Special Insurance for Designer Clothes

How to protect your high-end wardrobe against losses

Fact checked by Suzanne KvilhaugReviewed by Eric EstevezFact checked by Suzanne KvilhaugReviewed by Eric Estevez

Special insurance for designer clothes helps cover designer clothes, such as Dolce and Gabbana, Oscar de la Renta, Hermès, Marc Jacobs, and Chanel. If a covered event occurs, like a fire or theft, a standard homeowners insurance policy usually provides inadequate compensation for expensive garments and elegant accessories.

As a result, if you want to cover your designer collection that graces your walk-in closet, you’ll likely need special insurance for designer clothes.

Key Takeaways

• Traditional homeowners insurance policies often exclude damage to high-value garments caused by various risks like floods, earthquakes, mold, moths, and accidents.
• Homeowners insurance may not cover the loss of expensive shoes and handbags if the loss is less than the deductible.
• Some insurers, like AIG’s Private Client Select Services, provide specialized protection couture and designer clothing.
• This comprehensive policy covers made-to-measure and ready-to-wear garments, shoes, handbags, and other accessories.

Who Needs Clothing Insurance?

Unlike other collectible items such as art, jewelry, and antiques, insurance companies typically lump clothing, shoes, and handbags into the household contents category. These items are subject to high deductibles and a myriad of limits and exclusions, such as floods, moth damage, and mold.

Furs can be—and often are—itemized on a policy rider or floater. However, if you’re a designer-clothing aficionado, you know a simple sundress can cost as much as a fur—several thousand dollars.

In other words, if your closet bursts at the seams with designer clothes, handbags, shoes, and furs, the contents could easily add up to more than a million dollars. That’s assuming, of course, that you have only one designer-decked closet. Throw in the vacation home, and the pied-à-terre and you may be pushing $1.5 million.

So, how do you protect your expansive and expensive wardrobe? Fortunately, there’s an insurance product for that.

AIG’s Private Client Select Insurance Services

In 2015, AIG Private Client Group released a wearable collections coverage as a specialized insurance solution to protect couture and designer garb.

“Much like collectors of fine art, vintage cars, or wine, customers who invest in their wardrobes can be quite passionate about their acquisitions,” said Ron Fiamma, vice president and global head of private collections for AIG Private Client Group. “To help safeguard these items, our new couture solution closes the gaps in a traditional homeowners policy and enables us to proactively mitigate risks for these collections.”

AIG worked with Garde Robe Online—an apparel storage and preservation service—to identify coverage features and develop a policy covering high-end designer fashions and accessories, many of which might be unique or custom-made.

In 2023, AIG partnered with private equity firm Stone Point Capital and moved its Private Client Group to a new platform, rebranding it as Private Client Select Insurance Services (PCS). The move was done to “improve product offerings to better serve the High and Ultra High Net Worth markets.” said Peter Zaffino, Chairman and Chief Executive Officer of AIG.

What Does Designer Clothes Insurance Cover?

The Private Client Select couture collection insurance covers made-to-measure and ready-to-wear garments as well as:

• Vintage garments
• Shoes
• Handbags
• Other accessories
• Celebrity clothing

The policy covers damage caused to designer apparel by floods, earthquakes, mold, moths, and accidents. These risks typically get excluded from traditional homeowners insurance policies.

AIG’s couture collection policy includes coverage for custom, work-in-progress couture, and shoes. It also reimburses you for expenses if you remove your designer wardrobe from your home before an impending threat. The coverage extends globally—even in transit, meaning worry-free travel if your bags containing designer clothing get checked at the airport.

The policy also pays for the repair or replacement of garments and includes a loss-in-value clause. In other words, if your vintage Chanel suit gets damaged in an earthquake, you can get compensated for the reduced value and the repairs.

The in-house collection management specialists can help preserve the long-term value of collectible garments, shoes, and handbags. The insurance contract includes vulnerability assessments, emergency planning, and referrals to wardrobe preservation specialists.

Important

If a designer piece is damaged by a covered loss, the insurance also pays for dry cleaning and restoration costs by a high-end garment care specialist.

The Cost of Designer Clothes Insurance

If you have a designer wardrobe valued at $1 million, the total starting premium might cost $3,000 annually to insure your collection. However, many factors can increase the cost, depending on the potential risks to the clothes and the location of your clothing collection. For example, coverage for a wardrobe in a flood zone, hurricane-prone area, or a rarely used vacation home will likely cost more.

Insurers may use incentives to clients who use professional storage services where garments are covered in breathable garment bags and held in climate-controlled spaces. For example, AIG’s couture coverage includes benefits like agreed-value coverage, no deductibles, and loss-in-value payments.

Do Homeowners Insurance Policies Cover Designer Clothes?

Typically, homeowners insurance policies exclude high-value garments damaged by mold, accidents, floods, and earthquakes. Although homeowners insurance comes with personal property coverage, a standard policy may not provide adequate coverage for expensive designer clothing.

Can You Insure Designer Clothes?

Yes. Insurance policies exist for designer clothes and expensive accessories. Some of these high-end comprehensive policies cover floods, earthquakes, mold and moth damage with no deductibles.

Can I Get Handbag Insurance?

Handbag insurance coverage protects your handbags from theft or flood damage. The policy can be essential for your collection since resale prices can range from $1,500 to over $5,000.

The Bottom Line

Considering North America has nearly eight million high-net-worth individuals (HWNIs) with more than $1 million in liquid assets, insuring their expensive clothing, accessories, and valuables is essential. Homeowners insurance usually provides inadequate coverage for high-value garments. If you own an extensive collection of couture, designer wardrobe insurance can help protect your investment.

Read the original article on Investopedia.