Firearms Insurance

[10X 3,296]

I've been insuring my firearms through the NRA Lockton Affinity program, which, for a fee, allows you to add any amount of coverage on top of the modest amount that NRA membership provides without additional charge.   At renewal time this year, I got to thinking it was getting kind of expensive...

Some time ago, someone here recommended Collectibles Insurance Services (Collectibles Insurance) as a better option.   So I checked them out.  They sell a lot of firearms insurance, though you can also fold in coverage for coins, art, stamps, edged weapons...anything likely to be excluded from your homeowners policy.   The website was problematic for trying so submit an application online using either Chrome or Safari, but the humans on the phone were helpful, and I had an application in, approved, and paid for in just over 24 hours.

It cost just 55% of what I had been paying Lockton, and for that premium I even bumped up my coverage by a few thousand--because unlike Lockton, Collectibles Insurance covers ammo, and accessories like spotting scopes, chronographs, reloading equipment.   It's a huge improvement over my old coverage, and I'm saving a lot.

OK, you don't really know how good an insurance company is until you file a claim, but so far I'm impressed!

[45Doll 5,877]

Me too.

[SJG 253]

But why aren't they on the list of Insurance Companies authorized to do business in N.J? https://www.state.nj.us/dobi/data/inscomp.htm

[10X 3,296]

18 minutes ago, SJG said:

But why aren't they on the list of Insurance Companies authorized to do business in N.J? https://www.state.nj.us/dobi/data/inscomp.htm

Good question!   Quoting from the policy, Collectibles Insurance "is written by a surplus lines insurer, not subject to the filing or approval requirements of the New jersey Department of Banking and Insurance."  "The insurer has been approved by the Department as an eligible surplus lines insurer."  "Property insurance covering owner-occupied dwellings of less than four dwelling units are covered by the New Jersey Surplus Lines Guaranty Fund.  The insurance is issued pursuant to the New jersey Surplus Lines Law."

I'd never heard the term surplus lines insurance prior to getting this policy, but it's defined here:  surplus lines insurance.   

[SJG 253]

You should check to make sure that they are currently approved to transact business in N.J. as a surplus lines insurer. If so, find out if there is a separate list other than the one on the referenced web page. Also, it is unclear to me if non dwelling related property coverage is even covered by the New Jersey Surplus Lines Guaranty Fund. That means if the carrier goes under there may not be coverage under the Guaranty Fund (who's limits are capped anyway) for collectibles. I am familiar with the term surplus lines insurance. The problem is if they take on what is known as "high risk" they either need to have sufficient capitalization or policies with reinsurers that they have procured to cover loss. They usually sell coverage for lower rates hoping to attract large numbers of insureds---that's great provided they have the resources to pay the claims!

[oldguysrule649 397]

OP,

I have been meaning to look into firearms insurance. Currently dont have any other than what NRA provides. To obtain the coverage, what info do they require? E.g. do you have to provide a detailed list or.just specify the total amount of coverage you wamt.

[10X 3,296]

9 minutes ago, oldguysrule649 said:

OP,

I have been meaning to look into firearms insurance. Currently dont have any other than what NRA provides. To obtain the coverage, what info do they require? E.g. do you have to provide a detailed list or.just specify the total amount of coverage you wamt.

NRA-Lockton insurance, which I used to have (I believe it's also a surplus lines insurer, as it isn't listed in the link SGJ provided) requires itemizing any single gun over $2500 in value.  I don't recall if they want an appraisal at that level, or only for more expensive guns).   I don't recall if the limits are the same for Collectibles Insurance--I think they are, but I didn't have anything that triggered that requirement, so I know it's not a lower limit.

I was simply asked if I could prove ownership in the event of a claim.  I responded that I have a complete list, with descriptions and serial numbers.   That was good enough--I wasn't asked to provide the list.  I only specified the coverage amount I wanted.

[10X 3,296]

23 minutes ago, SJG said:

You should check to make sure that they are currently approved to transact business in N.J. as a surplus lines insurer. If so, find out if there is a separate list other than the one on the referenced web page. Also, it is unclear to me if non dwelling related property coverage is even covered by the New Jersey Surplus Lines Guaranty Fund. That means if the carrier goes under there may not be coverage under the Guaranty Fund (who's limits are capped anyway) for collectibles. I am familiar with the term surplus lines insurance. The problem is if they take on what is known as "high risk" they either need to have sufficient capitalization or policies with reinsurers that they have procured to cover loss. They usually sell coverage for lower rates hoping to attract large numbers of insureds---that's great provided they have the resources to pay the claims!

I admit, I took on faith their written claim in the policy that they are approved to do business in NJ, and that the Guaranty Fund covers me since I'm in a covered residence.  I've not yet taken time to independently verify those claims or see what the Guarantee cap might be.