Investment insurance does not protect you from loss of value though many interpret the term that way. It protects you against loss of the investment. Meaning, if you invest in something like collectibles, this insurance will cover unexpected occurrences such as theft or fire but not deprecation of value.
No matter what you are investing in there is an inherent risk in doing so; it’s the nature of investing. And since investing varies based on the individual and his or her knowledge, capital, and taste it is not something that could be readily insured against deprecation. There really is no such thing as a 100% guaranteed investment.
Obviously some investments are safer than others. The way they work is: the higher the risk, the higher the return and the lower the risk, the lower (and often slower) the return. If you go in for something called a guaranteed investment you have a very low chance of losing the investment but you also will not get a lot out of it.
You might be asking, “What about deposit insurance?” That’s a fair question. Deposit insurance will insure certain types of bank deposits up to a certain amount. In the United States the Federal Deposit Insurance Corporation does this. In Canada, you’re insured under the Canadian Deposit Insurance Corporation. This is not the same as investment insurance.
If you invest in things like art, antiques, precious metals, etc having investment insurance is a safety net for physical damage or loss. If there is a fire your antiques could badly damaged or destroyed and without insurance your entire investment could literally go up in smoke. We can help you avoid that worry.
Call James~Campbell and talk to one of our knowledgeable brokers about your investments. We will go through all your options and find a policy that will keep you covered so you can concentrate on building your investments rather than worrying about their safety.