Bookworm: Determining replacement values for vintage novels
Coverage Q&A: A house fire damaged several of the insured's decades-old books.
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Editor’s Note: This week, our Q&A concerns books, including some old novels in poor condition. How does the insurer determine the value, and what lengths should an insured have to go to establish that value?
Question: I have an insured who had a fire loss. In the house were old hardback books that belonged to the insured’s parents that were worth over $800 a piece, according to internet sources. The books were purchased about 50 years ago, and several no longer have their book jackets.
The adjuster wants us to find a book appraiser to see what the books are worth now, according to their current conditions. The homeowner will have to drive to Chicago from South Bend, Ind., to conduct the appraisal. This is the only insurer to have asked us to do this; normally, the adjuster will take the replacement cost price for a book, depreciate it by age, and give us the ACV.
Among the collection is a hardback book by Erma Bombeck that no longer is in production; Amazon currently lists that book for sale, new, for $400.
What is the protocol for book replacements in insurance coverage?
— Indiana Subscriber
Analysis: Determining the value of the personal property is never easy. This is why insureds are encouraged to keep receipts, make home inventories, and take pictures of their property. However, even with these measures, it is still a complicated process. The standard homeowner’s policy provides actual cash value coverage for personal property losses unless the policy has been endorsed. Also, some property is easier to establish a value for than others; for example, ofas and tables, or maybe appliances, may be found on a chart of depreciation costs.
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