Bullion is like any other asset in that it can be insured, since it has inherent and clear value. Some insurance companies go even further and offer bullion policies specific to the needs and concerns of precious metals owners and investors. Read on to learn what the precious metals experts from First National Bullion, the silver and gold dealers Scottsdale collectors rely on for outstanding quality and service, have to say about your insurance options with bullion.
Don’t Count on Your Homeowners Policy Alone
A standard homeowners policy may cover physical precious metals you own and have in your home. This is certainly good news, and it’s better than having no protection against theft or damage at all.
However, a standard policy often has a relatively low limit for certain types of bullion. With silver and gold coins, the limit is typically around $200 or so. Unfortunately, this isn’t going to help much if you have silver and gold coins that are worth far more. It’s worth noting you can sometimes customize your policy to include more substantial coverage based on the current documented value of your bullion.
Don’t Assume You’re Protected by Bank Safe Deposit Insurance
Safe deposit boxes aren’t FDIC insured, so you don’t automatically have protection if you store your bullion at your local bank. That being said, there are some private insurance companies that will insure bullion you have stored in a safe deposit box.
Consider Private Depository Services
Only 1 percent of safe deposit boxes in the U.S. are actually covered to some extent by the FDIC. Therefore, you may wish to consider private storage facilities that give you the benefits of bank storage with the added advantage of insurance. In fact, most private depository services offer full insurance on anything stored there. Check ahead of time before you store your bullion to see what kind of coverage is available.
Check with Your Own Insurance Company
See what your insurance company offers for bullion coverage. Some insurance companies have bullion policies, but not all do. In some instances, your insurance company may try to find a way to fit your bullion into the coverage you already have. This is perfectly fine. Just make sure you’re getting coverage that’s in line with the value of your bullion.
Prepare to Insure Your Bullion
Start by having your bullion appraised. This way, you’ll have clear documentation of its value. It’s especially important to do this if you have rare coins or other forms of bullion whose value can be based on more than their precious metal content alone. Also, take photographs of your bullion so your insurance provider has documented proof of its current condition. This could come in handy if you need to file a claim because your bullion has been damaged or stolen. On a related note, don’t forget to properly secure your bullion and store it correctly. Otherwise, your insurance provider may deny your claim if you need to file one in the future.
When they’re looking for the best place to purchase Scottsdale gold and bullion, precious metals collectors should reach out to the trustworthy professionals at First National Bullion. We can answer all your questions and help you find all the information you need on how gold and silver can figure into your investment decisions. Give one of our experienced dealers a call today at (480) 546-5089.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.