Americans treasure their Second Amendment right “to keep andbear arms,” and according to GunPolicy.org, there are approximately101.05 guns in the U.S. for every 100 people, the highest percapita in the world when it comes to owning firearms. For insuranceadjusters this means the chances of encountering guns andammunition as part of a claim are extremely high.

Enservio, a provider of software and valuation services acrossthe entire spectrum of contents, announced that firearms andammunition are frequently overvalued in insurance claims from morethan 50% to 126% respectively. Of the $2 billion in claims thecompany processes each year, 10% contain guns, ammunition andfirearm accessories, and there is a common misperception amongpolicyholders that guns hold their value and are worth more thantheir purchase price. In reality, the opposite is true.

The company found that:

• The average policyholder claim for handguns is $285, while theactual cash value is only $186.
• Policyholder claims for rifles averaged $291 with an actualcash value of $186.
• Rifle ammunition and magazines are usually significantlyovervalued by the policy holder. Ammunition claims averaged $104with an actual cash value of $46, while magazine claims averaged$36 with an ACV of $10.

“Being a specialty item, firearms have unique characteristicsthat claim pros need to know about in order to fairly reimburse orreplace these items correctly,” explains Chad Horlborgen, Enservio senior contents consultant.

Claims adjusters should always consult a knowledgeable expertbefore determining the value of any guns or ammunition because somany factors impact their value. Horlbogen has created a webinarfor adjusters on the best practices for valuing firearms andammunition.