Do you have a hobby you love? Something that costs you time and money but is worth every minute and penny? January is National Hobby Month, which makes this the time to celebrate whatever it is you love to do. Depending on your hobby, though, it could have an impact on your insurance rates, so before you celebrate, it’s time to get serious.
Expensive hobbies that involve collectibles like art, cars, antiques, instruments, and even guns need more coverage than you realize. Extreme hobbies that get your heart racing and blood pumping might be a lot of fun, but they can make finding life insurance a nightmare.
It’s important to have the right amount insurance for every part of your life, including your hobbies.
Your Collectibles and Home Insurance
How much is your hobby valued at? Do you collect valuable works of art, antique guns, or old cars? Not every collection rises in value, but for those that do, don’t rely on your homeowner’s insurance to fully cover you. Depending on the total value, your standard policy may only be able to pay a fraction if your collection is completely destroyed.
If you have a small collection, a small rider may be all you need to cover against potential loss. For higher priced items, it’s time to consider blanket or scheduled coverage specifically for your collection. Blanket coverage pays a lump sum and does not require an itemized list. Scheduled coverage requires that you itemize and appraise each valuable you want to insure.
For homeowners with gun collections, you need to take extra precautions. Most gun owners are extremely responsible but accidents happen, and so does theft. Your standard North Carolina homeowners insurance policy will cover your guns up to a specific amount, but you can also purchase an additional rider if the value of your collection exceeds the limit. If you worry that your liability limits aren’t enough, you can purchase additional coverage.
Extreme Hobbies and Life Insurance
When you think about hobbies like skydiving, mountain climbing, or scuba diving, what do you think about? The rush when you do something most people can’t or won’t? The thrill of pushing yourself to your absolute limits? You probably aren’t thinking about life insurance, but you should be.
While life insurance is a good idea for most people, it’s especially important when there’s a real chance your family might lose you. The problem, though, is that extreme hobbies can make life insurance more expensive and more difficult to get. Why? By virtue of your activity, there is a very real chance that you’ll die of unnatural causes.
Expect your premiums to be higher and based on your specific extreme hobby. There are no standard rates so each insurer may charge a different amount for the same hobby. But don’t keep this information from your agent, either. If you die within two years of the purchase of the policy and the insurance company discovers your hobby, they could deny your family the benefits they’re due.
Here at Charlotte Insurance, we want you to enjoy your hobbies to the fullest extent, but we also want you to be safe. If you don’t have life insurance and you’re jumping out of things, diving deep, or doing anything else extreme, give us a call. For the collectors and hobbyists with a lifelong passion, we can help you protect what you’ve worked so hard to collect and build over the years. Contact us today!