Inquiry About Property Claims on Collectibles
I’m seeking advice regarding a property claim related to collectibles. Can someone explain why collectible items that typically appreciate over time are still categorized as “depreciated”? I have a large collection of vintage video games (around 20-30 years old), and my insurance company is automatically applying a 50% depreciation to them.
I’m worried that if I provide them with the purchase dates, their system will further reduce their estimated value. For example, I own a copy of Little Samson for NES, which is valued at $1,800, yet they’ve discounted it by 50%, stating it’s only worth $900. How should I address this issue with the insurance agent? This approach seems unreasonable and feels almost like a scam. It’s hard to understand how a business can operate in this way. Any guidance would be appreciated!
It sounds really frustrating to deal with an insurance company that doesn’t seem to acknowledge the unique nature of collectible items. Many standard policies treat collectibles differently, often using a depreciation model that doesn’t accurately reflect the market value. Here are a few steps you can take when speaking with your insurance agent:
Document Your Items: Gather evidence of the current market value of your collectibles. This can include recent sales data, appraisals from reputable sources, or listings on websites where similar items are sold. For example, you can find sold listings for “Little Samson” on auction sites to show current value.
Review Your Policy: Check your insurance policy to see how it addresses collectibles. Some policies may have specific provisions for collectibles, antiques, or items of significant value, potentially allowing for less depreciation.
Communicate Your Concerns: When you contact the insurance agent, explain your concerns clearly. Let them know that collectibles often appreciate in value and that the standard depreciation model doesn’t apply to items like yours. Be specific about the examples you’ve provided.
Negotiate: If the agent doesn’t seem willing to consider your evidence, ask about the appeals process. You may also want to request a reassessment based on the data you’ve gathered regarding the current value of your items.
Consider Specialty Insurance: If you find it difficult to navigate this situation, consider looking into insurance companies that specialize in collectible items. They may have a better understanding of how to value collectibles without applying standard depreciation models.
Seek Legal Advice: If you feel that the insurance company is being unreasonable, you may want to consult with a legal professional, especially if the potential claim amount is significant.
Remember to keep all communication professional and document everything for your records. Good luck!