[78-L] Collectors Insurance

[Cary Ginell]

I think what they are looking for is replacement value - not what you spent on it. The problem is verification of value. Prices are all across the board. Something might sell on eBay for outrageous prices only because two bidders get into the heat of a bidding war, sending the value of a record skyrocketing. You can search for "completed items" and find selling prices for anything on eBay, and even searching for multiple instances of sales of the same item show wildly diverging results. For retail items, like televisions, cameras, etc. results are often in the ballpark of one another, but for collectibles, it all depends on the moment.

So where does this leave us? I think that an insurance organization like Collectibles Insurance Services understands the volatility of the price of collectibles and will accept "reasonable" estimates of an item's value. I have estimated that any average 78 that does not have any extraordinary collector's value is probably worth around three dollars in E condition. I don't even think anyone can argue that the most common red Columbia or even copy of "Near You" by Francis Craig on Bullet is worth any more or less than three bucks if it's in excellent condition. Given that, you go from there - adjusting for scarcity, demand because of historical value, lyric content, significance of the musicians, label scarcity, catalog number, or past sales. I would put a premium is placed on an item that is autographed by a performer. I just went through my collection of Roy Acuff 78s and valued them as anywhere from $2 for red Columbias in V+ condition to $50 for the scarcer ARC issues in E+ condition. I don't think anyone would find these kinds of estimates unreasonable, either devalued or inflated. With extremely valuable or scarce items, you may want to pay an appraiser to evaluate the record's value and even insure them separately (anything over $1,000, for example). I don't have many items worth that much, but with a few, I might certainly want to get a letter estimating its value from a recognized expert, such as Kurt, for example.

It's harder for record collectors than collectors of other items because it is relatively easy to accumulate a collection of thousands of items, unlike gun collectors, car collectors, or antique bone china. So, corralling everything and plowing through them one at a time, is what is most difficult. I hope to be able to do it systematically, taking 20-30 at a time and doing it over the course of a year or so. 

Cary Ginell



On Dec 16, 2012, at 7:17 AM, neechevoneeznayou at gmail.com wrote:

> It could vary. I've seen some prices on ebay that are quite a bit lower 
> now than what they have been in the past.
> 
> joe salerno
> 
> On 12/15/2012 7:01 PM, Ray wrote:
>> Serious questions, do you estimate your collection at what you may have paid
>> for it, or what you think it's worth now, or what you realistically would be
>> able to get for it?  And if the latter, how do you determine what that
>> estimate would be?
>> RayK
>>> 
>>> 
>> From: Cary Ginell
>> Just ran an online estimate with Collectibles Insurance Services, Inc., the
>> company that doesn't require an itemized list of your collectibles. You
>> apply for a certain amount and describe the collection in the policy. For
>> $100,000 in coverage, the cost is about $600 per year. For $150,000, it's
>> $693, and for $250,000, it's $876. Of course there are other parameters, but
>> this gives you a rough estimate of the cost.
>> 
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> 
> -- 
> Joe Salerno
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