Trying to get insurance (coin collection)

capuchin

So I've been looking for contents insurance for my flat (around £30,000 total) and my coin collection (around £50,000 total)

After running around in circles for a week by the usual chancers who can insure everything until they actually see the details and then say no with a blank face, I seem to have found a couple of brokers who are working with me. Both brokers have been taking me in rather different directions, though the prices seem around the same (£500-700/year)

The question is coming up how I value these though. Both insurers have not asked for a valuation, and say they'll simply pay 'fair market value' in the event of a claim. What's fair market value on an item that only comes on the market every 5 years or more though? Is this simply a way for them to underpay? One of the insurers has said that they would accept a valuation from Spink and allow me to insure for an 'as stated' amount. Does this simply mean they'll accept my valuation as the insured sum?

So which of these endorsements are normal/reasionable, and which should I be looking to avoid? [Broker 1]

- A full listed inventory and condition of every coin (over 1000)

- A NACOSS alarm system (seems ridiculous)

- Safes with cash ratings from £5000-£8000. (very expensive considering the sheer size I'd need)

The 2nd broker has gone in a different direction - the cost is closer to £700 than £500 but the only endorsement is Smoke Alarms in every room. And they don't need an itemised list.

I'm able to contact both brokers during business hours and ask underwriters immediate questions if needed.

I guess my questions are:

- Are the prices reasonable?

- Should I pay for my own insurance valuation (around £600 cost) and insure on that basis?

- Which endorsements are reasonable?

- Any red flags or other advice?

Thanks.

Edit: Just to note both policies are 'All risk' but Broker1 is only offering it in the home, whilst broker2 is offering worldwide cover.

TELLIT01

No it does not mean they will accept your valuation, but they will accept a valuation from a specialist valuer.  £600 for an insurance valuation sounds like good value for a collection with a value of £50k.  With that, you could go to broker 2 and request cover in accordance with the insurance valuation. 'Market Value' needs to be more clearly defined as to many insurers that term means the price if sold, which is often much lower than the purchase price.

capuchin

By 'My valuation' - I mean the valuation obtained via Spink. (Valuing these things is more of a cooperative effort than simply a company giving you a random number )

Sounds like a good plan though thanks. I feel broker2 is more of what I need, pending their accepting of my valuation as opposed to their own 'fair market value.' - As the price to purchase would often be hiring a company to search, then simply outbidding whichever billionaire decides to bid on it when it does appear in the year 2028.

One thing the guy at Spink did say, is different clients approach their valuations in different ways. Some simply want a nice financial nest egg in the event of catastrophe as it's pretty much gone/irreplaceable at that point. (So they value at 'purchase value+30% or so) Others want to go the full hog as above and value at close to 2x or even 3x. Once you have a specialist valuation, do the insurers simply accept that in the event of disaster, or do they attempt to fight later?

theoretica

I don't know about coins, but expensive violins typically need a professional (paid for) valuation to be insured for more than the purchase price. Replacement as new is also available for modern instruments of known make and model. But that valuation is agreed and is what is paid out.  As you are discovering, a higher valuation can lead to higher insurance costs, and more security requirements...  And any pay out would presumably depend on good evidence that you had owned what you are claiming for - receipts and market changes since, or valuations, or grading certificates, or really good photographs for the cheaper items.  But I suspect you are caught in a bit of a middle ground - £50k for coins isn't actually that much on the scale of specialist insurance (compared to say, old master paintings) but any gold coin is automatically a high theft risk.

If you have a collection of 1000 coins worth £50k total that is an average of £50 each - which isn't really in the realms of needing a specialist valuation.  It might be worth separating your collection into categories and considering individually any coin you expect to value over £1000 or so.

RL11

I don't have a huge value of coins but they are all individual coins and to buy them all again would cost circa £5k.
I have put "coin collection" as a specified item with £5k cover but the insurance document has come back with an endorsement as follows:

"Your insurer will only pay up to 65% of the Spink & Son current valuation in respect of any coins (forming part of a collection) that are lost or damaged.
Your insurer will not pay for any loose individual unmounted coins.
Your insurer will not pay for any loss or damage to your coins (forming part of a collection) unless the collection is kept in a locked drawer, cabinet or safe."

This would suggest to me
1. The maximum payout I could ever receive would be £3,250 (65%), even though I've requested £5k cover.
2. I'm not covered anyway, as all of the coins are "unmounted".
3. Even if they are put in a safe, I'm not covered because of 2!

I have jewellery of a similar value and it's covered at home and away from home with no endorsements at all!

I've contacted the insurer for clarification but surely coin cover can't be that daft?!