Question about Property Claims and Collectibles
Can anyone explain why collectible items, which often appreciate in value over time, are treated as “depreciating” assets? I have a substantial collection of vintage video games (20-30 years old), and my insurance company is automatically applying a 50% depreciation rate. They’re asking for purchase dates, but I’m concerned that providing this information will lead to even further depreciation under their system, which seems illogical. For instance, I own a copy of Little Samson for NES, currently valued at $1,800, but they’ve marked it down to $900 based on their depreciation policy. How should I address this with the insurance agent? This process feels unfair and almost like a scam—it doesn’t seem right for a business to operate this way.
It sounds frustrating to deal with the insurance claim process, especially when it comes to collectibles that appreciate in value over time. Here are some thoughts and suggestions for addressing your concerns with the insurance agent:
Value vs. Depreciation: Emphasize that collectible items, like your video games, can appreciate significantly in value due to their rarity and demand, contrary to standard depreciation. Explain that industry standards for collectibles often consider factors like market trends and rarity, which should have a greater influence on valuation than a blanket depreciation policy.
Documentation: Have your documentation ready, including recent appraisals, market comparison prices, and sales of similar items. You can present these to back up your claim and demonstrate the true value of your items.
Request a Re-evaluation: Politely ask the agent to reconsider the valuation based on the current market. You can express that the blanket 50% depreciation doesn’t reflect the actual value of your specific collectibles, like the copy of Little Samson. Pointing out that its rarity and demand strongly contribute to its current value could help make your case.
Clarify Their Policy: Inquire about the specific criteria they use to determine depreciation. A good insurance company should be transparent about their processes, and if they have a one-size-fits-all approach for collectibles, it’s reasonable to question its fairness.
Escalate the Issue: If you’re not satisfied with the response you receive, ask to speak with a supervisor or a claims adjuster who specializes in collectibles. Sometimes, escalating the matter can lead to a better understanding of the situation and a fairer outcome.
Seek External Advice: If the situation doesn’t improve, consider seeking advice from a professional appraiser or a legal expert specializing in insurance claims. They might be able to provide guidance specific to your situation or help you advocate for a more accurate valuation.
Remember, remaining calm and professional while expressing your concerns can go a long way in these discussions. Good luck!