This hobby has a big impact on insurance coverage, regardless whether the collector is a tenant or a homeowner. Homeowner policies typically provide extremely limited coverage for property which can be used as a medium of exchange. This is especially true of collectible coins and currency which has a special value that, typically, far exceeds its face value. One homeowners program, which represents an industry-wide standard for homeowners insurance coverage, contains a severe restriction on the limits available for money. It would be a losing proposition for insurers to offer liberal coverage for coin collections and similar property.
Standard policies recognize the above attributes and are designed to limit their exposure.
In the case of coin collecting, enthusiasts are encouraged to seek special protection for their valuable property. A collector has the option of adding a special endorsement to their basic homeowner protection or buying a separate policy. While arranging for coverage, a coin collector must meet three critical objectives. First, the collector must be able to prove their possession of the property. Second, the collector must find a reliable method to carefully document the current value of their property.