ramblin on / insurance/ card values

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Posted By: warshawlaw

CIA allows you to set the limit of insurance and doesn't do the whole inventory thing. I assume that in the event of a claim Hartford will put you through the usual ringer where you have to prove up your claim. Document everything of note with images.

As far as a safe goes, it doesn't stop three very significant things: home invasion robberies, sophisticated burglaries, and natural or manmade disasters. I would hate to lose my cards to a fire, for example; a fire-proof safe is of only limited utility in stopping fire damage and doesn't do much for water or smoke. Putting the stuff you like the most into a safe deposit box (or several of them) and leaving the rest at home ensures that if your house burns down, at least some of your favorite cards don't go with it. And you can enjoy the images of the cards you keep on your PC.

Estate taxes are a lousy reason not to insure your collection against risk. First of all, for the vast majority of people they aren't a factor because of the large amount you can leave tax-free and the ability to leave your entire estate to your spouse tax-free regardless of value and you can effectively double the exemption with a simple bypass trust. The whole estate tax boogeyman is a contrived issue. Today, the estates of only 1 out of every 200 people who die owe any estate tax whatsoever, because the first $2.0 million of the value of any estate ($4.0 million for a couple with minimal estate planning) is totally exempt from the tax. The exemption level is scheduled to rise to $3.5 million ($7 million for a couple) in 2009 under current law. At this level, only 3 of every 1,000 people who die will have an estate large enough to owe any tax. If you have an estate worth millions, you need much more sophisticated estate planning than not insuring your cards.