protecting our investments

[The Modeling Hermit]

We place hours of work into our models, making them our own works of art, and we invest large sums of money into quality tools, models, and displays.

How are they protected? Are they insured? Have you checked your insurance policy to see what's covered, and if so, what limitations does your company place on them? Are you insured for replacement value, or just what they think your "toy" is worth?

Most of us don't keep receipts, and even if we did, they'd be value outdated within a couple of years. So how do we prove the value, and especially the replacement value of the items of our models? How do we place a monetary value on the work that we've done on them?

Do you have pictures of your models, with descriptions on each one explaining the size, what's shown, amount of work and money that's gone into it, and have you done that for individual displays, and items included in those displays?

You're dealing with insurance companies that are going to try to get out of paying in every way that they can. The only way that you'll come anywhere close to being reimbursed, is to have proof; substantial proof. Be sure that proof is kept in a safe place, and it's best to have several copies, and keep them in different places.

There are some things that you can do on your own to personally protect your models. Have a lockable door on your model room and displays. If possible, install an automatic closer on the room door. Keep display areas clear of clutter. Keep a record of your models, and include in it an updated value for each model. Inventory your tools and supplies, and keep it updated.

I'm not attempting to instill a air of doom here, but these are some things that we need to be aware of. I'm hoping that there are some people on the board that are familiar with insurance, and can give some insight on the best ways to work with companies.

[Dr. Cranky]

I think this is a wonderful topic for discussion, and it's been a struggle most of these last 10 years to keep the models clean and safe and out of the wrong hands. My workshop has a lock and I am the only one who can enter. Although I don't believe in buying insurance, I do make sure that most of my collection is scattered between the two places I live in. If one place goes up in flames, the other will hold half of my collection. Seriously, it's a form of insurance.

[Harry P.]

The problem is, no matter how carefully you document everything, and even if you do manage to find an insurance company who will agree to insure your models, you know what'll happen: Once you make a claim, watch your rates zoom upward! They don't ever want to lose money on a claim... for every claim they pay out somebody gets their rate jacked up to cover the payout, and then some.

The insurance industry is one of those "can't lose" businesses.

[Dr. Cranky]

That's very true, Harry . . . I think the best we can hope for is to take care of our models because we enjoy them and have put a lot of time and love into them, but eventually we have to let go . . .

Of course, I keep playing the LOTTO and if I win I will open a MODEL MUSEUM, and then nobody will have to worry about their models. They'll be safe in my museum!

[JamesW]

Insurance companies aroundhere allow you to choose your own policy. At one point I had $150,000 replacement coverage on a SMALL 1958 mobile home. That covered replacement cost for EVRYTHING inside plus have close to $75,000 left over.

[Nova-ss]

Protect yourself against the insurance company to,cause they will try to devalue everthing thing they can and will not care about you.my experence with insurance company is long and not good...becarefull and dot your eyes.thanks,Chris

[CAL]

from experience in the insurance biz

You gotta get a rider for them. Otherwise they are classed as toys and you might get a couple bucks for unbuilt kits each. Paints and supplies not covered. Tools not covered. built kits not covered, up date or add ons to a kit not covered, work benches not covered.

I know someone personally who lost their collection valued at over $10K including display cases, kits, built models, supplies, and tools and got $250 for it all from his regular home owners policy and he had to fight for that.

It may very greatly from insurance company to insurance company. Go with a well known company.

Farmers, State Farm or AmFam tend to treat their customers the best when it comes to dealing with claims and being fair about it.

Make sure you have adequate coverage. A 200K policy on a 200K home isn't enough. It probably wont even rebuild your home. The second thing they are going to gestimate is personal belongings, and then appliances, silverware, kitchen items that people generally don't even think about having to replace... so you end up short from the settlement just to cover the basics much less a hobby

The best coverage and record, according to AmFam, is a video tape of the collection kept in a safty deposit box updated yearly or as often as needed, with an addtion rider on the policy, for "REPLACEMENT COST" which generally requires a certified appraisal.

And you will have to be very clear with them on the coverage. For example, tools are generally covered so that's an addon. So you have to spell it out. I want $35,000.00 est replacement cost (or sometimes known as FAIR MARKET VALUE) for this this and this item. And here is my documented proof.

It was something like $40 addtional premium monthly to cover $40k worth of hobby/specialty stuff.

Edited January 19, 2011 by CAL

[jbwelda]

insurance companies dont build those big buildings by paying out claims. sure they will *sell* you a "stated value" policy...but just try to collect on it. it usually doesnt happen in my estimation.

go to ebay and look at completed auctions for listings with "built" in the title. thats what our built models are "worth": basically nothing.

stop stressing, its just plastic, not an "investment". you want an investment? buy apple or exxon/mobil stock. and be prepared to lose your a$$ on that too.

and turn off your heater when you leave the room.