Determining Collection Value for Insurance

BarryLee · April 1, 2013, 04:15 PM

I just received a letter from my Insurance Company asking me to review my Homeowners Policy and see if the coverage is a still adequate. The thing that came to mind is the possibility of adding additional coverage for my firearms collection or as the Media would say, my arsenal.

It seems there are three prices one could use to determine collection value: the original purchase price, replacement cost and Blue Book value. So, for those with previous experience which number is the insurance company going to use?

dakota.potts · April 1, 2013, 04:27 PM

I would think for the cost of insurance you would be looking at replacement cost since that's their goal, but I'm not absolutely sure

Evan Thomas · April 1, 2013, 04:42 PM

You need to determine whether your policy is written to reimburse you for the replacement value of your personal property. Some are, some aren't. The easiest thing would be to ask your insurance agent.

BigD_in_FL · April 1, 2013, 05:04 PM

The major issue for me and others, is that a lot of my guns are no longer in production -so going by used vales or by selling/getting values can be a very wide margin

Example - I have a Browning Gti O/U - sold for 1200 new, bought it for 1000 on closeout, they currently sell for $1400 -what is the insurance company going to give me?

Once I determine THAT, then I can set values for insurance purposes. I know that MY homeowner's has told me that self-insurance via a safe was cheaper than adding a rider

BUT there is a company, called Collectibles, Inc, who insure ANY type of collection - cars, stamps, guns, etc. where $25K of guns, assuming you have a safe, will run you about 200 per year

kilimanjaro · April 2, 2013, 01:22 AM

You want extended replacement value. When I first got my policy, I figured $500 for each firearm, then doubled that number for the policy amount, should cover the Mosin-Nagants with no problem, and the other stuff should come out alright. Later on I checked each firearm on Gunbroker, came up with a number to put on the inventory spreadsheet, it totalled up to a bit more, so I increased the coverage the next year.

Patriot86 · April 2, 2013, 08:11 AM

I use Allstate, after talking to my agent he told me that the only way I could be sure to get full value of the firearms back was with an appraisal. Best to talk to someone who knows what they are talking about with your insurance agency, it took me three tries to finally get ahold of someone who knew what I was talking about.

redhologram · April 2, 2013, 08:47 AM

Quote:

I use Allstate, after talking to my agent he told me that the only way I could be sure to get full value of the firearms back was with an appraisal. Best to talk to someone who knows what they are talking about with your insurance agency

I would go this route. I have USAA. While I don't have a rider for firearms, I have additional riders for art and jewelry. I had to submit pictures, appraisals, receipts, etc documenting the value of the items.
I would definitely talk to someone within your insurance agency. I would rather err on the side of being over-insured than under-insured.

Patriot86 · April 2, 2013, 09:26 AM

@ Red: I actually decided for the little bit of extra money each year to just get dedicated firearms insurance. The guys at Allstate did not fill me with confidence. The first time I called they needed to "talk to someone special at corporate but he is on vacation"....the second time I called the guy I talked to had no freaking clue what the first guy was talking about , but couldn't help me and I gave up after 20 mins of going round and round...the third time I called I got someone who knew what he was talking about....I can't imagine having to deal with that if I actually needed to file a claim.

For $100.00 a year or so for an average (Sub 10K) collection you can pretty much have your firearms totally covered, it is a good idea though to keep copies of the bills of sale etc in some kind of a safety deposite box. As a quirk I keep pictures of all my guns and serial numbers incase they are ever stolen.

redhologram · April 2, 2013, 09:38 AM

@Patriot ~ that much run around would make me wary as well. Sounds like you found a good alternative.

April 1, 2013, 04:15 PM	#1
BarryLee Senior Member Join Date: July 29, 2010 Location: The ATL (OTP) Posts: 3,946	Determining Collection Value for Insurance I just received a letter from my Insurance Company asking me to review my Homeowners Policy and see if the coverage is a still adequate. The thing that came to mind is the possibility of adding additional coverage for my firearms collection or as the Media would say, my arsenal. It seems there are three prices one could use to determine collection value: the original purchase price, replacement cost and Blue Book value. So, for those with previous experience which number is the insurance company going to use? __________________ A major source of objection to a free economy is precisely that it ... gives people what they want instead of what a particular group thinks they ought to want. Underlying most arguments against the free market is a lack of belief in freedom itself. - Milton Friedman

April 1, 2013, 04:42 PM	#3
Evan Thomas Senior Member Join Date: July 7, 2008 Location: Upper midwest Posts: 5,631	You need to determine whether your policy is written to reimburse you for the replacement value of your personal property. Some are, some aren't. The easiest thing would be to ask your insurance agent. __________________ Never let anything mechanical know you're in a hurry.

April 2, 2013, 08:11 AM	#6
Patriot86 Senior Member Join Date: December 23, 2010 Location: Chicagoland Posts: 1,293	I use Allstate, after talking to my agent he told me that the only way I could be sure to get full value of the firearms back was with an appraisal. Best to talk to someone who knows what they are talking about with your insurance agency, it took me three tries to finally get ahold of someone who knew what I was talking about. __________________ "....The swords of others will set you your limits".

April 2, 2013, 09:26 AM	#8
Patriot86 Senior Member Join Date: December 23, 2010 Location: Chicagoland Posts: 1,293	@ Red: I actually decided for the little bit of extra money each year to just get dedicated firearms insurance. The guys at Allstate did not fill me with confidence. The first time I called they needed to "talk to someone special at corporate but he is on vacation"....the second time I called the guy I talked to had no freaking clue what the first guy was talking about , but couldn't help me and I gave up after 20 mins of going round and round...the third time I called I got someone who knew what he was talking about....I can't imagine having to deal with that if I actually needed to file a claim. For $100.00 a year or so for an average (Sub 10K) collection you can pretty much have your firearms totally covered, it is a good idea though to keep copies of the bills of sale etc in some kind of a safety deposite box. As a quirk I keep pictures of all my guns and serial numbers incase they are ever stolen. __________________ "....The swords of others will set you your limits".

April 1, 2013, 04:27 PM	#2
dakota.potts Senior Member Join Date: February 25, 2013 Location: Keystone Heights, Florida Posts: 3,084	I would think for the cost of insurance you would be looking at replacement cost since that's their goal, but I'm not absolutely sure

April 1, 2013, 05:04 PM	#4
BigD_in_FL Junior member Join Date: December 20, 2012 Location: The "Gunshine State" Posts: 1,981	The major issue for me and others, is that a lot of my guns are no longer in production -so going by used vales or by selling/getting values can be a very wide margin Example - I have a Browning Gti O/U - sold for 1200 new, bought it for 1000 on closeout, they currently sell for $1400 -what is the insurance company going to give me? Once I determine THAT, then I can set values for insurance purposes. I know that MY homeowner's has told me that self-insurance via a safe was cheaper than adding a rider BUT there is a company, called Collectibles, Inc, who insure ANY type of collection - cars, stamps, guns, etc. where $25K of guns, assuming you have a safe, will run you about 200 per year

April 2, 2013, 01:22 AM	#5
kilimanjaro Senior Member Join Date: November 23, 2009 Posts: 3,963	You want extended replacement value. When I first got my policy, I figured $500 for each firearm, then doubled that number for the policy amount, should cover the Mosin-Nagants with no problem, and the other stuff should come out alright. Later on I checked each firearm on Gunbroker, came up with a number to put on the inventory spreadsheet, it totalled up to a bit more, so I increased the coverage the next year.

April 2, 2013, 09:38 AM	#9
redhologram Senior Member Join Date: January 14, 2013 Posts: 352	@Patriot ~ that much run around would make me wary as well. Sounds like you found a good alternative.