Safeguarding Your Collection

"Do you want your collection more than the thief does?"

The sad truth is that crimes against property are on the rise. Burglary and simple theft almost qualify as growth businesses. The current arrest and conviction rate is abysmal, and restoration of property even worse. Some of our employees were recently victims of an airport "snatch and grab." The good news was that what the thieves thought were coin cases held only supplies. The bad news was that despite being provided both perpetrator descriptions and a license plate number, the police were not optimistic, or perhaps not interested. The fact that the thieves got the wrong bags made the case relatively "insignificant" in the overall scope of things. We don't know if that kind of attitude is endemic; perhaps there are only enough personnel resources to handle the more serious crimes these days. In any event, it certainly illustrates the need for each of us to upgrade our own attitudes concerning security, particularly if we own the kind of valuables prized by thieves.

Security Versus Access — A Timeless Quandary

Most collectors like to have their collectibles close at hand to study and enjoy at their leisure. That's what collecting is all about. Routinely transporting the collection to and from a safe-deposit box is tiresome at best. Conversely, no one wants to lose his or her favorite collectibles to a burglar. The unfortunate fact is that the inconvenience is constant and the significance of security is apparent only after you've been robbed. As a result, even people who know better may become lax over time. To avoid this, write your own personal security plan and include these elements:

• Home Security — your collection is at risk from theft, fire, water damage and other natural disasters. If you are going to keep articles of substantial value at your residence, you should employ several proactive measures to protect them.

  1. Monitored Security System
     A security system is the core of any security plan. This includes both theft and fire alarms that are monitored externally and reported immediately to police and fire departments if triggered. Hardware can be installed for a few hundred to a few thousand dollars and monitoring is only a nominal monthly expense, currently around $25-$75. A monitored security system sends most burglars looking for easier game and puts the more daring ones on the clock. Once the system perimeter is breached, the burglar has only the response time to grab what he can and attempt an escape.

     The following devices and practices are designed to minimize the number of valuables a burglar can locate quickly:

  2. Home Safe
     Safes are obvious deterrents against theft, but have additional value in the event of fire or natural disaster. Costs are based on size and fire (temperature) "TL" rating. You should make your choice only after discussing your particular needs with an expert. Many insurance companies require a home safe to write a collectibles rider to your Homeowner's Policy, while others will discount the rider based on the quantity and quality of the safeguards you employ.

  3. Deterrent Practices
     Whether or not you employ a security system or a safe, there are actions that will reduce the risk of a successful burglary. A primary deterrent is to always leave the impression that someone is at home. This can be accomplished in part by remembering to have your paper and mail held while you are out of town and by putting one or more of your lights on timers. "Beware of Dog" signs (whether or not you own one) on the back fence may ward off a potential burglar.

  4. Camouflaging Valuables
     Most people are predictable, and burglars know all the "good" hiding places. They still must deal with external or self-imposed time constraints. The longer a burglar stays in a house, the greater the likelihood of capture; and the burglars know that, too. Things you should know and avoid: most people keep their valuables in the master bedroom followed closely by their home offices if they have one. Guess where burglars go first? So, leave decoys. One gentleman we know has numerous coin albums (filled with pocket change) in plain sight on the bookshelves. Another acquaintance has an old safe that is heavy but moveable. It sits in the corner of his home office and contains absolutely nothing. Its predecessor was taken in a burglary where the thief left several thousand dollars worth of electronic and musical equipment because he thought he'd hit the jackpot. The acquaintance now has a monitored security system and modern (wall) safe, but keeps the decoy as a reminder of the importance of security, and perhaps just a bit of humor about the burglar who only got an empty box (and maybe a hernia). If you don't have a safe, small valuables are best hidden in a false outlet with something plugged into it. A collection of small items should be spread over several non-obvious locations. While you may not be able to totally foil a burglar, you may at least be able to minimize his success.

• Off-Site Storage & Transport
  The primary off-site storage option is a safe-deposit box either at a bank or private vault. If you can find a location close to either home or work, the inconvenience factor can be minimized. Sites with weekend access are a major plus, but they are scarce. There's no question that safe-deposit boxes offer very secure storage, but don't let that lull you into complacency. There are still a few storage and security guidelines you need to remember and follow.

  1. Rent a box that's big enough to hold everything easily.

  2. Use a desiccant such as silica gel to remove any moisture, and change it regularly.

  3. Never forget that your greatest security danger is in transporting the collectibles to and from the box. Use a nondescript bag or carry-all to hold them, and try not to carry too much weight at one time.

  4. Have someone drive you to the box site or park as close to the entrance as possible to minimize your time on the street with the valuables.

  5. Avoid establishing a pattern in picking up or dropping off your collection.

  6. Be aware of what's happening around you when transporting your collectibles. Check your rearview mirror frequently. If you think a vehicle may be following you, do not drive directly to your home. Make several detours that do not follow any logical traffic pattern and see if you lose the suspect vehicle. Know where the closest police station is and if you become firmly convinced that you are being followed, drive directly there.

  7. Carry a cell phone with you when transporting valuables. A frightening new robbery technique is to rear-end a vehicle and then rob the victim when he or she gets out to assess the damage and exchange insurance information. You'll have to use your judgment for the situation, but if you're carrying valuables and get rear-ended, you should stay in the car and call 911 on the cell phone. Don't hesitate to tell the operator that you're carrying valuables and are concerned about the possibility of robbery. If you really believe that it's a setup, don't stop; call 911 and tell them your intent while driving to the police station.

  8. Airports have also become a favorite work place for thieves. There's a steady flow of people, noise, confusion and a sense of urgency from trying to meet deadlines in an unfamiliar environment. The usual method is the snatch and grab; the thief targets someone who appears distracted, grabs their briefcase or bag and melts into the crowd. A variation is to work in teams where baggage is being unloaded at the curb. One or more of the thieves will distract the victim, while others will grab the bags and then all will make their escape in a waiting vehicle. Your only protection is constant vigilance. You should always have either a grip or your foot on any case containing valuables and should become doubly suspicious if a stranger tries to engage you in conversation. Strange as it sounds, some people carry a loud whistle when transporting valuables. If someone attempts to grab a bag and you start blowing the whistle, the thief is put on the defensive. Everyone else in the area stops to see what the noise is all about so the thief loses the camouflage of the crowd.

• Shipping
  Occasionally, you may need to ship valuable articles to another party, and again, there are rules to follow that will minimize the possibility of loss. First and foremost, do not put anything on the outside of the package that would hint at its contents. If an address contains identifying words—coins, numismatics, gold, antiques, or anything similar—use initials instead. Additionally, look at the container you're using. We recently received a package from another dealer whose mailing address labels used initials, but the shipping person packed the coins in a "Redbook" box that was clearly marked, "Guidebook of U.S. Coins."

  Pack the items securely so that they do not rattle and betray their presence. Loose spaces (such as in tubes) should be filled. Pieces of Styrofoam "peanuts" are good for this purpose. Make sure that your shipping box is strong enough for the included weight and bind it with strapping tape. If you are using Registered Mail (the preferred method for most collectors), the post office has a requirement that all access seams be sealed with an approved paper tape.

  Method of shipment is a choice that weighs value, risk and cost. USPS 1st Class or Priority Mail with Insurance is the most cost-effective method up to $500 value. The rate of loss has dropped considerably over the last decade, so this is a reasonable option for inexpensive items that can be replaced. Above $500 value, Registered Mail with Postal Insurance is both cost-effective and extremely safe. The one caveat is that the real insurance maximum for registered mail is $25,000. The Post Office wants you to indicate if the contents exceed that amount, and will charge you more for a higher claimed value; they will not, however, pay more than $25,000 on a claim. If you have more value than that, you will need to send multiple packages or seek supplemental private insurance. FEDEX, UPS and other private shippers have become popular in recent years. They offer fast, guaranteed delivery with a high success rate. They also appear to offer some insurance options, but rare coins are specifically excluded. You will need to get private insurance coverage if you wish to use one of these shippers, or you may ask the other party if they have a shipper account and insurance that would cover the shipment.

• Insurance
  No matter how many security measures you employ to protect your collection, you also need to acquire suitable insurance to protect you should you suffer a loss of part or all of the collection. This can also be a complicated area as insurance companies write policies in a language all their own. We're not trying to criticize insurance companies; they're in business to make money and they perform a valuable service. As someone seeking protection, though, you need to understand that contract language will generally favor the insurance company, and you need to know exactly what you're getting. That means asking questions. In the case of coins, you need to be particularly certain of what coverages apply when the coins are at home, in a safe-deposit box or in transit, as well as any additional security requirements for each circumstance. It is not a cut-and-dry situation. For example:

  Most Home Owner's policies DO NOT insure your coin or jewelry collection beyond $1,000 (combined with all other items defined as a "valuable"). Your insurance company can usually offer you a rider for more specific coverage, but as it's not their standard business, they are typically not very flexible. You would have to provide a fixed inventory and it would likely be a major paperwork exercise to change it when you buy or sell.

  Some insurance companies may require an "appraisal for insurance." If you choose a company that has this requirement, guidance is available in Chapter 8.

  Like most business circumstances, you should analyze your options against your personal situation and then shop for the best deal. In this specialized field, the best option often comes from a company that is familiar with the needs of collectors. If this route appeals to you, we have listed several companies in the Appendix titled, "Insurance Companies Offering Collectible and Numismatic Coverage." In the case of collectibles other than coins, you may want to ask a dealer to recommend a knowledgeable insurance company.

  Coins and other small items are popular with burglars and thieves. Regretfully, the risk involved means you need to temper your enjoyment of collecting with some caution. In addition to the measures already suggested, you need to be careful about discussing your collection (and where you keep it) with others. It's said that any piece of information shared with one person reaches ten, and an interesting piece of information— well, use your imagination. Enjoy your collection, but stay vigilant.

TIPS FOR HEIRS: This chapter contains advice that may be the most important you will read. Seasoned collectors are generally very security conscious, but those who only recently have come into possession of a collection must immediately understand the risks and responsibilities that come with this unfamiliar asset. Most importantly, get the collection (if it's small enough) to a safe deposit box immediately. Until you have it safely tucked into a bank vault, don't tell anyone about it. With larger objects, you may want to consult with an insurance agent about the best way to safeguard them until they can be dispersed.