A jersey worn by Babe Ruth recently sold for more than $24 million and broke the record for the most expensive piece of sports memorabilia ever sold at auction, according to reports. The baseball legend wore the jersey on Oct. 1, 1923, when he made his famous “called shot,” pointing to a flagpole at center right field before hitting a home run.
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The $24.12 million sale far surpassed the previous record-holder for the highest-priced sports collectible sold at auction: a rare mint-condition Topps 1952 Mickey Mantle card that sold for more than $12 million in 2022.
“The fact that the jersey shattered the previous record for an item being sold at auction is pretty crazy, but the demand and the market value for these sports items is only going to go up as they get older,” said Ethan Buske, Underwriter, Personal Insurance, Burns & Wilcox, Indianapolis, Indiana. “Sports memorabilia tends to be one of the most popular collections, because fans really remember those iconic sports moments.”
The record-breaking sale shows that the Hall of Fame icon still has such an impact on fans,” said Alison Sanelli, Underwriter, Personal Insurance, Burns & Wilcox, Toronto, Ontario. “It is impressive, to say the least,” she said.
Sports memorabilia tends to be one of the most popular collections, because fans really remember those iconic sports moments.
Whether someone purchases a single high-value sports collectible or has accumulated a collection of items over time, such as baseball cards, a standard Homeowners Insurance policy will usually not be sufficient to cover these items in the event they are damaged, lost or stolen. Instead, a standalone Personal Articles Floater policy is usually needed.
“Anybody with a collection of any sort should be looking to purchase a Personal Articles Floater,” said Danielle Alessandrini, Associate Vice President, Underwriting Director, Personal Insurance, Burns & Wilcox, Detroit/Farmington Hills, Michigan. “Depending on where and how the item is stored, you could run the risk of losing it to fire, water damage or theft.”
Sports memorabilia among collection trends
The sports cards and memorabilia industry is “booming,” with a global valuation of sports memorabilia expected to reach $227.2 billion by 2032, luxury lifestyle publication the Robb Report noted in an article last year.
“I see a lot of sports memorabilia collections,” Buske said. “They are becoming more popular, along with shoe collections and music memorabilia.”
Anybody with a collection of any sort should be looking to purchase a Personal Articles Floater. Depending on where and how the item is stored, you could run the risk of losing it to fire, water damage or theft.
It is not surprising that the recently sold Babe Ruth jersey would sell for such a high value, in part because clothing items are less common, Alessandrini said. “Clothing items are very rare. Anyone who is going to collect a jersey is likely going to keep hold of it for a long time,” she said. “Clothing items are rarely sold, but it just depends on the owner and what it means to them — whether it was a passion buy, something they enjoyed, or something that was passed down to them.”
A Personal Articles Floater is an “all-risk” policy that is designed to provide broader coverage for high-value items. There is usually no deductible, and policies can offer worldwide coverage. These policies are common in the U.S. and Canada, though sports collections, in particular, may be somewhat less popular in Canada, Sanelli said.
“I would imagine that collectibles like these are much more popular and noteworthy in the U.S. because of all the sports franchises within the country,” she said. Championship rings, baseball cards and hockey cards remain popular collectibles in Canada; however, individuals more commonly seek out a Personal Articles Floater for “fine art, jewelry and perhaps furs,” Sanelli said.
‘Very limited, if any’ coverage under Homeowners Insurance
After a burglar stole more than $132,000 in antiques from a home in Cornwall, Connecticut, some of the missing items, including paintings, sculptures, and antique masks, were later found posted on an auction website. In July, a woman was charged in connection with the crime, WTNH reported. Also in July, a man had $2 million worth of baseball cards stolen from him at a card convention in Allen, Texas, according to USA Today. After a house fire in Huntington, New York, this summer, the resident said a collection of many artifacts she owned may have been damaged. Although only two rooms were damaged by the fire, there was “significant” water damage, News12 Long Island reported in July.
Collectors must keep these risks in mind, even when they are storing their items offsite or allowing them to be on display at a museum “Individuals are likely going to want to see an item like the Babe Ruth jersey because it is one-of-a-kind,” Buske said. “You have to think about if it is going to be exhibited and who has access to it. Collectibles like the jersey typically are not going to be kept at your residential home. Theft is the biggest concern if individuals know what the item is. You also want to have it covered for damage while it is in transit.”
Anyone with an existing collection or who plans to purchase a high-value item should understand what their Homeowners Insurance would cover for these items. Typically, “it is very limited, if there is any coverage at all,” Alessandrini said. “With these passion buys or collections, they are typically not covered to the full extent with Homeowners Insurance, so they really need a Personal Articles Floater policy.”
Also known as Inland Marine Insurance, a Personal Articles Floater is designed to provide full coverage for high-value items. These collectibles should be appraised regularly to ensure they are covered to their full value.
“It is specifically tailored to cover your investment in the item,” Buske explained, adding that many individuals do not realize that the personal contents coverage under their Homeowners Insurance will not be sufficient for even smaller collections, such as jewelry. “I do not think it is as widely known as it should be. Their items will often far exceed the contents coverage they have, but they would also be subject to the policy deductibles and any policy limitations, as well.”
According to Sanelli, an important step in purchasing a Personal Articles Floater is to obtain ownership documentation and proof of authenticity for the collectibles you want to insure. “The documentation piece is so important because it reinforces the value of how we should be insuring the risk,” she said. “What has been the nature of how it has been stored? That gives you a better idea of how well it was preserved, and it gives peace of mind that it will not be underinsured.”
If a collector has trouble finding insurance coverage for their item, they should know that specialty markets are available. “There is always an option,” Sanelli said.
Protecting items for the long-term
In June, police in Little Rock, Arkansas warned the public about scammers offering large profits for collectible coins but not following through on the payment or selling collectible coins of lesser value to the victims, KARK 4 News reported. In May, two men in Washington state were arrested after tricking collectors into purchasing fake sports and Pokémon trading cards for hundreds of thousands of dollars, the New York Post reported.
When purchasing a collectible item, buyers should be careful to avoid such scams, Buske said. “There are a lot of duplicates and individuals selling multiples saying they are the original but that are just replicas,” he said. “Sometimes it is just an impulse purchase. Have a conversation with your insurance broker and your carrier partners and verify it is legitimate.”
Some things are beyond everyone’s control, but that is what insurance is for. If anything were to happen, the appropriate coverage should respond.
Other trending collectibles include Legos, Barbies, comic books, guitars or even rocks. In June, a Boba Fett action figure toy from 1979 that was never officially released in stores sold for $525,000, breaking the record for the most valuable vintage toy ever sold at auction, CNN reported.
“No collection is too small that you should not ask about coverage,” Alessandrini said. “You want to protect your collection against all perils, which is exactly what a standalone Personal Articles Floater can do.”
Once an item is obtained, another key step is ensuring it will be protected properly in your home or elsewhere, Sanelli said. “If it is sent to a gallery, what are the security measures? If it will be at home, what are your own homeowner security measures?” she said. “With a jersey, for example, you would want to ensure that it is covered in a special glass box where UV light will not damage the material, where it will not be vulnerable to wine or food spills, and if a burglary does take place, that the item is safe enough to prevent it from being stolen.”
Of course, “some things are beyond everyone’s control, but that is what insurance is for,” Sanelli said. “If anything were to happen, the appropriate coverage should respond.”
