When it comes to handling contents claims, adjusters meet all types of challenges when assessing valuation, especially with fine works of art or unique collectibles. Without the proper paperwork and authentication, adjusters can find themselves in a tough spot, and the last thing adjusters, carriers, or the insured want is to get into a "he said/she said" argument that could hold up a claim settlement for weeks.
The Case of the Merry Makers Toy provides a great example of how having the right information can quickly clarify the true value of a unique collectible and save everyone a lot of time and unnecessary headaches.
Case Background
The insured issued a claim for a colorful tin wind-up toy believed to be from the 1930s. This toy appeared to be a Mickey Mouse representation — a four-mouse band made from lithographed tin. The insured was claiming $30,000 as the value of this vintage toy. The insurance carrier outsourced the research on the replacement value of the collectible to a contents claims firm with a team of experts schooled in assessing the valuation of fine arts and collectibles.
Contents claims specialists recognized the toy as a Louis Marx & Company product known as the Merry Makers. They were originally produced in 1931 in an attempt to capitalize on the popularity of Disney's Mickey Mouse character, but Marx did not hold a license from Disney.
The claimed toy was still a good example of a lithographed tin, early 20th century American wind-up toy, and could be considered relatively rare and desirable (though not nearly comparable to the early Disney-licensed toys). Marx produced several versions of this toy, and the one in question was not the most valuable edition. There was also no original box, which would have increased its value. Had it been a mint condition Disney-licensed toy in its original box, it could have been worth a significant sum, though perhaps not quite as much as the amount claimed.
The Result
Once the toy manufacturing and licensing issues had been authenticated, the next step was to assess valuation by citing both recent auction results and several dealer prices. Based on those research findings, the carrier was able to substantiate that the full retail value of the claimed toy fell squarely in the range of $1,500 to $2,000.
The entire authentication and valuation process took two days and resulted in an accurate and fair valuation of the insured's unique collectible, a process that could have dragged on for numerous weeks and resulted in a significant overpayment by the carrier without research support from a firm specializing in contents claims.
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