Why passion investing is not for the faint-hearted.
Investing more than just your money.
Investing in your passion means investing more than just money. It means years of searching, trading, collecting and curating. All those 'eureka' moments when you come across that 'golden egg' you've been searching for, or those jaw-clenching moments as it slips from your grasp. Childhood memories, family heirlooms and hobbies, passion investments rarely start as investments. And that's why it's so important to recognise more than just their monetary value. We're taking a look at the changing landscape of passion investing, how it started and how it looks now.
From hobbies to heirlooms.
Passion investments don't come with a label. They don't fit into a neat little box. They are rare and unique collections, acquired over time and for many different reasons. Enthusiasts are driven by a desire to turn their passion into something tangible, whether that's handbags or 19th Century European paintings.
And what about the sentimental value? A diamond bracelet passed down from mother to daughter or an antique vase that has been in the family for years. Then there are those who simply strike it lucky. A rare collection of baseball cards stashed in a second-hand chest, or a long lost video game now worth a small fortune.
Protecting your luxury investments.
Rare, high-value articles fall outside the scope and appetite of standard household insurance policies. Designed with the exceptional in mind, High Net Worth (HNW) insurance provides valuable protection in specialist areas such as fine art, jewellery and classic cars.
But the landscape of passion investments is changing, and it's essential to recognise the inherent value of your collections, from traditional investments such as diamonds to contemporary fares such as skateboards and comic books. These items often need to be noted on your insurance policies, even if they’re included within the sum insured.
Professional valuations not only help you understand the market value of your investments but establish the replacement value for your insurance policy and protect your collections from underinsurance. Collectors enjoying Chubb’s valuable articles cover for instance, will receive a payout up to the total value of the specified collection if underinsurance is discovered at the time of loss and the items have been professionally valued within the last 2 years.
What does passion investing look like in 2023?
How to protect your passion.
As with all investments, there comes a risk. No amount of data and statistics can predict market performance. How do you safeguard against market fluctuations? The most important rule of passion investing is to treat your collection as a passion first and an investment second.
But whether it's a mint-condition childhood toy or a vintage single malt whisky it’s vital that your collection is adequately insured. Chubb’s valuable articles cover is available to clients who insure their home contents with Chubb. It is designed to provide the best coverage for your passion investments, from worldwide cover to depreciation in value following an insured event.
For Classic Cars, Chubb’s motor products provide exceptional coverage, including benefits tailored specifically to the needs of the Classic Car owner.
Protect your passions investments with Chubb, expert insurers of your most valued possessions.
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All content in this material is for general information purposes only. It does not constitute personal advice or a recommendation to any individual or business of any product or service. Please refer to the policy documentation issued for full terms and conditions of coverage.