Insurance valuations via eBay?

It struck me the other day that if a Tiki mug got broken at home, it would probably fall under the house insurance policy. However, if it was of any value, the insurance company would take one look at the value put down and say, 'Yeah right, that must be worth $2'.

My question therefore is whether or not insurance companies will take e-Bay auction results as proof of value. Is it worth keeping a hard copy of auction results for mugs you have just in case the worst happens?

Trader Woody

That..my good friend is a valid question. I asked nationwide Insurance, where I get my renters insurance if my mugs would be covered at their fair market value or what I paid for them. If you got a smoking deal on eBay, and then the mug was broke or heaven forbid stolen, how would you replace it? They are supposed to get back to me on monday, I will let you know what they say.

I imagine it depends on your insurance company. I do believe that most do indeed take eBay auctions as proof of fair market value. eBay auctions should work to determine fair market value for almost anything (art, mid century antiques, carvings, etc.). In the case of art (and some other collectables) I have found that visiting an art gallery may be benificial to the valuation.

It seems to me like eBay may become THE source for determining fair market value. It's only a matter of time until the charge for this service (searching).

I talked to my insurance company and they said that the usual policy is to have your collection "appraised" by an accredited "appraiser"

so.. i suppose the trick is the convince the appraiser what they are worth, most likely through ebay prices, and then have him sign off on it. If you get a guy who just wants his check he'd probably OK anything, yknow?

Not to mention that your insurance will probably go up if you have a significant amount of extra "valueables" youre trying to tack on. ie: insuring the wife's ring requires a rider, etc

[ Edited by: fatuhiva on 2004-02-17 21:58 ]

Each insurance company is different.

First review your policy with your agent to determine whether or not there are any exclusions on your existing Primary home policy covering "valuable" items where a price cannot be immediately determined by any claims adjuster (ie: your house goes up in flames. A price for your Sony 60" big screen can be obtained with a phone call but that $1500+ Moai tiki mosaic artwork above your Witco bar that held your complete set of Steve Crane mugs cannot.)

Your "valuable" tiki items (I'm talking high dollar pieces, not your $10/$15 mugs) may fall into a special "collectibles" category from your insurance agency. In which case, a "rider" would need to be written. (A rider provides additional coverage for something specifically not covered by your Primary policy. The rider is added to the Primary policy and the policyholder pays an extra amount to cover the rider.) Most likely (as I have done) a rider is most likely needed.

Whether or not you have to add a rider, in all cases you really should take a picture or even videotape your belongings. Keep a copy for yourself in a safe place away from your home (like a safety deposit box at your bank) and send one to your agent (either hand deliver or send in the mail by return receipt to prove they "accepted" it.)

If a rider is written, BE SPECIFIC as to what is covered. Write down specifically what you want covered along with it's current value at the time the policy/rider is written. Again I will use the Moai Tiki mosaic picture as an example: Let's say you do have a policy/rider in place from 5 years ago and the Moai mosaic picture was listed specifically at a $400 value. You cannot replace that mosaic easily, but when they do come up for sale NOW (yes, usually on ebay) they have been no less that $1200 to $1400+ in price. Ok, so now an earthquake hits and your picture tumbles and shatters to the ground. You call your insurance agent to make a claim for all your items that broke, including that mosaic, and you get paid. Can you guess what you'll get paid? Noooooo, not $1400 (even though you have the latest ebay auction proof that some other picture sold for that), you'll get $400 (less your deductible on your claim), because that is what you specifically said it was worth at the time the policy was written and that is what you have been paying to have it insured for. So be sure to update your policy/rider yearly if necessary. Although, if your insurance company requires that an appraiser must submit the value, you have to know that you, again, have to repay the appraiser to come out to reevaluate your items. The more detail you can supply to your insurance company for value, the better for you. Just remember that you will be paying that premium for those prize possessions.

Talk to your agent. That is what they are there for. Part of that insurance money you pay for every month (or quarterly) is for paying them to be at your disposal for questions or concerns.

Just my 2 (insured) coconuts worth.

Enter The SoCal Hoity Toity Schedule

[ Edited by: SugarCaddyDaddy on 2004-02-18 11:06 ]