Susan,

I was asked the same from our institution and it is a very difficult task. 

I posted the responses to the listserv a while ago. Here are the responses I received once again. 

I hope this helps.

Karen

Karen,

In response to your ListServ query, before you go to the trouble of determining a value, please ask the insurance agent, or your university's risk manager to tell you the basis for payment in the event of loss.  Typical choices are:

1)  "replacement cost" -- a moot point for irreplaceable manuscript collections;

2)  "guaranteed replacement cost" - the company will pay replacement even if it exceeds the limit of insurance;

3)  "actual cash value" -- also a moot point since it begins with replacement cost; depreciation is applied to the "replacement cost", thus, for old papers, the loss payment would be about zero;

4)  "cost to replace blank media and reproduce data" -- this is generally used for "Valuable Papers" which actually refers to what we would call disaster recovery back ups and items such as deeds, blueprints, etc.; risk managers/insurance buyers at some institutions and some insurance agents don't understand that our archival collections are not the same type property as the insurance term "Valuable Papers";

5)  "agreed amount", "Agreed value", or "stated amount" are typically used interchangeably - you and the insurance company "agree" that your collection is worth x dollars; normally you would come up with the figure; this is generally the valuation choice most suitable for archives;

6)  "fair market value" - rarely used in insurance terminology and is basically the same valuation process as # 5;

7)  Some other valuation, and, if so, what.

 

As to establishing the value, I doubt that anyone can give you a foolproof formula for determining the value of archival collections.  Here are some considerations.  It may help to list collections or portions thereof in relative valuation categories:  intrinsic value, informational value (e.g. oral histories), convenience value (probably your subject and biographical files).  The first one may be the only one worth placing a value on.  Ask yourself if any of the items can be found elsewhere or if the information could be reconstructed from other sources. Do you have items with individual historical value, e.g. with Pasteur's signature, or is the value solely in the information contained in the collection?   Even if the information is unique, is it truly valuable - would anyone pay a nickel for a professor's class notes?  Would a researcher ever use them as a significant part of their publication?   I believe we sometimes think that a collection is valuable only because it exists nowhere else.   Is a collection worth anything if no one uses, or is likely to use, it?  Is it likely that a willing buyer can be found within a reasonable period of time?   If not, then perhaps we shouldn't even bother to determine a value for that collection or for portions of it.  

 

That said, there is probably some value to your institution's prestige by having your archive and certain collections.  Can your admissions department perhaps give you an idea of the number of students whose decision to attend your university is determined in part by the existence of your archive?  Can the faculty search committee(s) tell you how often your holdings are a factor in a professor's decision to join your university?  Can your development office supply data showing donations received at least in part because you have certain collections?   In accounting methodology, "goodwill" is an asset that reflects the worth a company derives from its name recognition, business practices, and other intangibles.  If your university has a CPA on staff, perhaps in the finance department, maybe they could contribute their ideas about equating the "goodwill" value of your archive into a dollar figure.  Add that to whatever intrinsic value you develop for specific collections or items.

 

Some collections or items may be so rare that it would be worth having an appraiser evaluate them.  

a) often a donor will have obtained an appraisal for their tax purposes and will provide a copy to the institution; 

            b) state museums usually have a list of qualified appraisers they are willing to share;

            c) professional trade organizations such as the American Society of Appraisers http://www.appraisers.org/  and the International Society of Appraisers http://www.isa-appraisers.org/ have databases searchable by type of property and location;

            d)  some large universities have lists of appraisers on their websites, such as University of Virginia http://www.lib.virginia.edu/small/services/appraiser.html and University of North Carolina http://www.lib.unc.edu/mss/appraise.html and Johns Hopkins http://www.library.jhu.edu/collections/gifts/appraisers.html;

            e) Antiques Roadshow maintains links to appraisers affiliated with their program, for example http://www.pbs.org/wgbh/pages/roadshow/series/appraisers/f-k/kiffer.html and http://www.pbs.org/wgbh/pages/roadshow/series/appraisers/l-r/massey.html.

 

A few other tips: 

i)  insure your replaceable items such as archival boxes, copy paper, mylar, tools, shelving, etc. as a separate item from your collections, preferably for "replacement cost";

ii)  make archival copies of as much as you can afford to do; scan photographs; copy audio/video tapes; and, whether paper or electronic, keep at least one copy off-site in a secure location if possible; at least you can save the informational value even if the original item is gone and perhaps you won't need to worry about setting a high enough value on the originals;

iii)  multiply whatever value you come up with by a percentage to account for inflation between the time you establish the value and the end of the policy term;

iv)  be sure the policy has a provision for automatic adjustments (or set a higher initial limit) to take in to account new collections that may come in during the policy term, so you don't have to remember to call the agent and request an endorsement increasing the limit of insurance every time. 

 

Best of luck!

Nancy

 

P.S.  If you find this helpful, please let me know and I will post it to the ListServ.

 

 

Nancy Adgent

Project Archivist

Rockefeller Archive Center

[log in to unmask] 

914-366-6355

15 Dayton Avenue

Sleepy Hollow, NY  10591

 
Karen,

 this may not be useful to you, but an appraiser told me in the 
mid-1990s that a good general rule for pricing manuscript collections is 
$1/page, which can be calculated by counting the leaves in a typical 
inch of papers from the collection.

You might want to post this query also on ALHHS-L.

Cheers!

Eric

Eric v.d. Luft, Ph.D., M.L.S.
Curator of Historical Collections, Health Sciences Library
Lecturer, Center for Bioethics and Humanities
SUNY Upstate Medical University, Syracuse, NY 13210
<http://www.upstate.edu/library/history/> -- 315-464-4585
Owner, Gegensatz Press <http://www.gegensatzpress.com/>

Karen, this may not be useful to you, but an appraiser told me in the 
mid-1990s that a good general rule for pricing manuscript collections is 
$1/page, which can be calculated by counting the leaves in a typical 
inch of papers from the collection.

You might want to post this query also on ALHHS-L.

Cheers!

Eric

Eric v.d. Luft, Ph.D., M.L.S.
Curator of Historical Collections, Health Sciences Library
Lecturer, Center for Bioethics and Humanities
SUNY Upstate Medical University, Syracuse, NY 13210
<http://www.upstate.edu/library/history/> -- 315-464-4585
Owner, Gegensatz Press <http://www.gegensatzpress.com/>


Wow!  Well, of course, most of what you have in archives if probably
irreplaceable.  So, that's hard to valuate.  I can tell you what at my last
institution our storage facility (owned by a university consortium) was
charging for what they thought were lost boxes (things that we had checked
out of the system for longer than the system liked) - $125 per box.  I mean,
the reality is that what you have you likely can't duplicate, so you just
have to come up with some number that if you ever had to start again, you
could make some attempt to do so.
Good luck!

Anna K. Heran
Archivist
Lloyd Library & Museum
917 Plum Street
Cincinnati, OH 45202
513-721-3707
-----Original Message-----
From: Archives & Archivists [mailto:[log in to unmask]] On Behalf
Of Karen Peterson
Sent: Wednesday, March 29, 2006 10:57 AM
To: [log in to unmask] 
Subject: Valuation of archives collections: may I ask again?

Colleagues,

I have been asked to valuate our archives collection for insurance purposes.
Our collections consist of a Medical Museum, historical photographs,
manuscripts and personal papers, subject and biographical files, oral
histories, ephemera, etc.

It was previously suggested that I check on E-Bay to see what comparable
items are selling for. With the size and uniqueness of our collections I
find this unpromising.

I have only been able to locate one article, The Appraisal of Manuscripts:
Theory and Practice Henry Bartholomew Cox, Ph.D., J.D., ASA  from the
American Society of Appraisers, dated from the 1980's. 

Has anyone been asked to produce the same type of information? If so, could
you point me to publications that would aid in the theory and practice. If
this is an impossible feat or is just not done, could you tell me that, as
well.

Thank you,

Karen

Karen Lea Anderson Peterson
Senior Research Assistant
Archivist
Oregon Health & Science University
3181 SW Sam Jackson Park Road
Mail Code: LIB
Portland, OR 97239-3098
Email: [log in to unmask] 
Telephone: 503-494-3239
Fax: 503-418-0235

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Hi, Karen--

Your question about appraising collections for insurance values has been 
often discussed on Exlibris, another discussion list that concerns rare 
books.  The consensus seems to be that the only way to do such a process in 
reality is to get people to appraise parts of the collection (high spots, 
samples, etc.) and then project a total value from that figure.  It's almost 
impossible to evaluate everything in a collection that is of any size at 
all, although it really could be done given enough time and money.  After 
you've gotten the initial value, then you usually add a number every year 
(say 5%) to account for inflation, etc.  One important consideration, no 
matter what route you choose, is to get a qualified appraiser; staff 
opinions rarely count.

One ironic situation in some of the institutions that ask for insurance 
appraisals is that they really have no collections insurance in the first 
place.  They're all self insurers with no insurance except for property 
insurance.  They have no collections insurance and don't intend to buy any, 
mostly because the premium is breathtaking.  That is especially true of 
state institutions.

Best,
Everett

Everett Wilkie
2006 Carey Road
Kinston, NC 28501
[log in to unmask] 
252-522-0261
Cell:  860-712-4421
"The inattentiveness of librarians is a great help to the book trade"
--Randolph G. Adams

 Here is the information on the article in the Valuation Index. Attached is my communication with ASA



Valuation Index 


Volume   Issue                          Title                                                                                        Author 
     26          1        The Appraisal of Manuscripts: Theory and Practice       Henry Bartholomew Cox, Ph.D., J.D., ASA 


Dear Ms. Peterson,

 

Thank you for your request.

 

You can purchase the Valuation issue that contains your article for $20.00.

 

We accept American Express, MasterCard,  VISA and checks.   All orders must be prepaid.  Orders are shipped UPS Ground.

 

Please let me know how you would like to proceed.

 

Laura Wood 

Publications/Administrative Assistant
American Society of Appraisers

555 Herndon Parkway, Suite 125

Herndon, VA 20170

Toll Free: 800-272-8258

Direct: 703-733-2129

Fax: 703-742-8471

www.appraisers.org 


Karen Lea Anderson Peterson
Archivist/Senior Research Assistant
Historical Collections & Archives
Acquisitons Assistant
Oregon Health & Science University
3181 SW Sam Jackson Park Road
Mail Code: LIB
Portland, OR 97239-3098
503-494-3239
503-418-0235 (fax)
[log in to unmask]
ohsu.edu/library/hom


>>> "Susan F. Walker" <[log in to unmask]> 5/31/2006 6:58 AM >>>
I apologize if this topic has been covered in the past but I'm going to
throw it out there.
 
My University has asked for the value of the contents of my Library and
Archives.  The State Risk Management division is soliciting quotes to
purchase a stand-alone Fine Arts Insurance Policy.  They want to know
the value of items such as library books, records, valuable papers,
paintings, etc and similar property of rarity, historical value, or
artistic merit.
 
The Library materials are fairly easy to value - but archives?  My
first thought is to value them as "priceless" but I doubt they would be
amused.  Have any of you had to file such a report?
 
Susan F. Walker
Fire Protection Publications Library and Archives
Oklahoma State University
 
 

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