Hypothetical FMV Question 1 1

[Ozonetv]

Lets say I have a book with a FMV of $700. I'll submitted to the Express Tier. My question is whats the downside of declaring the FMV of $999? Its the same cost for grading - wondering if it effects the shipping cost back - or anything else? 

Thanks

[Lightning55]

It will make no difference.  You determine the DV (declared value).  That is the amount you are insured for while in CGC's possession - the maximum amount.  If they lost your book, or a safe tipped over and crushed it, they will give you that value or its FMV, whichever is lower.  So until there is an "incident", it's irrelevant.

The tier limits are there because higher value items cost CGC more to insure, and are a larger responsibility when handling, grading, pressing, etc.  If you submit a high grade $2000 comic at $200, that's probably not going to fly.  They have the right to move the comic to the correct tier based on true value.

The DV is always an estimate.  You might think your book has a value of $700 based on YOUR idea of what the grade is.  But isn't that why you are sending it in?  To determine the grade?  Maybe it's worth more, maybe less.  It's ballpark.  THIS IS KEY: It's a number you would be satisfied with in the event of a loss.

If there's a claim, it has to become LESS ballpark because a value has to be determined for compensation.  But lets say your $700 raw comic gets a great grade and becomes a $1500 slabbed comic.  You still will only get $700 if lost, as that is the value you assigned.

Regarding coverage on the way back, same applies.  If you call it $999 instead of $700, you will be covered for a bit more while at CGC.  If they are sending it out insured, it might cost a bit more for the return package, depending on the total $$$ value of the package. 

They go by the number of comics and the total value, so upping them in general could push you into a higher return shipping fee, but the rates don't move up much per bracket.  There's a schedule they go by here: https://www.cgccomics.com/news/article/8324/shipping-collectibles-cgc/

But in all cases, even if you "overstate" the value, your claim of value still has to be substantiated with comparable sales should there be a loss.  And if you have been too conservative in your value, you can cost yourself some money.

Edited February 26, 2021 by Lightning55

[theCapraAegagrus]

6 hours ago, Lightning55 said:

It will make no difference.  You determine the DV (declared value).  That is the amount you are insured for while in CGC's possession - the maximum amount.  If they lost your book, or a safe tipped over and crushed it, they will give you that value or its FMV, whichever is lower.  So until there is an "incident", it's irrelevant.

The tier limits are there because higher value items cost CGC more to insure, and are a larger responsibility when handling, grading, pressing, etc.  If you submit a high grade $2000 comic at $200, that's probably not going to fly.  They have the right to move the comic to the correct tier based on true value.

The DV is always an estimate.  You might think your book has a value of $700 based on YOUR idea of what the grade is.  But isn't that why you are sending it in?  To determine the grade?  Maybe it's worth more, maybe less.  It's ballpark.  THIS IS KEY: It's a number you would be satisfied with in the event of a loss.

If there's a claim, it has to become LESS ballpark because a value has to be determined for compensation.  But lets say your $700 raw comic gets a great grade and becomes a $1500 slabbed comic.  You still will only get $700 if lost, as that is the value you assigned.

Regarding coverage on the way back, same applies.  If you call it $999 instead of $700, you will be covered for a bit more while at CGC.  If they are sending it out insured, it might cost a bit more for the return package, depending on the total $$$ value of the package. 

They go by the number of comics and the total value, so upping them in general could push you into a higher return shipping fee, but the rates don't move up much per bracket.  There's a schedule they go by here: https://www.cgccomics.com/news/article/8324/shipping-collectibles-cgc/

But in all cases, even if you "overstate" the value, your claim of value still has to be substantiated with comparable sales should there be a loss.  And if you have been too conservative in your value, you can cost yourself some money.