Fast fashion has become all the rage over the past decade, with franchises learning to provide cheap knock-offs which actually look good. This has certainly made the fashion world more egalitarian, but it has created its own problems. The environmental impact of fast fashion is catastrophic.
But beyond the drawbacks of fast fashion, it simply does not match up to the fashion created by the best designers. On the contrary, if you really want to look good, individual pieces or outfits that cost a bit extra are what will turn heads. Ideally, you’ll want to fill your closet over time with a range of exciting items.
At some point, the contents of your wardrobe may cost thousands of dollars. Now, with expensive items like jewelry, insurance is a no-brainer. Getting extra coverage for your jewelry on your homeowners or renters insurance policy will save you financially if an expensive item is snatched. But there is a difference between an expensive piece of jewelry and an equally expensive outfit – one is far easier to steal and offload.
Still, the thought of paying thousands of dollars for a designer dress and leaving it uninsured will make anyone uneasy. Is it worth adding extra coverage? Or is that too extravagant?
Here are some of the considerations.
You’ll almost never claim
The reality of getting insurance for your designer clothing is that you’re unlikely to ever claim. The chances of your clothing being stolen in a break-in are minimal and these items will rarely leave your home. When they do, you are likely wearing them, in which case they will not be stolen and any damage is unlikely to be covered by insurance.
If something happens to your home, however, your contents insurance may not be enough to cover these items. So, your insurance will be significant if there is a fire or flood.
The fact that you are unlikely to claim may not be an issue, though, because…
Low risk means low cost
Insurance is priced according to risk level. As such, a designer dress will not cost nearly as much to add to your insurance as a ring or necklace. The fact is that because the risk is so low, adding your designer clothing to your insurance may not have much impact on your premium, especially if you only have a few items to add.
Certain items will, of course, be at higher risk of theft. A designer bag, for example, can be easily snatched or simply left behind after a long night out. Losing your designer bag can be taxing financially and emotionally. Adding it to your insurance may be a bit more expensive but is not a bad idea.
For some people, the number of expensive designer clothing items they own can be counted on one hand. These have been bought individually over time and are cherished. However, their theft or destruction will not be a huge financial loss.
Others may have large wardrobes with dozens of expensive items. These can add up to a significant value that far exceeds your home contents coverage. In this case, adding up the value and getting specific coverage for it is highly recommended. Rather than risking losing tens of thousands of dollars (or more) worth of fashion in a house fire, it is worth paying more for scheduled personal property insurance.
Should you insure?
Ultimately, whether or not you should insure your fashion items has nothing to do with extravagance. On the contrary, it depends on what you own and how much it will cost to add extra insurance. Try and determine how much you have to lose and what you’re willing to pay to prevent that financial loss. In some cases, extra insurance is highly recommended.