wear or personal collection and you had zero coverage?
What you will learn
- How are couture collections defined?
- Coverage for your collections
- What about handbags?
- Premiums for high valued clothing
How Are Couture Wardrobes Defined?
AIG defines designer or haute couture items that are crafted by highly skilled hands to meet a person’s specific taste, figure, and stylistic goals, and they can’t be easily fixed or replaced if damaged. These items can be referred to as high valued items that may need coverage if damaged, lost or stolen.
Designer and couture, also known as custom, or made-to-measure, clothes and shoes are expensive valuables that should be considered for protection under your homeowner’s policy.
Coverage for Your Collections
All tangible possessions are subject to being damaged, lost or stolen. Designer or haute couture collectibles face the same exposures – if not more. Expensive leather shoes might be more sensitive to rain than regular leather shoes. A three-figure handbag is a bigger target than a regular one. The higher the price tag, the higher the stakes.
And so, it makes sense to pay a minimal amount for a valuable articles endorsement on your home insurance policy (also known as riders or floaters) to cover your valuables against damage, loss or theft.
Under your homeowner’s policy, your personal property coverage typically comes with limits on the maximum amount that is reimbursed to you after a covered loss, as well as sub-limits for high-value items. An insurance rider, or also considered as a floater or endorsement, is an optional add-on to your insurance policy that extends your coverage. The most common rider is scheduled personal property coverage, which provides protection for items that may not be covered by your standard policy, such as designer or haute couture items.
If you own designer or haute couture items, you may find that they exceed your coverage limits. If you own unscheduled, valuable items, you must consider a revision of your homeowner’s policy to protect your assets and avoid out-of-pocket losses as a result.
Every woman knows that handbags are one of the most important accessories required to complete an outfit. For women with expensive handbags, choosing the right one on any given night isn’t the biggest challenge. Instead, it’s maintenance, protection and maybe even succession. With this in mind, protecting your most valuable handbags should be top priority, especially if you plan on passing it down.
As much as they are valuable, vintage and designer handbags are a common target by thieves and burglars. Not only are they after the contents of what would be in such a bag, but the item’s actual value can be worth thousands of dollars.
Keep in mind that handbags are considered personal property under standard homeowner’s insurance policies. Coverage always depends on the circumstances of how your handbag went missing or damaged. For example, if the bags were stolen or lost in a house fire, you’re covered. However, claims based on misplacing the bag or spilling red wine and damaging it will not be paid out.
Premiums for High Valued Clothing
Did you know that wealth advisors consider high valued wardrobes an asset? As previously discussed, coverage for high-value items depends on many factors. The same goes for your wardrobe.
If your wardrobe is located in a high-risk zone, your premium will be higher. For example, if you live in a flood zone or hurricane-prone area, you will pay an above average premium. Remember that protecting your valuables clothing is just as important as protecting other valuables around the house. So, when you protect against water damage, remember to always elevate your most expensive clothing.
Consult Your Advisor
Your couture collection was created by hours of labor with the skilled hands designed to meet your personal taste, figure, and expression. It’s important to make sure you are treating your collection like the work of art that it actually is. Take the necessary steps by insuring your wardrobe just in case of an emergency situation. If you don’t have proper coverage, it could cost you thousands of dollars, leaving you without your treasures.