ISO PM 00 12–STAMP AND COIN COLLECTIONS FORM

(March 2018)

Coverage under a Stamp and Coin Collections Form is a type of inland marine coverage focusing on philatelic and numismatic property and related items. It may help to know the following:

· Numismatic property - Refers to coins, medals, tokens and similar property.

· Philatelic property - Refers to postal or revenue (tax) stamps and related material.

Purchasing separate coverage facilitates protection at amounts that best reflect a special property’s value. Valuation is typically based upon relevant documentation such as a current appraisal or sales receipt. Separate protection is important since severe coverage limitations exists in standard homeowners policies for such property.

Related Articles:

ISO PM 00 09–Personal Articles Standard Loss Settlement Form

Hobbies–Hazards and Opportunities.

ANALYSIS OF POLICY

SCHEDULE

The schedule has space to indicate coverage by entering a limit and premium for each of the following:

· Unscheduled Property – Blanket Insurance (Postage Stamp Collections and Rare/Current Coin Collections)

Note: This is only for low valued items because the maximum payment is $1,000 per coin collection or $250 per stamp or coin, subject to even more limitations.

· Scheduled Property

Example: Pete Laminate's Schedule
Schedule
Items Covered	Amount of Coverage	Premium
Collection of stamps (200), Stamp books and mountings	$1,500	$25 (policy minimum)

Example: Klara Blank's Schedule
Schedule
Item Covered	Amount of Coverage	Premium
1878 Hunter Silver Dollar - mint cond.	$1,500	$12
1906 Native Bust Cent - very good cond.	$900	$8
1916 Running Servant Half Dollar - extra fine cond.	$180	$1
1909 St. Baubles $20 Gold Piece - very good cond.	$1,790	$15
1796 Draped Hair Half Nickel - extra fine cond.	$1,400	$10

The form has additional space for specifically listing items and to indicate whether Agreed Value Loss Settlement in Common Policy Provisions Form applies.

Related Article: Common Policy Provisions

A. Property Covered

1. Stamp and Coin Collections coverage applies globally to all items listed as covered property. However, such property must meet the following requirements:

a. It has to be either owned by the named insured or in an insured’s possession or control.

Example: Fred returns from a long weekend and finds that his condo was burglarized. He files a claim that includes theft of two coin collections. His insurer contacts him, questioning one collection because none of the items he documented as having been stolen appear on his policy’s schedule. Fred sends documentation of the items, explaining that they belonged to a nephew who he was helping to organize and categorize. The nephew’s property, subject to Fred’s policy limit, is eligible for coverage.

b. A coverage limit and applicable premium must be entered next to the property appearing in the declarations.

The property covered by this form is subject to Paragraph D.1. Loss Settlement in PM 00 01– Common Policy Provisions since that provision includes coverage limitations.

2. Postage Stamp Collections

This property class applies to a wide variety of philatelic property such as the following:

a. Postal stamps (due, envelope, official match, medical and revenue)

b. Covers, essays, locals, proofs and reprints (as well as similar property)

c. Stamp books, mountings and pages (but only when they contain covered philatelic property)

3. Rare and Current Coin Collections

This property class applies to a wide variety of items that facilitate financial transactions or with honorific value such as the following:

a. Bank notes, medals and paper money

b. Money tokens and similar numismatic property

c. Property used to display, contain or mount property that qualifies as coins and numismatic property

Philatelic property
Postage stamps	Stamped envelopes	Postage due stamps
Official stamps	Revenue (tax) stamps	Match stamps
Medicine stamps	Covers	Locals
Locals	Reprints	Essays
Proofs	Books	Pages and mountings
Numismatic Property
Rare coins	Current coins	Medals
Paper Money	Bank notes	Tokens
Coin albums	Containers	Frames
Cards	Display cabinets

Coverage is provided for all of the above and similar property that is in an insured’s possession or control.

Related Articles:

Coin Glossary

Stamp Glossary

B. Property Not Covered

1. Stamp and Coin Collections Form coverage is inapplicable to a number of situations. Ineligibility under this class occurs for the following reasons:

a. The property is NOT part of a collection (either stamp or coin)

Example: A fire occurs at Stephanie’s home. She includes a claim for $1,750 as part of loss in unscheduled coin property. Her insurer later settles the loss but reduces the coin portion. In its investigation, the company’s adjuster finds out that $800 of the loss involved commemorative Olympic medallions, which is ineligible property.

b. The property while being mailed (unless it is registered mail)

c. The property is in the custody of a transportation company

Finally, legal status also affects eligibility.

2. If the property is contraband or is involved in any form of illegal activity, it is disqualified as eligible, covered property.

C. Perils Insured Against

The ISO Stamp and Coin Collections form normally protects against all forms of direct, physical loss. However, it does not insure against loss or damage caused by:

1. Work that is performed on or from handling of covered property

2. The action of:

a. Wear and tear, gradual deterioration or inherent vice

b. Insects or vermin

c. Creasing, denting, fading, scratching, tearing or thinning

Example: Mary decides to update her stamp collection inventory and, when opening one album, she notices that a cover sheet had folded over and the pressure of the crease created a wear line on one of her most valuable stamps. This loss in value is not eligible for coverage under her policy.

d. Color transferring, dampness, depreciation, inherent defect or temperature extremes

e. An individual article disappearing (such as a coin or stamp or other property). However, exceptions exist for individual items that are specifically described and insured as well as items that are mounted in a volume and the volume page containing the item also disappears.

D. Deductible

This insurance is subject to the policy deductible that appears on the declaration page.

E. Option

The ISO Stamps and Coin Collections Form offers an additional coverage that supplements its base protection, but only if the policy shows that it has been selected either in the declarations or elsewhere.

Safe or Vault Premium Credit for Postage Stamp and Coin Collections

A premium credit applies to the amount charged for insuring property under these classes. However, the credit is contingent upon keeping 75% of the collections within either a fireproof safe or within a vault that is equipped with a combination lock. The storage requirement applies only when property is not being used or exhibited. The 75% of collection stipulation is based on the collection’s total value covered, not on its volume.

Example: Patty reports a theft loss of several coins. Her collection consists of nearly 200 coins. Her coin policy’s premium includes a safe or vault credit and she keeps nearly all of her collection in a special home vault. When her loss is settled, the insurance company removes the premium credit and charges her full premium. As it turns out, while the stolen coins that were kept outside of the vault and kept in display cases only accounted for around 10% of her number of coins, they were worth more than 40% of her collection’s total value.

UNDERWRITING

The best prospects for Stamp and Coin Collection Floater insurance are individuals who seriously collect stamps or other philatelic property or coins or other numismatic property. Most earnest collectors take pride in their special property and typically exercise great care in handling and protecting their collections. Applications for the insurance should be rejected where there is any indication of a moral hazard.

Policies may not be issued to dealers, auctioneers, societies, clubs, organizations, or in other instances under which insurance or replacement of property is granted to or enjoyed by individuals under an insurance certificate (group coverage).

Coverage is typically only available in the name of two or more persons when the insureds are related and reside together. Property that is jointly owned by two or more unrelated parties can be problematic to handle in the event of a loss. Requests to provide coverage on a blanket basis should be carefully reviewed, making certain that the amount of insurance requested is in line with the actual cash value of the property. Providing specific coverage for described major items with the balance of a collector’s property covered on a blanket basis is often a smart coverage option.