Question About Property Claims and Collectibles
Has anyone else encountered issues with collectible items being considered “depreciated” despite their increasing value? I have a significant collection of vintage video games (20-30 years old), and my insurance company is automatically applying a 50% depreciation to them. I worry that if I provide the purchase dates, they might depreciate them even further, as their valuation process seems illogical. For instance, I own a copy of Little Samson for NES, valued at $1,800, but they’ve assessed it at only $900 due to the 50% depreciation. How should I approach this with the insurance agent? This process feels backwards and quite unfair, almost like a scam. Any advice?
It’s definitely frustrating to deal with insurance companies, especially when it comes to valuing collectibles. Here are a few points you might consider discussing with the insurance agent:
Understand the Policy Terms: First, review your policy to see how they define collectibles and whether they mention depreciation. Some policies may have specific clauses regarding unique items or collectibles, and it’s important to know what your coverage includes.
Request a Reassessment: Politely insist on a reassessment of your collectibles. Provide evidence of their current market value, such as sales records, appraisals, or listings from reputable auction sites. Many collectibles increase in value significantly over time, which could justify arguing against their standard depreciation rates.
Document Value and Rarity: Stress the rarity and condition of your items, especially for highly sought-after games like Little Samson. Evidence of recent sales for similar items could strengthen your case.
Clarify Depreciation Methodology: Ask the agent to explain their depreciation methodology and why it seems inconsistent with the current market trends for collectibles. It’s okay to express your concern and ask for transparency in how they determine these values.
Consider Seeking Expert Appraisal: If the issue persists, you might want to consider hiring a professional appraiser who specializes in collectibles. This could provide you with an official assessment to present to the insurance company.
Escalate if Necessary: If you feel that your concerns are not being adequately addressed, consider escalating the issue to a supervisor or filing a formal complaint.
Look into Alternative Coverage: Going forward, you might want to consider specialized insurance for collectibles that takes into account their appreciating value rather than depreciating assets, ensuring you’re better protected in the future.
You’re right to advocate for the value of your collection—it’s worth standing up for what you believe is fair!