Quote:
Originally Posted by edgarspencer
I'm at a loss when I see posts like this. Insure it for what you paid for it. Done.
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I think it is something that is discussed in most collector activities. Watch Antique Roadshow. On almost every item, they give a range of values and then end with "For insurance purposes I would insure it for at least $_____, where the number is at least 50% more than they just appraised it. It makes the owner smile more and probably indicates the amount of questionable activity that occurs during an insurance claim by both the owner and the insurer. If you are really going to insure it, much depends on the policies of the insurer and the process they go through on a claim.
If you bought the gun at an open sale or in an auction, the answer is already known as mentioned. In a case where you bought it from an individual and you believe you paid well under market value, then about the only thing that will satisfy the insurer as a base will likely be a written professional appraiser. You have to remember that in the event of a loss, you likely won't have the gun available for an appraisel at that time. The original purchase price is going to form the basis of the settlement and you will need some proof of that. Unless I am mistaken, the same will be true of the IRS on the loss. Basis is basis, and you don't realize gains until you sell.
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