Info. Query: Model Appraisals and Insurance

[jefftytoo]

Hi guys,

Like many of you, I know, I now own some pretty valuable models—with more on the horizon. Yes, great sentimental value, of course, but I'm talking here of value in cold, hard cash. For instance, when I added up the total cost of my familiar Seaview project (Teskey's big hull kit, Big Dave's custom RCABS system, two separate Merriman upgrade sets, electronics, sound and lighting systems (x2), a lot of custom-made or special-ordered unique parts, many batteries, plus supplies, much miscellaneous stuff and of course, Steve Neill's labor for installing the RCABS system, buttoning up the final build and adding a wonderful paint job)—well, I had to go sit down for a while.

Any of you ever had your beloved, expensive submersible babies appraised? Do you have them insured—as riders on your home policy or otherwise? Any idea how I might go about doing this, or where I might find useful information about it? Our boats almost defy description—rare and unusual hardware which falls somewhere between unique craft and true Art—and they are not the sort of thing just any insurance agent or adjuster can take a gander at and assign an accurate worth.

Any advice or stories of personal experience along these lines would be appreciated…

Many thanks,
JeffP

[subdude]

Re: Info. Query: Model Appraisals and Insurance

Jeff,

A very valid question, and one I'd also like to know the answer to.

Many years ago, I was involved in a traffic accident which damaged my Krick U-25. I was not at fault. After talking to the other parties agent about my truck, rental car, etc, I brought up the damage to my boat. I provided them with documentation of cost for parts and materials to repair, plus a time estimate to fix. They actually cut me a check to repair the boat.

Granted, the Krick was a fairly inexpensive boat, and the damage wasn't terribly extensive. I can only imagine if something like that happened while I was transporting one of the big boats...

Jim

[chips]

Re: Info. Query: Model Appraisals and Insurance

Best thing is to talk with your insurance agent and see if they offer a fine art or a collections (think guns, stamps & coins) rider. Take pictures \of the models, along with price lists for the various components. It may be better to have the agent visit your home shipyard to view the fleet and support equipment.

I work part time at the local Hobbytown USA, and a few years ago a customer had a fire in his home. The insurance company didn't want to pay for his r/c cars that were destroyed in the fire without proof of the cost. He came to the store, and because he had one of our frequent customer cards, we were able to look up his purchases and print copies of his receipts for the previous few years. The insurance company gave him a partial reimbursement for cars, radios, and support equipment.

[jefftytoo]

Re: Info. Query: Model Appraisals and Insurance

Thanks, Bob. Excellent info.

JeffP

[southern or]

Re: Info. Query: Model Appraisals and Insurance

I have 2 R/C models that are priceless-as in last of or one of a kind. The first is my much loved Year in the making SS United States that my wife commissioned as a birthday present. The other is my current project, the OSCARII that is the last hull. Replacement of both would require starting from scratch, so they'd be well over 2-3X what they originally cost. Plus I don't know what to say the OSCAR is worth. Completed, I don't think it'd be wrong to insure it for $4,000 even though I don't have that amount into it-but like I said, this is the last hull so I'd have nothing to replace it with. The SS U.S. is higher but she's a plank on frame hull and in much better shape then her 1:1 counterpart.

[southern or]

Re: Info. Query: Model Appraisals and Insurance

So, I got my appraisal back today on my OSCARII project and I don't know what I should do. It's edging closer to completion, but her replacement build value is 140% above what I have into it. Once more, her appraised value is well over what insurance will cover.

[vasily]

Re: Info. Query: Model Appraisals and Insurance

There are two ways to determine the value and then insure a model.
The first is to produce receipts of the components after a loss. In this scenario you don't get reimbursement for the incredible amount of time you spent building and developing. Any insurance reimbursement would be subject to your policy's deductible and coverage provisions. You would have a real argument with your insurer if the boat sinks and is lost. Different policies have different definitions of "watercraft", which surprisingly may be applied to an RC model.
The second is to have it appraised by a certified appraiser. You would show receipts and any documentation available of labor, along with sale prices of other model subs. Engel kits would be good comparisons. Then you'd have a quiet talk with the appraiser and lead him to the value you want him to establish. With this in hand, you'd buy a rider on your insurance policy for this item, at this cost. It may be expensive- art, jewelry, and my competition shotgun cost 2.5 percent of stated value per year to insure.
Depending on insurer, your coverage may still be limited to fire, theft, lightning and other basic perils or it may be very broad to include disappearance. Insurers have to be hesitant to insure a model that you built against sinking because you built it wrong.

[southern or]

Re: Info. Query: Model Appraisals and Insurance

There are two ways to determine the value and then insure a model.
The first is to produce receipts of the components after a loss. In this scenario you don't get reimbursement for the incredible amount of time you spent building and developing. Any insurance reimbursement would be subject to your policy's deductible and coverage provisions. You would have a real argument with your insurer if the boat sinks and is lost. Different policies have different definitions of "watercraft", which surprisingly may be applied to an RC model.
The second is to have it appraised by a certified appraiser. You would show receipts and any documentation available of labor, along with sale prices of other model subs. Engel kits would be good comparisons. Then you'd have a quiet talk with the appraiser and lead him to the value you want him to establish. With this in hand, you'd buy a rider on your insurance policy for this item, at this cost. It may be expensive- art, jewelry, and my competition shotgun cost 2.5 percent of stated value per year to insure.
Depending on insurer, your coverage may still be limited to fire, theft, lightning and other basic perils or it may be very broad to include disappearance. Insurers have to be hesitant to insure a model that you built against sinking because you built it wrong.

My issue is that the hull kit for the OSCAR is out of production, so any form of hull loss requires a commission to replace just the hull-that's where the 140% came from. As for insurance, the cap on loss is 40% of total value, so I need to add a boating policy to cover it. I'm just shocked that the replacement value is well over two times what I've paid out. As for the operational parts, well those all came from Enegels in the first place so I know how much they are. I'm starting to wonder just what its retail value is now when it's finished because my policies for a lot of my stuff is 'new cost replacement.'

[JWLaRue]

<<Originally posted by "petn7">>

Great advice already given. I second the advice about speaking with your insurance agent. They would be the best source of information since there are many different insurance policies and endorsements/riders/etc.

With respect to valuing the submarine, I think there are two factors: cost of the materials and components and the sentimental value. I have no idea about whether sentimental value can be insured in a "regular" homeowner's insurance policy. I'd like to think it can, but if a submarine's objective value is $600, but its sentimental value is $50,000, I would find it hard to believe an insurance company will be willing to insure it for any price, let alone insure it while still allowing you the ability run it now and then.

[JWLaRue]

<<Originally posted by "Thor">>

Your oscar is not the last of its kind. I have all of the patterns from Kevin and the molds are complete and ready to produce kits. I simply have not put it out there yet.

Matt

[JWLaRue]

<<Originally posted by "Southern Or">>

That's news. When I got it he still had all of the stuff but had stopped production.