Hobbies are typically considered fun or recreational activities. They help us relax, make new friends, and enjoy personal time doing what we love. However, you may not realize how your hobbies impact your insurance needs. If you are investing in your hobby, including equipment, supplies, or property, it may be time to alter your insurance coverage.
Should you insure your hobby?
There are many hobbies that could require insurance coverage in order to protect your valuables and property. Hobbies often revolve around collectibles, including classic cars, jewelry, antiques, coins, or sports memorabilia. Each of these items comes with a price tag and could be difficult to replace out of pocket in the event of loss. If you collect items, it is important to make sure your existing homeowners or renters insurance policy provides enough coverage to repair or replace your collectibles.
Some hobbyists have to purchase expensive equipment to participate in a specific activity. If you enjoy playing music in your spare time, you may have purchased a guitar, piano, or recording equipment. Sports enthusiasts may invest in sporting equipment like bicycles, sports gear, or training equipment. Other hobbies, including hunting, sculpting, and painting also require participants to invest in equipment and supplies. Your current insurance policy may not include coverage for these items.
Commonly Insured Hobbies
For serious hobbyists who invest significant time and money into their hobby, a loss damages can be devastating. Having to replace expensive items or equipment out of pocket is difficult and can derail your hobby. Your insurance needs will depend on your hobby, existing homeowners policy, and unique circumstances. Commonly insured hobbies include:
- Collecting or restoring classic cars
- Collecting coins, stamps, antiques, art, etc.
- Music, including instruments and equipment
- Model or radio-controlled planes
- Art, including painting and sculpting
- Ham radio operation or repair
- Water sports, including scuba diving, rafting, water skiing, and surfing
- High-risk activities, including cliff diving, climbing, and sky diving
What contributes to your premium?
Your insurance premium will be based on a variety of factors unique to your hobby and circumstances. Your insurance company will determine your premium and rates on an individual basis. Considerations for your insurance premium related to hobbies, include:
• How frequently you participate in your hobby or activity?
• Locations involved in your hobby
• The limits of your hobby, including speed, height, depth, etc.
• Any history of accidents
• Training for your hobby
• Safety gear owned and used for your hobby
• Any partners, associations, or teams related to your hobby
What type of insurance coverage is needed for hobbies?
Hobbyists classified as collectors should focus on coverage that protects the value of the property acquired as part of the hobby. This type of insurance covers the repair or replacement of items in the event of a covered loss. For hobbyists classified as enthusiasts, the focus of insurance coverage revolves around property exposure and liability exposure that comes with the activity.
Your existing homeowners’ or renters’ insurance policy likely has coverage limits that do not include the value of your collectible items. A typical insurance policy covers the value of items in a home, but high-value property like art, antiques, memorabilia, or rare coins require additional protection.
An endorsement, or rider, can be added to your homeowners policy to increase your coverage limits. Expensive property that is part of a hobby or collection can be better protected by this addition. If you need to cover a specific item, you can purchase floater insurance. This type of policy covers the full value of an individual item to protect part of your collection.
Finally, if you have unique or special items that are difficult to classify, specialty coverage may be needed. For example, restoring a classic car can benefit from specialty coverage that includes time and money invested into a project.
Some hobbies are more intense or hands-on than others. For hobbyists that incur risk when participating in their favorite activity, liability insurance may be necessary. If your hobby includes activities or equipment that is potentially hazardous or dangerous to others, liability coverage can protect you. Liability coverage can be essential if you face a lawsuit or claims related to an accident involving your hobby or property damage.
Review your existing insurance policy carefully and note which types of liabilities are included in your coverage. If you give advice to others within your hobby, travel frequently for your hobby, have visitors on your property for your hobby, or sell property for your hobby, you may require additional liability protection.