Doesn’t Homeowner’s Insurance Cover Them?
Many people assume guns are covered through the personal property clause on their homeowner’s or renter’s policy. You may indeed have some coverage there, but specialty items like guns, jewelry, and collectibles are severely limited. For example, my homeowner’s policy covers only up to $2,500 for loss by theft of firearms. I don’t know about you, but that’s not nearly enough to cover my entire collection.
Depending on the carrier, you can add a rider to your homeowner’s policy, but the coverage remains limited and comes with many exclusions. It is best to purchase a separate policy specifically intended to cover firearms.
Specialty Policies
Specialty policies can usually be found through the company that already insures your home and auto. Firearm-specific carriers also exist, but it’s worth checking with your current agent first. There might even be a multi-policy discount for you.
My firearms are insured through my primary carrier via their Personal Articles Policy. This type of policy is offered through most major carriers and covers theft and accidental direct physical damage, which encompasses several perils. Policies like this also account for inflation and increased replacement costs over time.
What to Look for In a Policy
When seeking an insurance policy that won’t disappoint you should you need to file a claim, you need to know some important terms. Specialty personal property policies come in two forms: scheduled coverage and unscheduled coverage.
Scheduled coverage is preferable for a firearms policy because it provides specific coverage amounts per firearm. For example, if you own a Glock 19, Glock 26, and CZ P10C, they will all be listed separately on a schedule with their respective values. Scheduled coverage policies can have higher premiums, but they usually have fewer claim restrictions and higher coverage limits.
Unscheduled coverage policies do not itemize personal property. Instead, there is a stated overall limit to the coverage. The premiums can be lower because the policies come with more restrictions. This type of policy tends not to keep up with value over time, so if you make a claim ten years later, you may not have a high enough limit to replace all your items.
Another set of essential terms to know are actual cash value (ACV) versus replacement cost value (RCV). ACV is the amount of money needed to replace your item minus depreciation at the time of the claim. Just like your auto, the insurance company will figure a depreciation amount and deduct it from the value.
ACV is the amount of money needed to replace your item minus depreciation at the time of the claim. Instead, you want a policy that pays RCV, which is the amount of money needed to replace your item at the time of the loss.
Instead, you want a policy that pays RCV, which is the amount of money needed to replace your item at the time of the loss. Certain items can cost more to replace or repair in the future, and RCV policies account for that. Also, with RCV, if your item cannot be replaced because it isn’t made anymore, you will receive the cost of a similar or like item. Depending on the firearm, this may or may not be a good thing, so let’s talk about appraisals.
Appraisals
Modern firearms that are easily replaced generally do not require an appraisal for coverage. Instead, your agent will ask you to provide an invoice showing what you paid, indicating the replacement cost they will use to assign a premium. Don’t forget to include accessories like optics and aftermarket parts like different barrels or triggers.
For firearms that cannot be easily replaced, including older guns, collector's items, and custom pieces, you’ll want to obtain an appraisal. Depending on the insurance company you’re working with, they will either allow you to give a verbally stated value, or they will require a written appraisal.
Some local gun shops offer appraisal services, which make it easy to take your firearms in to be valued. If yours doesn’t, you can easily find an online outfit like Blue Book of Gun Values. BBGV, for example, offers two appraisal methods. Self-service costs only a small fee and allows you to search their massive database and obtain a stated value. If you need a written appraisal, they also offer that for a slightly higher cost.
As your firearms age and become discontinued, it may be worth getting appraisals to ensure you’re taken care of in the event of a theft or fire. Some companies will require updated appraisals over time, and others will leave that up to you. For collector’s items especially, you should keep an eye on how the value changes over time and adjust your policy accordingly.
Appraisals can be beneficial for other reasons as well. Many times, gun owners who pass will leave valuable collections. If your family is not as into guns as you, they likely won’t know what your guns are worth. This is important if they want to sell the firearms or keep and insure them. Either way, an appraisal may help lead them in the right direction.
Conclusion
I’ll bet if you’re reading this, you own more firearms than the average American. If you’ve considered insurance, now you know it’s not as daunting a task as you imagined. The time and costs associated can give you peace of mind that your collection is protected in more ways than one.
