How to Ship + Insure a Coin going from US to Anywhere?

Question: If you need to ship a $3,000 coin from the USA to a buyer in Canada (or anywhere) and you want to fully insure it, is there any option to do so?

Curious, I called the USPS, UPS, FedEx, and DHL today. The only carrier that allows the declared shipment of coins from the USA is the USPS, but they will not pay out a Lost Item insurance claim for a coin/currency/bullion item. UPS, FedEx, and DHL prohibit altogether the shipment of coins/currency/bullion within and outside the USA, so they are not an option whatsoever. I thought about shipping via the heavily tracked USPS Registered Mail, but insurance on coins/currency/bullion is not allowed on this either. Any tips or advice would be much appreciated!

 

Log in or Sign up to hide this ad.

Use private insurance. My insurance policy covers shipments to Canada, but if you don't have your own insurance policy I believe there are some one-time policies you can get.

 

That's why I limit my buyers to those that have a USPS employee deliver to their home or business. Sorry I can't help you any more than that.

 

Okay, so I have a Geico/Travelers homeowners insurance policy with a small coverage for my coin consignment business I do out of my home. Would I approach them? -thanks

 

I'm just going to tell you what I discovered during the process of selling the 1932 China "Birds over Junk" dollar (ended up selling for $4800.) I spent about two days trying to find a reasonable solution to this issue - what if I only occasionally have expensive coins to ship overseas, how do I insure them?

The summary would be that, if you are a low-volume seller, the ONLY option you have for coins over $1,000 in value is to use ShipandInsure (a partner of the ANA.) However, to even be able to use their service, you will have to join the NACA (North American Collectibles Association) for a "special introductory offer of $45 for the first six months." I don't personally like paying someone for the right to pay them for a service, and I did talk to someone over there who would not budge on this membership issue. I almost bit the bullet and joined, but the application requires you to be a member of multiple trade associations and have an inventory of over $25k at all times. So this is for dealers, not regular people who get lucky every once in a while.

In the end, if you are not a huge volume coin dealer, you are SOL. I might suggest finding a huge coin dealer to act as an intermediary, if they would even consider it.

 

"What's the best way, Registered Mail. You can cover/insure a single package for up to $25,000 with Registered Mail. And the USPS will honor all of their insurance. I've done it myself, filed a claim for collectible coins lost in the mail and had them pay me."

Just passing along what I was told - the USPS will only pay a certain percentage of the total value of coins if they are lost when you go this route. So you can pay for $5,500 worth of insurance, but they will only cover it up to $3,200. The computers at the post office would not let the USPS employee even ring me out in any other way.

 

In the end, my opinion would be to not ship coins out of the country until a workable solution arrives.

 

Thanks all. I filed a claim for a severely damaged .999 pure silver proof ingot set shipped from USA to Canada. I insured for $5500 and paid $270 to ship via USPS Express Intl. They denied the claim after a thorough investigation by them. Coins/currency/bullion are prohibited. They have not budged. I will likely file the 2nd and last allowed appeal to see if I can get a partial refund. The USPS is a horrible organization with the worst customer service.

 

But that is EVERY shipping company. At least they all tell you up front that you can't ship coins, and that they won't be covered. I find it interesting that there is literally no realistic solution for a small volume seller of coins and collectibles. Yes, PayPal/eBay will offer you buyer protection of some sort, but they'll also gladly sell you a completely worthless insurance package for your coins.

Maybe we all need to move to Doug's area and use his Post Office?

 

I agree. I think this is the best route, except they will not likely payout an insurance claim for ANY coin/currency/bullion. Shipping Registered at least has a strict signature chain, so I might have a leg to stand on with PayPal or eBay if a Buyer 'claims' they did not receive an item.

 

Was your coin sold through eBay or PayPal? Just curious...

I wonder if any coin dealers who have accounts with shipping companies would even entertain the idea of acting as a proxy for a transaction like this. It might be worth a nominal fee to at least be covered...would any dealers on here consider something like this?

 

Yes, on eBay. I sell $4K-$12K per month on eBay of coins/currency/bullion. Seems to me there might a void in the market for a 'shipper' with 'insurance for insurance'.

 

Just spoke to another USPS phone representative. They said "money is money" collectible or not. If insurance is paid for on an item, and it is lost in transit, the USPS will not reimburse a claim for a coin/currency/bullion or any other prohibited item....

 

Here is a very helpful eBay article from a coin seller. Worth skimming if you have a chance. REGISTERED MAIL IS THE WAY TO GO! http://www.ebay.com/gds/TIPS-TO-SAFELY-SHIP-COINS-/10000000004572360/g.html

 

Just so you are aware, Registered Mail is no longer Registered Mail once it leaves the US. It's just fancy, expensive looking packaging...

 

This is NOT correct. The USPS regs clearly state that they will honor a claim for the numismatic value of collectible coins. (You may just have to tell them the specific part of the regs)

Sec 609 Claims
4.1 Payable claims
g. For stamps and coins of philatelic or numismatic value; the fair market value is determined by a recognized stamp or coin dealer or current coin and stamp collectors’ newsletters and trade papers. The date of the fair market value determination must be current and prior to the mailing date.

As mentioned above coins sent by Registered mail ARE covered and can be insured up to $25,000 (any other class has a maximum insurance value of $5,000). HOWEVER, once a Registered mail package leaves the US, the MAXIMUM reimbursement drops to $49. So sending a $3,000 coin to Canada will be covered for $3,000 until it enters Canada, then it is only covered for $49.

They are trying to get you with
Sec 609
4.1 Payable claims
o. Except for Registered Mail, the maximum indemnity for negotiable items(defined as instruments that can be converted to cash without resort to forgery), currency, or bullion, is $15.00.

But point out to them that Registered mail is exempt from that restriction. it should be payable for the difference between the value of the damaged set and the undamaged set, or the full value and they keep the damaged set.

Use q on them
q For collectible items, a sales receipt, invoice or bill of sale, or statement of value from a reputable dealer must be provided as described in 3.2a

3.2 proof of value
a Sales receipt, invoice or bill of sale, or statement of value from a reputable dealer.

Since the set is a collectible item, if you can provide proof of value then they may honor the claim. However, you may get hit with the $49 maximum payout for Registered mail because it left the country.

Odd, at the ANA in Chicago last year they did a presentation and at that they said it was open to anyone and made no mention of having to join NACA.

 

It mentions this in their paragraph on the "Member Benefits" page of the ANA's website (scroll all the way down to the bottom) here:

http://www.money.org/membership/join-the-ana/member-benefits.aspx

and I spoke with Elaine (the contact listed there) and she said there is no way around the NACA membership. This is from her email to me:

"Shipandinsure.com is a benefit program for North American Collectibles Association’s members. Our business is set up as a for-profit association and we can only sell our insurance to members. This keeps our rates low, our limits higher than most programs, and our claims process efficient. If we were easily available to the general public, our program would not be as comprehensive and economical for our members. If you are an ANA member, you may join at the introductory rate of $45 to try the program for six months. We would invoice you for the balance of $90 ($135 total per year) in six months. We have very few ANA members not continue with the program."