How to appraise a big lens?

Our insurance agent convinced us to switch our insurance policies to a new carrier. This included a personal articles coverage on my camera gear that I purchased with the understanding that it covers replacement cost.  Well, everything seemed peachy until the new carrier came back and asked for an appraisal on my Nikon AFS VR ED 400/2.8 G lens.  It seems their policy is to have an appraisal on anything over $7000.  My research has not, to date, come up with a good way to establish value and I am flummoxed on this.  I cannot exactly go next door to a camera store that stocks this behemoth. 

Seems like replacement should be based on new pricing. But that is another debate.

Checked on the NANPA insurance and it is much higher than my original insurance carrier.  Wondering if the higher cost is the price of dealing with a carrier who knows photo equipment?

Any insights on this?

Pablo

Pablo,

I recently had to do this for my insurance company.

I have a canon 500mm f4IS Version 1. The replacement for this would be the 500 Version II which costs 10K. In order to insure for replacement value (which my company was happy to do) I needed to get an appraisal.

Basically I wrote up a document that had the lens model and serial number. Then a statement as to what the replacement cost of the lens would be. (In your case whatever the current model costs). Followed by a statement that the lens is in good working order and condition is as stated to the insurance policy.

This document was then signed and dated by my local camera store after they inspected the lens. (Keep in mind that they do not sell this lens, in fact the person who helped me had never seen one). But this was what I needed to do to satisfy my insurance company. I also included a bill of sale (Bought from a private party). So you will likely need a receipt or similar.

You should check with your agent to see if this will satisfy the underwriter, but in my case it was just exactly what they needed.

Hope this helps.

I would not insure it for it's current value but rather insure it for replacement value in which case all you need to do is look up what it costs new.

Right. If insuring for replacement value I don't see why providing various retail listings showing the price of the lens would not suffice.

vbpholaw wrote:Right.  If insuring for replacement value I don't see why providing various retail listings showing the price of the lens would not suffice.

Makes sense to you and I... but we are not insurance underwriters. (at least I assume you are not).  Some companies need the "appraisal."  Perhaps this is more for determining that you actually have what you say you have, and less about determining the replacement cost.

E.J. Peiker wrote:I would not insure it for it's current value but rather insure it for replacement value in which case all you need to do is look up what it costs new.

I agree!!! Insurance companies always seem to leave you on the short end if you give them the opportunity. If you watch "Antiques Roadshow", you will always see the recommendation to insure items for more than the appraised value. Replacement cost should indicate that they will replace it for full replacement value of a similar lens and not a depreciated or appraised value.

Joe

SantaFeJoe wrote:Replacement cost should indicate that they will replace it for full replacement value of a similar lens and not a depreciated or appraised value.

Errrr, similar lens, one that is similar to the one you just lost, i.e., a used lens, not the brand new one that just shipped in from Japan and is now being displayed on the store shelf for sales.

Usually nobody would pay the price of a brand new lens for a used lens.

DChan wrote:

SantaFeJoe wrote:Replacement cost should indicate that they will replace it for full replacement value of a similar lens and not a depreciated or appraised value.

Errrr, similar lens, one that is similar to the one you just lost, i.e., a used lens, not the brand new one that just shipped in from Japan and is now being displayed on the store shelf for sales.

Usually nobody would pay the price of a brand new lens for a used lens.

From Allstate's definition: 
Actual Cash Value vs. Replacement CostActual Cash Value and Replacement Cost coverage options refer to different ways your belongings may be replaced in the event of a covered loss. Many of your belongings will decrease in value over time, so it's important to consider this when you purchase coverage for protecting your personal property.

Actual Cash Value Coverage

Your personal property is typically covered for what you might expect to get if you sold it at fair market value - possibly at a garage sale, online auction site or other sales event - as replacement cost minus depreciation. 

This coverage option may allow for the insured item to be replaced with a used item but not always a new one. Premiums for Actual Cash Value insurance coverage though generally cost less than those for the Replacement Cost coverage option. 

Replacement Cost Coverage

With Replacement Cost coverage, your insured personal property items are usually covered for what it costs to buy them again at the time of the claim as new, although premiums for this type of insurance are typically higher than the Actual Cash Value insurance coverage option.


http://www.allstate.com/home-insurance/personal-property-coverage.aspx


Joe

What about contacting the retail place you purchased the lens from (unless you bought it used from another photographer) and get them to "appraise" it and for replacement value?  Then send this to the insurance company.

E.J. Peiker wrote:I would not insure it for it's current value but rather insure it for replacement value in which case all you need to do is look up what it costs new.

Dittos.  It is as simple as this.......and the insurance should agree.  After all, that is what it is going to take to replace it.

A pal of mine who is an international photo traveler/ tour guide got mugged upon arrival in Lima Peru.  His "replacement value" insurance stipulation allowed him to get a check for the Nikon Catalog book value of everything he lost.

But BH Photo pricing is well below Nikon Catalog price, so this worked in his favor.

Write up an appraisal saying whatever you want (provided it is accurate and within reason). Go to a camera store and ask the guy there to print your words on their letterhead. Hopefully you're on a friendly basis with the owners/employees there and they will be glad to comply. You give them a $20 bill as a tip.

You will have an appraisal that says what you want it to, in a form that the insurance company will accept. I did this several years ago. In fact, it was my insurance company's policy manager that told me to do it this way.