The fire didn’t burn the cards, but the heat melted the plastic PSA slabs into the cards, fusing them into a brick of plastic and foil. I had a standard homeowners policy. The adjuster tried to apply depreciation, arguing that since the market for this set had dipped since 2021, he would pay me today’s lower “Actual Cash Value.” I lost $20,000 in value because I didn’t have Agreed Value coverage.
Key Takeaways
- Plastic Melts Fast: Slabs warp at relatively low temperatures. Fire in the room next door can ruin a collection without touching it.
- ACV vs. Agreed Value: Standard policies pay Actual Cash Value (Replacement cost minus depreciation/market fluctuation). If the market crashed, you get the low number.
- Agreed Value Locks It In: Specialty collectors insurance pays the value you listed on the policy, regardless of today’s market dip.
- Smoke Damage: Even if they don’t melt, smoke smell permeates card stock. “Smoked” cards are essentially worthless to collectors.
The “Why” (Market Volatility)
Collectibles fluctuate. Homeowners policies protect against physical loss, not financial market loss.
“We will pay the lesser of the limit of liability or the market value at time of loss.”
The Investigation: The Heat Test
I checked how different policies handle a total loss fire.
1. State Farm (Homeowners)
- Payout: Market Value at time of loss.
- Risk: If you bought a card for $10k in 2021, and it’s worth $4k in 2026, they pay $4k.
2. Wax Insurance (Specialty)
- Payout: Agreed Value.
- Benefit: If you insured it for $10k and paid premiums on $10k, they send you $10k. They don’t care that the market dropped.
3. Safe Storage
- Benefit: Fireproof safes (UL Class 125) are needed for media/plastic. Standard document safes (Class 350) get too hot inside and will melt slabs.
Comparison Table
| Policy Type | Valuation Method | Payout on $10k Card (Now $4k) |
| Homeowners | Actual Cash Value | $4,000 |
| Specialty (Agreed) | Agreed Value | $10,000 |
Step-by-Step Action Plan
- Check Your Safe Rating: Go look at your safe. Does it say “UL 350”? That keeps paper from burning but allows internal temp to hit 350°F. Slabs melt at ~200°F. You need a data/media safe.
- Switch to Agreed Value: For volatile assets like crypto or modern sports cards, ACV is a gamble. Agreed Value is a hedge.
- Seal the Slabs: Store slabs in “Perfect Fit” sleeves and then in silicone-sealed cases. It helps protect against smoke (but not heat).
FAQ
Does the smell of smoke count as a total loss?
Yes. You cannot sell a card that smells like a campfire. Fight for a total loss payout.
[IMAGE: Photo of a warped, blackened PSA slab with the card visible but ruined inside]