A pair of ruby slippers worn by Judy Garland in The Wizard of Oz recently became the most valuable movie memorabilia ever sold at auction, fetching $32.5 million in the Heritage Auctions sale that closed Dec. 7. The iconic shoes were sold alongside the hat worn by the Wicked Witch in the 1939 film; the hat sold for $2.9 million, NBC News reported.
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“The high auction sale really speaks to the nostalgia of the consumer and where the value comes from on an item like this,” said Renee Voigt, Senior Underwriter, Personal Insurance, Burns & Wilcox, Scottsdale, Arizona. “These items are irreplaceable.”
The high auction sale really speaks to the nostalgia of the consumer and where the value comes from on an item like this. These items are irreplaceable.
Protecting an item of such monetary and sentimental value is a primary consideration for collectors, who would need to purchase a Personal Articles Floater to insure items that exceed the value of a standard Homeowners Insurance policy. This is relevant even for those with more modest film memorabilia collections, especially during the holiday gift-giving season.
“If individuals are purchasing or receiving valuable pieces as gifts, making sure that they obtain insurance from the date of purchase is always best,” said Sylvia Ornelas, Associate Vice President, Director, Personal Insurance, Burns & Wilcox, Los Angeles, California. “If it is anything of value — whether silverware, jewelry, or a nice painting — it is always best to insure it separately and not expect it to be insured on your homeowner’s policy.”
Individuals may underestimate value of collections
According to Heritage Auctions, the recently sold slippers were one of four surviving pairs worn by Garland in the film; another pair sold at auction for $666,000 in 2000 before being purchased by Leonardo DiCaprio in 2012 for $2 million so that the shoes could be donated to a museum. The pair that sold this month had previously been stolen from the Judy Garland Museum in 2005 and recovered 13 years later by the FBI, the auction house noted.
Other high-value movie memorabilia items sold at auction in recent years include a Captain America shield from Avengers: Endgame that sold for $259,540 in 2021, Antique Trader reported, and an Aston Martin DB5 featured in the James Bond film Goldfinger that sold in 2022 for $2.4 million, according to Prestige.
If individuals are purchasing or receiving valuable pieces as gifts, making sure that they obtain insurance from the date of purchase is always best.
Film enthusiasts who collect memorabilia on a smaller scale may not recognize the full value in their collections, Voigt said. For example, a Star Wars fan who was given movie posters from his father as a child learned from an Antiques Roadshow appraiser that his four posters were worth $2,000 to $3,000, the U.S. Sun reported in September; another fan was told several Star Wars toys he purchased for $40 were worth $15,000.
“Individuals often underestimate the value of their collections,” she said. “They may not realize what they have in their home until they go through and take inventory. Sometimes, it is a much larger number than they would expect.”
Individuals often underestimate the value of their collections. … Sometimes, it is a much larger number than they would expect.
The best insurance solution for these items is typically a Personal Articles Floater, which is an “all-risk” policy that can cover loss due to fire, water damage, theft, mysterious disappearance and other perils. Also known as Inland Marine Insurance, these policies usually have no deductible and can offer worldwide coverage. “In terms of perils covered under the policy, it is generally a very generous and very broad policy,” Voigt said.
With this type of insurance, “unless it is specifically excluded, we are covering it,” Ornelas added. This can include coverage for high-value items while they are being loaned to a museum. “We are able to insure items at a museum for a client, as long as it is on display, loaned and not for sale,” she said.
Trends point to younger collectors, more unique items
Collections appear to be increasingly popular among young high-net-worth individuals, according to a June article by luxury lifestyle publication Robb Report. In Bank of America’s 2024 Study of Wealthy Americans, 94% of high-net-worth millennials and Gen Zers said they collected items such as watches, jewelry or wine, while 80% of Gen Xers and 57% of baby boomers said they were collectors. In a survey of high-net-worth individuals in Canada and the U.S., about 80% said they owned collections of fine art, jewelry, cars, fine wines or other valuables, according to Wealth Professional.
Movie memorabilia is a more unusual type of collection and one that usually “goes with the trends,” Ornelas said. “Whatever is in the media and in the spotlight right now, individuals tend to collect those items,” she said.
Whatever is in the media and in the spotlight right now, individuals tend to collect those items.
While individuals seem to consistently seek out insurance for traditional collections such as fine art and jewelry, there is also a steady flow of those looking for Personal Articles Floaters for more “unique, interesting collections,” such as historical documents, Voigt said. Recent reports have highlighted trends such collecting sneakers, Pokémon cards and Magic: The Gathering cards.
However, with insurance premiums on the rise and stricter underwriting guidelines in certain cases, “some individuals are trying to self-insure as much as they can,” Voigt said. “Individuals are looking at their assets and considering out of pocket expenses, both in terms of premiums paid and cost to repair or replace at the time of loss. They tend to be reaching out for coverage on the more complicated and unique schedules or higher-value items,” she said.
Beyond the potential devastation of a loss that is not covered by insurance, homeowners may not realize that purchasing a Personal Articles Floater could help them obtain Homeowners Insurance, Ornelas said. “A lot of times, homeowners have covered their fine art under Contents on their Homeowners Insurance policy. Some carriers do not prefer to cover that or increase Contents to accommodate fine arts,” she said. “If we separate the fine arts from the contents, covering them on a separate Personal Articles Floater, we can make it more appealing to the homeowner’s carrier.”
Taking steps to reduce risk
When purchasing a Personal Articles Floater, individuals should work closely with a specialized insurance broker to ensure their items are adequately protected — including coverage for items in transit. “That is a very important exposure to discuss,” Voigt said.
The broker can also advise collectors on what appraisals and valuations may be needed for their items and how often these should be repeated. When a new item is acquired, a plan should be in place for where and how it will be stored or displayed. The insurance broker may also have questions about the risk mitigation strategies in place to protect the item.
“Where the item is displayed is of important significance,” she said. “If it is artwork that is on loan at a museum, we would need those full details as well — how long it is going to be there, and what the protections are at that location. That is an important part of understanding the risk and obtaining the right insurance coverage.”
Whether ruby slippers or a large painting, “we definitely want to know how the item will be protected and how it will be displayed,” Ornelas agreed. “Any type of protection information is good to know and will help us tell the story to our carrier so they can feel more comfortable insuring these items.”
