Dean is a Claim Supervisor at State Farm Insurance and a member of the Midwest Chapter of HMGS (The Historical Miniature Gaming Society).
In his tireless zeal to serve his readership and the hobby, editor Dick Bryant has expressed a desire to print an article explaining the murky details of insurance coverage as they pertain to miniature figure collections. Although thorough treatment of this subject would swell this issue of THE COURIER to dimensions rivalling Chandler's Campaigns of Napoleon, and while understanding that even lean little insurance articles are apt to bore the average reader insensible, I will accept the challenge of attempting to explain property insurance as it applies to our silent metal heroes.
Coverage for figures can be obtained under two basic categories of property insurance. Homeowner and Renter policies are one type; Inland Marine Personal Property "Floater" policies the other.
Miniature figures are covered under the "contents" provisions of Homeowner and Renter policy forms, just as is furniture, clothing, and other personal property. Covered property need not be "scheduled" (insurance jargon for specifically described property) in order to qualify for coverage, but all such unscheduled personal property is lumped together in one category and there is a "policy limit" that applies to the entire category. This policy limit is the highest dollar figure the insurer will, pay regardless of how much all your belongings are worth. For instance, if your dwelling is insured for $50,000, most policies will allow $25,000 (one-half) additional coverage for personal property. $25,000 is the policy limit with regard to personal property.
Personal Article Floater policies (often called Personal Property Floaters), on the other hand, are written on property that is specifically described in the policy. It is common to insure expensive items such as furs, fine art, and jewelry in this manner, and there are many insurers who will cover miniature figure collections in this way. The policy is based on documentation provided by the insurance purchaser that substantiates the value of the property. Insurers usually require appraisal of the property prior to insuring it under a "Floater".
Under Homeowner and Renter policies, damage to covered property must be caused suddenly and accidentally (from the point of view of the policyholder) by a "peril" that is specifically named in the policy. Examples of "named perils" are Fire, Lightning, Windstorm, Hail and Theft. Most modern policies include coverage for quite a number of named perils, usually seventeen. To my knowledge, the more desirable "All-Risk" type personal property coverage is not available under any Homeowneror Renter policy form, and one must purchase a "Floater" in order to obtain such coverage.
"All-Risk" coverage is much broader than is "Named Peril" coverage, because every imaginable peril is covered except those specifically excluded by policy language. It is much easier for insurance policy writers to specify what perils (or cause of loss) the policy will cover than to wrack their brains trying to include in the policy every possible cause of loss it will not cover.
To illustrate the difference between "All-Risk" and "Named Peril" coverage, let's say you have deployed your 30mm Seven Year War armies on the den floor preparatory to re-fighting Leuthen. Blundering Aunt Agnes bustles unexpectedly into the room and crunches your favorite Prussian grenadiers under her size eleven orthopedic sneakers. If you were insured under a "Named Peril" policy, this loss would not be covered because "human trampling" is not a peril specifically named in the policy. If you had "All-Risk" coverage your claim would be paid, because "human trampling" is not specifically excluded by policy language.
It should be pointed out that because coverage is broader, "All-Risk" coverage is somewhat more expensive, though not prohibitively so.
How an insurer determines the amount it will pay you as the result of a covered loss depends upon how well you document (prove) the value of your damaged property, and upon whether your policy evaluates property on an "Actual Cash Value" (ACV) basis, or on a "Replacement Cost" (RC) basis. Documentation will be discussed shortly, but first let's take a look at the two evaluation techniques. By the way, are you beginning to experience the exasperation usually associated with attempts to understand a complex set of wargame rules? Hope not.
ACV coverage means the insurer will base its payment on the replacement cost of the damaged property at the time the loss occurred, but this replacement cost figure is subject to depreciation based on age and/or condition. RC coverage, on the other hand, guarantees payment of the replacement cost of the damaged property without any reduction due to depreciation. One problem with RC coverage purchased on policies that do not require "scheduling" is that the property must actually be replaced before the insurer will pay the entire amount. Under the "Floaters" if the property cannot be replaced, the insurer will still pay an amount commiserate to the full value of the insured property.
Before we move on, let me give an example that will illustrate the differences between ACV and RC coverage. Let's say you have had 300 unpainted Stadden figures destroyed with a tornado (windstorm) hit your home (heaven forbid). These figures cost you $240 back in 1968, but cost $600 to replace today. If yours was an ACV policy, and you were unable to convince the adjuster that the figures were in the same mint condition at the time of the loss that they were on the day you purchased them, he would offer to pay you replacement cost minus, say, 40% depreciation, or a net payment of $320. Had you purchased RC coverage, you could expect to recover $600 upon presenting the adjuster with a receipt for the purchase or replacement figures.
It should be mentioned that a deductible amount, usually $100, is sometimes applicable to the total settlement on a per loss basis.
Establishing the value of a miniature figure collection after a loss has occurred can be a real problem, especially if the figures are completely destroyed, as they would be in a serious fire. It is the responsibility of the owner of property to provide evidence of the value of that property in order to collect damages under an insurance policy. Therefore, in order to avoid serious hassle and attendant stress after a loss has been sustained, it is strongly recommended that the size and value of a figure collection be documented before any loss occurs. This documentation should be stored in a safe place.
Appraisal is an excellent way to establish value. Most insurers require an appraisal of the property to be insured before issuance of one of the Floater policies, but this is not the case with Homeowner or Renter policies.
The problem for us seems to be: Where do we go to get appraisals the insurer will accept? Actually, it's easier than one might suppose.
To most folks, including insurance agents and adjusters, miniature figure collecting and wargaming are worlds unknown. General ignorance regarding miniature figure values pervades the land, and there is no established procedure for evaluating figures (with the possible exception of Britain's figures), nor any generally accepted authority that must be consulted. Most companies are quite willing to accept the appraisal credentials of any entity that appears reasonably cloaked with expertise and credibility. I am confident that owners and employees of hobby shops dealing in miniatures qualify as expert appraisers in the eyes of an insurer. Even private individuals with credentials showing them to be experts in the field would be acceptable. I do recommend that appraisals be submitted on officious appearing letterhead stationary.
Another way to accumulate documentation is to keep receipts of all figure purchases, painted and unpainted, and also keep receipts for any amounts paid to professional painting services. It is a good idea to obtain price lists from these painting services in order to establish the market value of paint jobs you have done. Price lists of painted and unpainted figures are also helpful evaluation tools.
Believe it or not, photos are absolutely one of the best means to document the existence, quality and value of property. Take shots of your massed armies to show volume, and snap close-ups of favorite individual figures and units in order to illustrate quality. Don't forget to photograph all those expensive buildings and tabletop accessories as well.
Finally, carefully list (schedule) all your figures, buildings and accessories. Not only will this help prove a claim, it will also help you to remember all the wargame stuff you have accumulated over the years.
Most problems involving insurance claims are precipitated by insured who are unable to adequately support their claims with documentation, and are then distraught because the adjuster is unwilling to honor the full amount of the settlement demand. Contrary to popular belief, adjusters are paid to settle claims, not to aggravate or "nickle and dime" claimants. But adjusters are required to justify to superiors the amounts they pay out for claims. Most will bless the claimant who is able to present the documentation that allows a quick and equitable settlement and that supports the payment made. It is an accepted axiom of the insurance industry that the very best claim is the one that is paid and closed.
To sum up, although adequate coverage can be obtained under standard Homeowner or Renter policies, there are disadvantages to this type of coverage that are negated, or at least lessened, by insuring your figures under a Personal Article Floater or a Personal Property Floater. Persons interested in purchasing one of the "Floaters" should contact the insurer that writes their Homeowner policy, as it is easier to work through an agent that handles your other insurance needs when looking for a somewhat special policy to cover unique types of property. it would be my recommendation that you express the desire to have your figures covered on an All-Risk, Replacement Cost, scheduled basis. Your reward will be relatively pain free recovery of damages should you be compelled to file a claim due to some misfortune.
Back to Table of Contents -- Courier Vol. VII #4
To Courier List of Issues
To MagWeb Master Magazine List
© Copyright 1987 by The Courier Publishing Company.
This article appears in MagWeb (Magazine Web) on the Internet World Wide Web.
Other military history articles and gaming articles are available at http://www.magweb.com