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Most young affluent collectors do not insure luxury collections
A Chubb survey of 1,000 collectors found 78% buy based on future value, but fewer than half have insured their collections, driven in part by beliefs that homeowners policies already cover valuables.
A new Chubb study says many young, affluent collectors are buying luxury items with their future value in mind, but most are leaving those collections uninsured. According to the study, 78% of young, affluent American collectors say an item's future value is a top factor in purchasing decisions, yet fewer than half have insured their collections.
Chubb linked the shortfall largely to misconceptions among uninsured collectors, who believe their homeowners policies already provide adequate coverage for valuables. The research, titled "The New Era of Luxury Collecting & Investment," surveyed 1,000 affluent Americans in their early 20s to mid-40s with annual incomes from $250,000 to more than $1 million.
The report also describes collecting as a longer-term strategy rather than a temporary hobby for many respondents. Among art and antiques collectors, 59% have collected for five years or more and 21% for a decade or more, while sports memorabilia collectors reported 57% collecting for five-plus years and 10% collecting since childhood.
Chubb said collectors' buying habits are increasingly digital, and it connects that shift to insurance interest. The study found 71% prefer completing acquisitions digitally, 70% prefer verifying condition or provenance online, and 61% prefer digital authentication and grading, while 94% expressed interest in purchasing valuables insurance.