chartreuse

One for the firearms collectors among us - we may be under insured.

I was at the insurance agency, yesterday, and I finally got round to asking whether there were any restrictions on our homeowners policy about firearms. Turns out we're only covered for a couple of grand and the excess would wipe most of that out.

I asked about an umbrella policy and was given an example of $6000 cover for $120 a year. But they would need an itemized list, with serial numbers, receipts and an official appraisal. So I said, "Yeah, I'd heard that State Farm was anti gun-owners..."

Now, the NRA endorses a policy which works out at $97 for $6000 (or $132 for $8000, $166 for $10,000 etc.). But it specifically excludes ammo and I like to keep a decent stock.

So I kept looking and found a firm called Collectibles Insurance, who insure collections, including gun collections. Their prices work out at $49 for $6000 (or $60 for $8000, $71 for $10,000 etc.) It's replacement cover and they cover ammo.

Neither of the last two need an appraisal or serial numbers, though they both encourage you to keep an inventory.

I'm going to go with the last one, mainly for the ammo coverage, though the price is a bonus.

What cover do you have?

Duncan Roberts

This is regarding insurance in general but would apply to guns. Having an appraisal is very, very useful because if something does happen then you can use it to get the right amount of money back. If you don't you can run the risk of the insurance company deciding how much the item was worth, which you can bet will be lower than you want. In that respect, State Farm may be doing you a favor with their requirements since you would be able to put up a pretty good case if they jipped you on a payout.

chartreuse

Fair argument, but then you get into whether the cover is Agreed Value, Replacement Cost or Actual Cash Value.

I'm getting Replacement Cost cover and if they can find, e.g. the exact same 1911 A1 for less that I paid for it, I don't care so long as I get the gun.

What you're referring to sounds like an Actual Cash Value policy and there you're exactly right. In fact, it's even worse than you suggest, because (according to my mate who's an independent adjuster) insurance companies tend to way over-depreciate firearms.

meauxna

I was always told they have to be scheduled, but I'm with State Farm.

Duncan Roberts

Yeah, I just don't trust insurance companies. Their valuations don't usually agree with mine and neither does their definition of an "acceptable replacement."

chartreuse

State Farm have form for this. Some years back they turned over a guy in SC, for having the temerity to shoot on his own land...

Me either. That's why I document everything and have my buddy, the independent adjuster, in reserve.

Bill_S

We have Nationwide, and the last time I spoke to our agent he said IIRC that firearms are like other property. I'll have to revisit this, though.

anotherlimey

I think that's a general item limit. It's the same for jewelry isn't it?

Macca67

I thought your firearms were the insurance?

chartreuse

You should. What prompted me to look at this was a comment from an adjuster, to the effect of "Yeah, well, insurance agents are salesmen not underwriters and will say any old thing"...

Having looked into it, I believe so. Or any collection of valuable items. I wonder if I could get shafted on account of having several thousand books?

Well, they're not much good at putting out house fires...

Macca67

Depends who started the fire.

anotherlimey

We had to list my wife's engagement ring because of the limit. State Farm would only pay $3000 or something (not that the ring is worth that much more!).

chartreuse

Yes, items over a certain value have to be scheduled, that's the norm. I was idly wondering whether they might class multiple items (e.g books, tools, furniture) as a "collection" in order to get out of paying.

Bob

Aye, bit cheeky, our renters insurance is for x amount of dollars, but per single item max of $2K so we got extra added for our marriage rings because I'm not getting gipped on the amount of platinum we've got.

Dan725

We have coverage on the homeowners, but as you say there is a cap (I think its $2,500). Not everyone has a big giant collection like you, mate!

Interesting to hear about that second policy though, it sounds very reasonable.