I bought a $2,000 vintage pack. While cutting the wrapper with scissors, I slipped and sliced the top edge of the hologram card inside. I turned a $5,000 card into a $5 card in a split second. I called my insurer to claim “Accidental Damage.” They asked, “Was the item being worked on?”
Key Takeaways
- The “Workmanship” Exclusion: Many policies exclude damage caused while the item is being repaired, restored, or worked on. Opening a pack can be interpreted as “working on” the item.
- Handling Coverage: High-end “All Risk” policies (like CIS) often cover accidental damage during handling. Homeowners policies almost never do.
- Proof of Condition: For a card inside a pack, you have zero proof of its condition before you cut it. The insurer can argue it was already damaged inside the pack.
- The Deductible: Even if covered, does the damage exceed your deductible?
The “Why” (Negligence vs. Accident)
Insurance covers you against the world (fire, theft), not against your own lack of dexterity.
“We do not cover loss caused by… processing or work upon the property.”
The Investigation: Butterfingers
I checked policy wording for “drops and mishaps.”
1. Collect Insure
- Wording: “Accidental Direct Physical Loss.”
- Reality: If you drop a slab and it cracks, they pay (re-slab fee). If you cut a card? It’s a grey area. They might pay, but expect scrutiny on the value (how do you prove it was a 10 before the cut?).
2. Homeowners
- Wording: Named Perils (Fire, Theft).
- Reality: Denied. “Clumsiness” is not a named peril.
3. Wax Insurance
- Wording: Designed for sealed product. Once you open it, the “Sealed” coverage ends. You are creating a new item.
Comparison Table
| Scenario | Homeowners | Specialty “All Risk” |
| Dropped Slab (Cracked) | No | Yes (Re-slab fee) |
| Scissored Card | No | Maybe (Hard to prove value) |
| Spilled Coffee on Card | No | Yes |
Step-by-Step Action Plan
- Use a Rip Tool: Don’t use scissors. Use a pull tab or carefully pinch the seal.
- Video the Rip: If you claim the card was damaged inside the pack (factory defect), you need video proof to claim against the seller/manufacturer (not insurance).
- Upgrade to “All Risk”: Ensure your policy covers “Accidental Damage,” not just “Named Perils.”
FAQ
What if the card came out damaged (Print Line)?
That is a manufacturing defect. Insurance does not cover quality control issues.
[IMAGE: Close up of a trading card with a scissor cut on the top border]