Why you should get a luxury bag insurance policy
It is no news that certain luxury handbags have rightfully become investment pieces. Regardless of your intentions, whether you plan to resell your Hermès Croc Birkin in the future or keep it in your permanent collection, it only makes sense to insure your valuable investment.
Surprisingly, while everything about the shopping aspect is constantly shown to us, from the prices of the most chased-after valuable bags, flagship store policies, trusted resellers, and price fluctuations, the after-shopping experience seems much less covered. It is not often you find your favorite fashion influencer reminding you to insure your beloved Kelly, and your social media feed doesn't suggest the promoted posts about the best insurance companies in the luxury goods sector.
Nevertheless, the owners of highly valuable bags are often concerned about the safety of their luxury purchases. In cities most associated with high fashion, such as Paris and London, the crime scene seems to keep up with the fashion scene. Burglars and robbers get more educated by season. It is now mindlessly naive to assume that your luxury handbag would go unnoticed in crowded public places. Walking with a luxury bag like Chanel, Hermès, Dior, or Bottega Veneta, not only is your bag instantly spotted by fellow fashion lovers, but it also risks getting on the radar of highly educated criminals. Today, experienced lawbreakers can easily name the brand and model of a luxury handbag and even tell a fake from the original.
Arguably, a particular lifestyle prevents you from being exposed to unwilling contact with crowds and keeps your daily routine somewhat safe and protected by such comforting things as personal car drivers, private social club scenes, VIP areas, and exclusive appointments. However, living in a big city often pushes you out of that comfort zone. The city traffic can easily make the metro the best option to commute, and shopping errands, even the luxury ones, will quickly lead to overcrowded areas full of tourists. While the thought of getting on the metro in the daylight should bring any stress seems exaggerated and dramatic, at the very least, bringing your 20k Hermes Birkin bag on the train appears equally unreasonable. Walking down Champs-Élysées on a Saturday afternoon with your latest Hemès score also brings little comfort or assurance.
Normally, neither metro rides nor walks in overcrowded areas should make you feel anxious. Carrying your dream designer bag should bring satisfaction, pride, and excitement, not stress and worry. Luckily, there are services to take care of just that.
What does a luxury bag insurance cover?
We believe that peace of mind is the ultimate luxury, and here are some examples of unfortunate scenarios that could go by much smoother if your bag is insured.
The insurance for your luxury bag will protect you in case your bag gets stolen, damaged, and, in some cases, even if it is lost. Some people choose to have their luxury bags collection simply included in their general house insurance policy.
Considering that a bag is meant to be carried outside and often traveled, we strongly suggest purchasing luxury item insurance, specifically focusing on one luxury bag or your entire collection.
Conducting our independent research and collecting feedback from customers of many insurance companies, we realized that while insuring your valuable item is essential, it is no less important to give a lot of thought to not only which insurance company you will go with but also what to focus your attention on priorly signing the contract. Unfortunately, when it comes to protecting your valuables, there is some homework to do, which is way less fun than shopping for those valuables.
How to get insurance for a luxury handbag
Getting your luxury handbag insured is a relatively straightforward process. You don't even have to go in person in most cases, as the submission is done online. You simply need to upload the images of the luxury item you would like to insure and present the documents required by the insurance company, which in most cases include but are not limited to personal statements, financial status, and legal history.
In some countries, purchasing individual insurance for your luxury item might be more challenging or have unsatisfying restrictions (insurance coverage is only active in the country you got it in). In such a case, we suggest looking into companies in other countries that provide insurance plans for their international clients. Doing so, you must be fully aware of any differences between the company's international practices regarding their subscription fees and handling international claims. (the approval period, coverage amount, additional fees, etc.)
Everything you need to know before getting insurance for your luxury handbag
Keep in mind that the insurance business, by its nature, is designed to collect more money than ever releasing money. Therefore, no matter how good and trustworthy the insurance company you hire, you must remain skeptical, read the contract from cover to cover, and ask every question you have.
When purchasing an "all risks" insurance policy, be aware that, in reality, there are quite many exceptions in which your claim would not be approved for reimbursement. You will find these exceptions in your insurance company's contract. Only after carefully reading it will you know what unfortunate circumstances are not covered even by the "all risks" package.
Before speaking with an insurance agent on the phone, make a list of practical questions to go over after the general introduction to their packages. Focus on questions regarding the possible cases in which your insurance claim could get denied. Keep in mind that a phone consultation from an insurance agent will not give you a full disclosure of the company's claim practices nor possible loopholes in the company's coverage policies. The company contract and their official policy guide are the only legal confirmations you should trust.
While the application process is relatively simple, the approval is not guaranteed. After carefully reviewing your application, the insurance company holds the right to deny your request. The more selective the insurance company is, the more requirements they might have; age, financial status, and legal history are among but not limited to the reviewable factors.
Another consideration is how long you must remain a customer after successful claim collection. In unfortunate circumstances where you have to file a claim repetitively, the company might treat your following cases with greater attention and possibly deny your secondary request if they don't find it solid. Nevertheless, you might still be required to continue your subscription due to the first successful claim payment. So be aware of the subscription conditions regarding its period.
Despite the "all risks" policy, getting your claim approved in case your item got lost could be challenging, and the approval of your claim is not guaranteed regardless of how long you have been paying your insurance policy. If the company finds you responsible for losing the item or the circumstances in which it got lost are unclear, they might deny your claim.
Getting insurance for Hermès Birkin bag
Make sure the coverage limit for your luxury item satisfies you. If your insurance coverage is equal to the market value of your luxury bag, confirm if this evaluation is set to the date of your insurance purchase or the time a claim has been made. See if the fluctuation in the value of your luxury handbag would affect your claim settlement. Consider that investment bags like Hermès Birkin or Hermès Kelly usually go up in price after the purchase.
Confirm that your insurance policy covers your item abroad. Check if your international insurance coverage is truly worldwide or is limited to selected countries. In addition, see if the travel period, which is often limited to 90 days, is satisfying to you.
Luxury bag insurance prices
The price of your designer handbag insurance is given upon quotation request and depends on the value of your bag. So, while we cannot provide specifics, we strongly advise you to compare prices among several companies, as severe price differences are possible.
Insurance companies for luxury bags
While there are many insurance companies, your decision must be based strictly on personal choice from in-depth research and trustworthy information. Without suggesting any of the companies mentioned below, here is a short list of insurance companies providing insurance for luxury bags, to start your independent research from.
While Brit Insurance works in many insurance sectors, its luxury bags section showcases its strong awareness of the luxury handbags market and its value.
Assetsure provides insurance for various luxury items, including designer handbags. You can find their customer's feedback on Trustpilot. Although the company undeniably has negative comments (which we suggest reading), we appreciate Assetsure's transparency by placing its TrustPilot account on top of its homepage.
This company seems to have focused expertise on the luxury bag sector, among other luxury items, such as fine watches. This company is known for its user-friendly application. Based on the customer's feedback, it seems that keeping track of your luxury items rotation (removing or adding) items to your insured collection is smoother than with most insurance companies, and the overall experience using the WAX Collector app is as close to fun as it can possibly get, dealing with insurance. WAX clients also refer to the company's lovely customer support.
This company provides tailored insurance policies for your luxury handbag collection or individual designer bag based on your special requests. From the information on their website, it seems that Saxon Insurance provides flexibility to personal circumstances and adjustable plans tailored to your unique needs.