$2.5M Jordan Rookie Card Breaks Record, Spotlights Need for Specialty Coverage

A signed 1986-87 Fleer Michael Jordan rookie card recently sold for $2.5 million at Pharrell Williams’ auction house Joopiter, setting a new record for the category. The final price, which included a 25% buyer’s premium, is the highest ever paid for a Jordan rookie card, far exceeding the previous record of $205,000 set last year for an autographed Jordan rookie card and $840,000 set in 2021 for a non-signed Fleer Jordan rookie card, ESPN reported.

The card was one of nine signed by Jordan in 2024 — a rare event, given his longtime agreement with trading card company Upper Deck, according to the outlet. It is also the first sports collectible that Joopiter has offered since launching in 2022.

“This is a card that was created a long time ago but was not signed until 2024. The sale really demonstrates that it still holds significant value with that signature, whether it was signed back in the ‘80s or signed current day,” said Amber Mock, Director, Personal Insurance, Burns & Wilcox, Kansas City, Kansas.

This is a card that was created a long time ago but was not signed until 2024. The sale really demonstrates that it still holds significant value with that signature, whether it was signed back in the ‘80s or signed current day.

More consumers today are “recognizing the value of sentimental items and other meaningful assets in their collections,” Mock said, and they are increasingly seeking out insurance coverage for these items. A Personal Articles Floater is usually recommended for high-value collections, as standard Homeowners Insurance policies would typically have limited coverage for collectibles.

“A lot of individuals have valuable items in their home and may not even realize their worth,” said Stephanie Pittman, Underwriter, Personal Insurance, Burns & Wilcox, New Orleans, Louisiana. “They often assume the contents coverage on their Homeowners Insurance would cover something like that, but that is not necessarily the case. They may only get half of what it is worth due to many standard homeowners policies having limits for certain valuable categories which may not be enough to cover the item’s true worth.”

A lot of individuals have valuable items in their home and may not even realize their worth.

Furs, fine arts, silverware, musical instruments, jewelry, firearms, and antiques are other common collectibles, Pittman said.

One of the primary reasons individuals may purchase a Personal Articles Floater is the risk of mysterious disappearance. For jewelry, this is particularly important, Pittman explained. “Standard homeowners and renters insurance policies typically have limited protection for valuables like jewelry and may not cover losses due to mysterious disappearance,” she said. “For Fine Arts collections, a personal articles floater can also cover accidental damage, such as accidental drops, breaks or rips. That is another important benefit.”

Growing demand for sports collectibles, vintage items

Sports collectibles have boomed in recent years, with high-profile sports history pieces breaking auction records each year, industry news site Sportico reported in April. In March, a record was set for the most expensive women’s sports card ever sold when Caitlin Clark’s one-of-one 2024 Panini Prizm WNBA Gold Vinyl autographed rookie card sold at auction for $366,000, KCCI Des Moines reported.

The collectibles market overall was valued at about $448.57 billion in 2023 and was expected to grow about 3.8% annually between 2024 and 2032, according to data from market intelligence firm UnivDatos. New generations entering the collectibles market are interested in digital assets, pop culture, and non-traditional investments, the firm noted, and demand for sports memorabilia, trading cards, vintage toys, and comic books remain areas of high demand among U.S. collectors.

Furniture, jewelry, firearms, and antiques are other common collectibles, Pittman said. Homeowners should “one hundred percent ask about a Personal Articles Floater” for their high-value items, Mock added, whether acquiring a single collectible or considering the total value of a large collection of something like sneakers, Legos, or vintage dolls.

“There are a lot of sublimits on a standard Homeowners Insurance policy,” she said. “Most of the time, the sublimits applied on the policy do not even come close to what these assets are truly worth.”

Some homeowners seek out a Personal Articles Floater after inheriting a family collection of fine art, silverware, or even lamps and vases, Pittman said. Unfortunately, many individuals do not realize the importance of separate insurance coverage for their collections, leaving them vulnerable to uninsured losses. “We write a lot of high-value homes, but many of these homeowners are not purchasing a Personal Articles Floater,” she said.

Protecting against fire, theft, other perils

Although the market for collectibles is growing, owners of high-value items face significant risks. A rare coin or trading card could be vulnerable to fire, theft, water damage, accidental breakage, mysterious disappearance, and other perils — some of which may not be covered under a standard Homeowners Insurance policy, Mock said.

“A Personal Articles Floater will offer an all-risk type of coverage, whereas Homeowners Insurance may not cover things like mysterious disappearance or theft of firearms,” she said. “If you are relying on your Homeowners Insurance policy for coverage, it may not apply. That is also the case when it comes to limits, especially.”

With a Personal Articles Floater, items are individually scheduled and insured for an agreed-upon value, coverage is usually worldwide, and there is often no deductible. “Every consumer should be inquiring about whether or not they have adequate coverage for their assets,” Mock said. “In my opinion, everybody could use this coverage. It does not necessarily need to be a $2.5 million Jordan rookie card — it could be an important piece of jewelry that has been handed down for generations in your family, or a cigar, whiskey, or bourbon collection. Anything of value should be properly insured, and in most cases, it can be insured to value.”

It does not necessarily need to be a $2.5 million Jordan rookie card … Anything of value should be properly insured, and in most cases, it can be insured to value.

Family heirlooms often ‘overlooked’

One of the primary reasons individuals purchase a Personal Articles Floater (PAF) is the risk of mysterious disappearance. For jewelry, such as wedding rings, this is particularly important, Pittman explained. “If you lose your ring, that would typically be covered by a Personal Articles Floater,” she said. “It can also cover accidental breakage, like if you had a painting fall off the wall and break. That is another important benefit.”

Items acquired through inheritance are “often overlooked” when it comes to insurance, Mock said. “Things that are passed down have sentimental value, but it is also important to understand what monetary value it actually holds,” she said. “My advice to the average consumer is that if there is something you feel is of importance to your family and your legacy, it is likely that it holds additional value. It is always worth asking a reputable local appraiser to find out whether it is something that should be scheduled separately.”

One common concern about purchasing a PAF is the potential cost. However, this type of specialized insurance is often more affordable than people might assume, Pittman added.

“Premiums are typically determined as a percentage of the item’s appraised value, usually ranging from $1 to $2 per $100 of insured value per year,” she said. “The majority of individuals should look into it. It’s a valuable tool for protecting your most cherished and valuable possessions from a wide range of potential risks, ensuring you have adequate coverage beyond the limitations of standard insurance policies.”

A Personal Articles Floater is a valuable tool for protecting your most cherished and valuable possessions from a wide range of potential risks, ensuring you have adequate coverage beyond the limitations of standard insurance policies.