We’ve written about collections a number of times in the past – including stamp collections, antiques and watch collections – looking at the need for insurance tailored to the specifics of such collections. And whilst these may be some of the more traditional collectors’ items, there has been recent growth in ownership of shoes and sneakers and people building up valuable collections.
With this in mind, what do you need to consider when it comes to shoe insurance and protecting your valuable items.
What is the potential value of a shoe collection?
Thought to be the world’s largest collection of sneakers, comprising over 6,000 pairs, this collection is thought to be worth over $2million.
Whilst we appreciate that this is likely to be significantly higher than the average value of a shoe collection it gives a good idea of just how much value the right shoe or sneaker can hold. And if you are interested, this article lists the top 10 most expensive sneakers in terms of resale price.
When it comes to more modest shoe collections, research of over 2,000 adults (Spartoo, 2017) found that men own 19 pairs of shoes on average with an average value of £861. Compared to a value of £789 for women. Growth in men’s footwear ownership is linked to trainers. Trainer collection growth is thought to be being driven by special editions and celebrity collaborations.
Risks linked to shoe collections
Shoe collections can offer a range of risks, particularly if you have a rare or special edition shoe, or a shoe which is from a high-profile celebrity collaboration.
Theft – Given the high resale value attached to some shoes, theft is an inevitable risk. Not only from your home. There has also sadly been a rise in the number of news stories highlighting how people are being mugged for high value items including trainers.
Social media – we blogged recently about how posting images of your possession on social media can attract unwanted attention. And this is true of shoes. Posting images of popular shoes or sneakers that you own on social media advertises them to potential thieves.
Value – much of the value linked to trainers and sneakers is created through hype. Some high-profile brands for example produce a limited number of products or trainer ranges to create demand. If you are lucky enough to get your hands on a pair first-hand you will pay a much lower price for the trainer than it is actually worth due to the demand that has been created by limited numbers of the product.
Authenticity – as with any high value, collectible or limited-edition product, when it comes to shoes you have to ensure that you are buying a genuine product when adding to your collection. Many fakes exist in the market and adding one of these to your collection will not add value.
How to decide if you need shoe insurance for your collection?
When it comes to insurance, a contents insurance policy will typically include some cover for clothing and shoes.
A contents insurance policy will typically set an overall limit on the value of contents covered e.g. up to £50,000. As well as limits on the value of individual items which can be claimed for, also known as a single item limit e.g. £1,500. This effectively means that whilst you can make a total claim of up to £50,000 for contents in the event of a flood, theft of fire event, you cannot claim for a single item worth more than £1,500 within this total amount.
And this is where you may need to take care to ensure that your shoe collection is covered and that you are not underinsured. If for example, you have a pair of shoes or trainers worth £3,000 they would not be covered by the insurance example above as the single item limit is only £1,500.
When taking out insurance it is therefore vital that you take a look through your shoe collection, produce an itemised list and have an up-to-date value of the pairs of shoes which make up your collection.
If you do have items in your shoe collection which exceed the single item limits on standard home insurance policies, you may want to consider taking out specialist insurance or a high-net-worth insurance policy which will typically have higher limits and make allowances for high value items.
What to keep in mind when it comes to shoe insurance?
Check policy limitations
Does the policy include any limitations for events which clothing, and shoes are protected against? Are they covered outside of the home, are they covered for damage caused by moths?
New for old policies
Clothing and shoes will typically be covered under a policy which takes into account wear and tear and provides the current value of the item rather than what it was worth new. This is known as indemnity insurance.
Some policies provide new for old cover whereby damaged items are replaced with a like for like product. However, clothing and shoes are often excluded from new for old policies so this may be another reason to look at specialist insurance for your shoe collection.
Be aware of the exact cover provided
It is important you are aware of the cover provided by a policy, that cover has been discussed if you have a high value item or collection and the policy provides sufficient cover to enable to return you to the same financial position you were in before a loss occurred.
Collections can be insured in a number of different ways including the below.
- An agreed value basis – where the insurer & insured agree in advance of a claim on an amount that will be paid out by the insurer in the event of a total loss
- Market value – the insurer provides market value for the insured property rather than cash value or replacement value
- First loss basis – Defined by the Chartered Institute of Loss Adjusters (CILA) as ‘a policy that provides only partial insurance cover to a pre-agreed value or limit in the event of a claim. The policyholder agrees to accept an insured amount for less than the total value of property at risk.’
If you have a shoe collection or any other collection of value and are unsure of the best cover for you or whether your current insurance provides sufficient cover then do get in touch with us at Anthony Jones. Our team of high-net-worth insurance experts can work with your to understand the risks your collection may face, how to get an accurate valuation of your collection and the level of insurance required to adequately protect your valued items. Contact us on 0208 8290 9086 or email us at firstname.lastname@example.org