How do you find the replacement cost value for an item made for only a few years in the 1940s by an obscure manufacturer and with little-to-no sales history? Our claims adjuster faced such a challenge when the insured reported the theft of a Ranger Scooter manufactured by the Mead Cycle Company in Chicago, IL. The insured claimed a value of $3,000 to $4,000 for the stolen scooter, but initial research turned up no like kind and quality comparable data for determining the replacement value, requiring the expertise of contents claims specialists.
Case Background
While our adjuster attended to other priorities, contents claims specialists researched the pedigree and types of scooters dating back to the 1930s when scooters were gaining popularity as a low cost, fuel-efficient mode of transportation. The major brands of the day were Cushman, Salsbury and Moto Scoot. Mead Cycle Company was a major producer of bicycles in the first half of the 20th century. Mead wished to capitalize on the brand recognition of their "Ranger" bicycle. In an agreement with Moto Scoot, their scooters were branded as "Mead Rangers." Through old advertisements, periodicals, and historical documents, the contents specialists determined that the Mead Ranger Scooter was marketed for only a few years in the late 30's until the Second World War. The actual specifications of the "Ranger" were determined, but there was little-to-no sales history of the item in question.
Not letting a cold trail stand in their way, contents claims specialists investigated the current motor scooter market that has grown in recent decades out of nostalgia of scooters of the 1950's combined with the lure of fun, economical transportation. This return of interest has given rise to a collector's market for older, often orphan brands and models of vintage motor scooters. The content specialist was able to ascertain comparable scooters in the Cushman, Salsbury and Moto Scoot lines. These comparables offered our contents claims specialists the data needed for like kind and quality scooters with a collectible market to provide valuation benchmarks.
The Result
Contents specialists determined three basic price ranges for the Cushman scooters as a like kind comparable for the Mead Ranger Scooter:
- $750 to $1,500 for un-restored, often not running condition
- $1,500 to $3,500 for good, un-restored (or an older restoration), running condition
- $3,500 to $4, 995 for excellent restored and running condition
Based on the insureds'discussions with the contents specialist, the resulting condition assessment of the stolen Mead Ranger Scooter placed the scooter at the high end of the second price range category, recommending $3,500 for the retail replacement value. The result – a happy ending for all. The carrier did not overpay or underpay, and through research, the insured's estimate from anecdotal discussions with others was confirmed to be accurate.
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