How to value a stamp collection for insurance

Most of the work is record-keeping, not appraisal. An insurer pays out on what you can show you owned and what it would cost to replace. A collection with no inventory and no photographs is hard to claim on at any value, whatever the policy says. A well-documented collection at a modest, honest figure is usually easy to claim on.

Which “value” an insurer is asking for

People use four different numbers when they talk about what a collection is worth. Only one of them is the right basis for cover, and the policy wording tells you which.

Replacement value is higher than what a dealer would pay you, because buying back a stamp costs retail and selling it brings wholesale. It is still well below the catalogue figure for most material. Common stamps in average condition replace cheaply, and condition faults lower the figure further. See why a stamp sells for less than its catalogue price and what each condition fault does to the price.

Policies also differ in how they settle a claim. Some pay a scheduled item at its agreed value. Others pay the cost of replacing it, or its value at the time of the loss, up to a limit. These terms are defined in the policy and vary by insurer and by country, so ask your insurer or broker which basis applies before you choose a figure.

Checklist: getting a collection ready to insure

1. Read your current home or contents policy. Look for a special limit on collectibles, valuables or stamps and coins. It is often in a section on special limits or exclusions, not in the headline cover figure. Note whether it is a per-item limit, an overall limit, or both.
2. Sort the collection into two groups: the bulk of ordinary material, and the few items that could plausibly be worth something on their own. Most of the value of most collections sits in a small number of items, so this split decides how much documentation you need.
3. Make an inventory at the right level of detail for each group (see the next section). Album-level entries are enough for bulk. Item-level entries are needed for anything you may want to schedule.
4. Photograph everything you list: each album page, each stock card and, for the key items, the front and back of the stamp. Photos taken in good light against a plain background are more useful than many quick ones.
5. Estimate a realistic replacement figure for the bulk from what comparable lots actually sell for, not from catalogue totals. The guide to which number to use for insurance goes through how to arrive at it.
6. Get a dated, written valuation for the key items if their total is more than your policy’s collectibles limit. Your insurer decides what kind of valuation it accepts, so ask before you pay for one.
7. Keep receipts and certificates. Purchase invoices, auction lot descriptions and expertising certificates all support a claim. Copy them, and store the copies with your inventory.
8. Decide how to cover the gap. If the realistic figure is within the existing limit, you may need to do nothing more. If it is above, ask about scheduling the collection or specific items, or about a separate collectibles policy.
9. Tell the insurer how the collection is stored if it asks. Storage and security can affect cover and premiums.
10. Store a copy of the records away from the collection, for example with a family member or in cloud storage. An inventory kept in the same drawer as the albums is lost in the same fire.
11. Set a date to review it. Put a reminder in your calendar to update the inventory and the figure.

What to record in the inventory

An inventory has one job: to let someone who has never seen the collection understand what was in it. It does not need to be elaborate.

For each album, stock book or box of bulk material, record:

• a short description (for example, “Great Britain, used, 1950s–1990s, about 40 pages”);
• a rough count of stamps or pages;
• photographs of every page;
• your replacement estimate for the album as a whole.

For each item you consider valuable on its own, record:

• country, year and the catalogue number, noting which catalogue;
• whether it is mint or used, and an honest description of its condition, including faults such as thins, creases, toning or short perforations;
• where and when you bought it and what you paid, if you know;
• any certificate, with its number and the body that issued it;
• front and back photographs;
• your replacement estimate and its source.

Condition is where most inventories go wrong. An item written up as “fine” that turns out to have a repaired tear will not be settled at a fine price. For the terms that dealers and appraisers use, see the stamp condition grading guide.

When a professional appraisal is worth paying for

For a collection whose realistic value is within the cover you already have, a formal appraisal often costs more than it protects. For items that you want listed on the policy at an agreed value, insurers usually ask for a written valuation from someone qualified to give one. The guide to whether it is worth getting stamps appraised covers how to decide.

A few things make an appraisal more useful to you and to an insurer:

• Independence. An appraiser who is not also offering to buy has no reason to lower the figure. If a dealer values the collection, ask in writing whether the figure is for insurance (replacement) or for purchase (what they would pay). They are different numbers.
• A clear basis. The report should say what value it gives, as at what date, and how the items were examined.
• Item detail for the key pieces. A single total with no breakdown is hard to use if only part of the collection is lost.
• A known fee basis. Agree the fee before the work starts. Be wary of someone who sets the fee as a percentage of the value they arrive at, and of any offer to produce a high figure for a fee. The guide to stamp appraisal scams lists the common patterns.

Expertising, by a recognised expert committee or society, confirms whether a stamp is genuine and correctly described. It is not a valuation, but for a scarce item it supports one, and some buyers and insurers will want a certificate before they accept a high figure.

Keeping the valuation current

An insurance figure is a snapshot. Review the inventory and the number:

• when you buy or sell anything significant;
• when you renew the policy, at least to check the limits have not changed;
• every few years in any case, or at the interval your insurer asks for on scheduled items.

Stamp prices for most material move slowly, so a review is usually a matter of adding new items and checking the key pieces, not starting again.

Storage and making a claim

Insurance pays for loss. It does nothing for a collection that slowly loses value in a damp loft or a sunny room. Damp, heat and light cause most of the damage collections suffer, and that damage is rarely covered. See how humidity affects stamp value.

If you do have to claim, the records above are what you will be asked for: the inventory, the photographs, the valuation and any receipts or certificates. Report the loss promptly, keep any damaged material until the insurer says otherwise, and do not try to clean or repair it.

Common questions

Should I insure my stamp collection at catalogue value?

No. Catalogue value is a reference price for a stamp in a stated grade, and a total of catalogue values overstates almost any real collection. Insure at a realistic replacement figure you can document, and ask your insurer which value basis the policy uses.

Does home insurance cover a stamp collection?

Many home and contents policies cover a collection as personal property, but often only up to a special limit for collectibles or valuables that is far below the main contents figure. Check the policy wording, and ask about scheduling the collection or specific items if its realistic value is higher than that limit.

Do I need a professional appraisal to insure stamps?

Not always. Within your existing collectibles limit, an inventory and photos are often enough. To list items on a policy at an agreed value, insurers usually ask for a dated, written valuation from a qualified person. Ask your insurer what it accepts before you pay for one.

How often should a stamp collection be revalued for insurance?

Review it when you buy or sell anything significant, when the policy renews, and every few years in any case, or at the interval your insurer sets for scheduled items. Most stamp prices move slowly, so a review is usually an update, not a new appraisal.