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"Fair Market Value" For Insurance Application

 
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Posted 09/18/2019   1:16 pm  Show Profile Bookmark this reply Add rogdcam to your friends list  Get a Link to this Reply
Hugh Wood seems to be the name that keeps popping up but after doing some research I was surprised to find at least three other companies that have a long history of providing stamp collection insurance. It may pay to look into each of them although Wood seems to have a good reputation. I have started reaching out to those companies and will share my findings for those that are interested.
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Posted 09/18/2019   2:39 pm  Show Profile Bookmark this reply Add Walkman82 to your friends list  Get a Link to this Reply
rogdcam,

I am interested in learning more...please PM or email your findings. Thanks!


Scott
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Posted 09/19/2019   1:21 pm  Show Profile Bookmark this reply Add Climber Steve to your friends list  Get a Link to this Reply
To "piggyback" on Walkman82's question about "how can the FMV or replacement value be determined......." for items bought in the distant past? As an example, I've been working on the Italian part of my slowly downsizing world wide collections. I have short sets of all the Italian Aegean Islands sets from the 1920s that were part of a worldwide collection that I bought in 1982. A receipt for that collection; assuming that I had one, which I don't; wouldn't help.

In terms of replacement costs, except for really unique stuff like discussed by Walkman82, it may not be as pricy as one might think. The current issue of Dr. Bob Friedman's sales flyer, that I received on Sept. 10, has US collections for sale at 17% of catalog, with all items described as being sound stamps. One is: "Mint 1851-1940 (US) collection with a catalog value of $84,000." Asking price is $13,995. Also advertised is "$48,000 catalog value of sound used 1847-1940 stamps with no duplication." The ask is $7,995.

I'll note that I've insured my collections; the ones now gone, to be gone, and to be retained; with Wood for years.
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Edited by Climber Steve - 09/19/2019 1:25 pm
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Posted 09/20/2019   2:34 pm  Show Profile Bookmark this reply Add BFRomeos to your friends list  Get a Link to this Reply
So... I utilized the contact email provided on Hugh Wood Inc.'s website on Sep 14. No response. Called them today; they could not track down the email. No worries; the same phone call became the medium for inquiry. My take-away:

- Purchase receipts are an acceptable basis for valuation
- My $4,000 collection imputes to a $25/year premium
- For perspective, a $100,000 collection requires a $290 premium.

They're sending me an electronic application template, and off we go.


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Posted 09/20/2019   5:11 pm  Show Profile Bookmark this reply Add rogdcam to your friends list  Get a Link to this Reply
I just went with Wood myself. The others were not very responsive. I spoke with Courtney and it was easy and pleasant.
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Posted 09/21/2019   12:20 am  Show Profile Bookmark this reply Add Stampman2002 to your friends list  Get a Link to this Reply
I am insured through Collectibles Insurance, a competitor to HW.

When I first asked about insurance, they asked how much I wanted to insure the collection for. When I said I wasn't certain, the agent asked how much the collection was valued at. I made a wild guess and said $20,000. That was what I started with for insurance.

The agent next suggested I start a detailed inventory of the collection because after describing it to her, she felt I might be underinsured. So, I started a spreadsheet, entering each stamp and then scanning an image of it, along with any documentation or certificates I might have. I've been steadily working at this inventory now for a decade. I'm probably about 70% through the collection.

I highly recommend doing this for your collection. First, it forces you to look at every stamp, cover, piece or artifact in your collection again. You'll have to determine the value of it, so you'll be researching the catalogs as well. Secondly, most collectors really don't know how much their collections are worth. I didn't I valued the collection for insurance at about 1/25th of what it was actually worth. For now, this has been straight catalog value. I'll have to go back and adjust it for SMQ where the stamps are graded when I'm done with the basic inventory.

Keep records of where you purchased your stamps (i.e., receipts, invoices, etc.) so you can establish the price paid. My understanding is that claims on stamps will be paid for Fair Market Value of what you can PROVE you have. A highly detailed inventory such as mine is going to make any claim for loss rather easy.

Is it time consuming? Yes, it is. Is it worth the effort? I really think it is. You will have to make the decision yourselves, as everyone's situation is different.

For anyone just starting out or just returning after a long hiatus, start keeping records now as you build your collection. Per stamp, entering it into your database, scanning and putting it into the collection is a matter of a couple minutes per stamp. If you keep it up as you go, you've got the collection documented.

A collateral benefit of this type of inventory is that when I consider a purchase, I can go right to the images of the stamps I have and determine whether I needs a particular issue, whether the stamp I'm looking at is an upgrade or whether it already resides in the collection in comparable condition.
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Posted 09/21/2019   08:32 am  Show Profile Check revenuecollector's eBay Listings Bookmark this reply Add revenuecollector to your friends list  Get a Link to this Reply
Also, while it's probably obvious, given our older demographic this probably bears repeating: make sure that your documentation is stored in the cloud, not just on physical paper or files on your home computer. If your house burns down and that's where your receipts and documentation were stored, that's really not going to help you with your insurance claim.
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Posted 09/21/2019   09:00 am  Show Profile Bookmark this reply Add rogdcam to your friends list  Get a Link to this Reply
Paper, thumb drive and cloud.
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Posted 09/21/2019   10:21 pm  Show Profile Check 91stang's eBay Listings Bookmark this reply Add 91stang to your friends list  Get a Link to this Reply
so then, My $5,000.00 collection should cost $26.00/year?
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Posted 09/22/2019   05:54 am  Show Profile Bookmark this reply Add angore to your friends list  Get a Link to this Reply
The rate also depends on if you have a monitored alarm. You do not need to catalog modern some modern material carefully. For example, if you have a US mint collection post 1930 the value or just take face multiple by 2 to get catalog value.
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Al
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Posted 09/23/2019   11:26 pm  Show Profile Bookmark this reply Add Stampman2002 to your friends list  Get a Link to this Reply
I'd caution against just a face X 2 on modern US material. If you go through the U.S Specialized, you'll find many modern issues which are beginning to appreciate at a rather significant rate. For instance, the Jazz Singer/Blues Singers 29 cent issue for a pane of 35 has a face value of $10.15 but a catalog value of $55.00.

For anything after the 10 cent era which is priced in the catalog at double face, you're correct. You'll be surprised how many issues are above that, though.

Take the time to figure out which issues have appreciated before just assigning a double face value to the collection's valuation.
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Posted 10/12/2019   12:05 pm  Show Profile Check matttodd1's eBay Listings Bookmark this reply Add matttodd1 to your friends list  Get a Link to this Reply

Quote:
I am about to insure my collection with Wood and I am sooo happy that I took the time to organize my documentation. Excel sheet with each Scott number, cert number(s), special notes, centering, grades where applicable, SMQ and Catalog value all in catalog sequence. Folders of scanned receipts, scanned certs and photos of every stamp. All constantly backed up on external drives and a cloud. Finally, cert and invoice hard copies in binders. I am ready. Now I pray that I will never need it for a loss but rather when and if I sell or for my heirs.


I have done essentially the same thing, and have it insured with Hugh Wood too. Hope I never have to make a claim, but if I ever do, I'm hoping everything goes smoothly

Matt
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Edited by matttodd1 - 10/12/2019 12:07 pm
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