College and Research Libraries


By CHARLES W. MIXER 

Insurance Evaluation of. a 
University Library's Collections 

Mr. Mixer is assistant director of li-
braries, Columbia University. 

T HE Columbia University Libraries have recently co~npleted the regular triennial 
reappraisal of the collections for fire in-
surance purposes. Because of the effective 
teamwork manifested by the six Supervising 
Librarians and the twenty-three Depart-
ment Heads and because of the procedures 
we had developed during the earlier evalua-
tions, th~ reappraising of the three million 
items proceeded with dispatch. Since some 
other libraries may find helpful the methods 
which were followed, they are being de-
scribed below. 

At the time of the appraisal last Febru-
ary, the collections comprised 2, 793,605 
volumes, plus many files of manuscripts, 
maps, clippings, phonograph records, micro-
films, etc. These research materials are 
shelved in 34 d~partrnentallibrar"ies, library 

. dep~rtrnents (e.g., Acquisitions, Cataloging, 
Administration), and in special reading 
rooms. The collections are located in I 2 
buildings, of which all but two (the Medi-
cal Library, I 39,384 volumes, and the 
Optometry Library, 2,3I6 volumes) are 
oq the main campus. Over half of the 
to'tal book holdings are in the Nicholas 
Murray Butler Library (I,772,626 vol-
umes). 

Since the University administration takes 
care of the insurance coverage of the build-
ings, the Libraries are concerned only with 
the insurance of the collections. At the 
time of the I 9 5 I appraisal, the total in-

surance valuation amounted to $I2,237,8o8, 
including the $33I,405 coverage on rarities 
(see Table). 

Jrypes of insurance 

The University carries blanket insurance 
against the hazards of fire, windstorm, 
tornado, hail, airplane damage, and one 
or two minor hazards, on its real and per-
sonal educational property, excluding, how-
ever, property of a fine art nature which is 
more specifically insured. Because of the 
type of construction and the nature of oc-
cupancy of the buildings on the main earn-
pus and at the Medical Center, Columbia 
is eligible for a form of blanket coverage 
which carries no "co-insurance clause" but 
a "stated amount of insurance clause." 
Under this latter clause, if the University 
carries insurance up to the stated amount, 
it will collect the full amount of any loss 
(up to the amount of the insur~nce) re-
sulting from the hazards covered. An 
affidavit signed by the University is required 
by the underwriters every three years to 
determine the stated amount used in the 
blanket insurance form. This figure is ap-
proximately go % of the insurable value 
indicated in the affidavit. 

If a co-insurance clause had been re-
qi.Iired, it would have been necessary for 
the University constantly to watch the 
value of its property since this clause is 
an agreement between the underwriters and 
the assured that insurance would be carried 
up to a certain percentage of the insurable 
value of the property covered. If at time 

18 COLLEGE AND RESEARCH LIBRARIES 



INSURANCE SCHEDULE, FEBRUAR'f 1951 
SUI LOIN& 

1 . VOI..UMH l[. AV. m. VALUE OF ~.OTH£1\ KATfiiAI IV· VALUE OF l~llltl rm R'ti,~fE~F fm TOTAl VALUE. TOTALS VALUE aooKs IKINDS AMOUNT MI~C.MA'fEIUAl5 
SUTLER 5,6~4J,'581 . 25 

ACQUISITIONS - - - - -- 9,52-4 . 00 80o~ OltD~It 0111. 2,3+2 ... 9,52<4.00 
SEIWII..'S 12,009 • 12,090 .00 CATIILOt ~~-~ttgf 1,5'&0.00 - - o'!l,t>So.oo CriFT!> l.E.li.(H . 282,750 • 53, 1~5.75 - - - - - 53,135 .75 
1>9po~it collf'' . 111,000 - 1.29,600 .00 • • 1,<400 .00 - - 1'!11,000 . oo CATALOCr DE PT. 15,000 2 .50 37,500.00 • CATAL06o~ 220 .. ~10 . 00 - - 257,910 . oo 

AOMIIIIHRATIOI'I - - - - 3 1,500 .00 o,soo . oo 
6URCrE55 17 , 309 2 .50 68,272 . 50 POlTUIT I 100.00 - - 68,572 . 50 
BUSINESS llb,720 • 309.800 .00 • • <44,000 .00 • 1,000.00 35-4,800.00 
CARPENTER,ETC 32,592. • 83,52& . 00 • .. 1 S,e.oo .oo - - 99,126 .oo 
CIRCULATION 737,266 2.5'0 1,843,165 . 00 - - - - - 1,94'51 16'.i .oo 
COLLtG-E 3+,610 1 .50 86,525 .00 • • 2,768 .00 - - 89,293 .00 
l.ENOIN6 SERVKE 3,086 2 .50 7,715 .00 - - - - - 7,715 . 00 MIU.O· 
NEWSPAPERS 7, 500 2. .00 15,000,00 ~"·""" 

1,~01 1'2,105 00 - - 27, I05.oo 
PER1001(AL/8ROW!IN6 4,303 • 11,1 oo . oo :~i~. I 150·00 - - 11,1.50.00 
PHilO~OPHV 8,<421 2 .50 21,051..50 - - - - - 2.1,052 .50 
REFEREN<.E. 20, soo ... 120,000 ·00 - - - • 4,250 00 12-4,250.00 
501 . LI8R. SE RVKE 65,328 • 174,511.00 • • 19,500.00 - - o94 10 II 0.0 
LAW OVERFLOW 3'3,000 1 .75 156,750.00 - - - - SEE. SP£C COLL 156,750. 00 
RU~~IAN ARCHIVE - - lit • 11,000. 00 3lll 12,750 . 00 1.~. 750. 00 
PHOTOORAPH OIV. - - - • .. 8 .'190. 00 - - 8,990 .00 SPECIAL COLlECTIONS 1'31,95'1 • 1,809, 381.50 • * 5~ . e~o . oo - 19~.315 00 J,058,53tt.50 Law ruitit's - - - - - 3* 2,100 .00 2,100 .00 

1'\tdiul rarillts :2,000 5. 50 11,000.00 - - - 9. ''· soo .oo J.2,5oo.oo 
Mtdical <.AN<ER 1.'l39 • 55 , 095 .00 - - - - 55,095. 00 

AVERV 928,0'\0.00 
.-..vERY 50,866 15 .00 762,990.00 .. • ~1,800 . 00 • 59,2'50 . 00 88i,O"O 00 
WARE 1,200 15.00 18,000. 00 • • 26,00000 - - 44,000 00 

CMA ITALIANA 53, 5i5.oo 
l'ATERNO 21,'\18 :2.50 53,5+5.00 - - - - - 5'3,54500 

CH"NOLER 168,774.00 
CHEMI~TRV 28,129 6 .00 169,774 .00 - - - - - 169,774 .00 

JOURNALISM 
8,030 JOU~NALISM 3 .00 2'tj090.00 • 

2'37,~95 75 

* 107,842 .00 - - 1'31,932 00 
MUSIC 19,881- .. 70,32i . 50 • *' 35,1'39.'15 - - 105,46'5. 75 

KENT 
4 .75 8 , 150 00 

1,'161,011.00 
LAW 295,2.76 1,402,561..00 • • 50,300.00 7* 1,<461,011 . 00 Stul~o SP£C(OLL"i 

LOW f,266,8:l2 .oo 
COLUMaiANA 12,000 • 70,000.00 M~S. Etc - 30,000.00 - - 100,000. 00 
EAST ASIATIC 193,01'1- • 530,031 7~ • • 60,096 .:25 • 3~,715' 00 624,8'\3.00 
ENCiiNEER.'G- ETC 67, 6H * i20,JH .oo * ~ 18,035 oo - - 438 , 179 . 00 
MATHEMATICS 1'3.000 - "15'.500 .00 • • 1,050.00 - - ~~· s~g:gg AH .I>IATH .SOC.LI8RAII.Y 13 000 "''~;;~\~ 57.~ 50.00 

MINE5 TRAOE 
27,952 .00 

361,378 .00 
EG-LESTON 55,571 6 .00 333,4'16 .00 CATAL06 279,5H• - - 361,~78 .00 

PUP IN 5.2,37"'t . OO 
PI-IYSICS 8,729 6 .00 52,37+.00 - - - - - 52,'371 .00 

S<HERMERHORN 770,515'.00 
A611.1/ZOOL./80T 21,000 ...... 75 99,75'0 .00 • • 670 .00 - - 100,1.2.0. 00 
GcOL/ MAPS ott5,5oo 4 .75 216,125 . 00 * • 30,650.00 - - 2'16, 775 00 
PSYCH/MTHR 1'1-,460 4 75 6B,685.oo • ft '\2,920 .00 - - 111,605 00 

···~ 

FINE ARTS 20,558 15.00 '308,370.00 • il 1,500. 00 2* 1875 00 311,745 . 00 

Tf?.I~hs 2,'-51,905 9,71&,&83.50 886,377 50 !>31,-405 .00 10,934,%6 .00 10,934,406.00 
MEOitAL 1,287,874.00 

M£01CAL 1'39,384 * 1,2'30,0"t9.00 * • 57,825 00 - S£l SPEC. (OLL~ . ,I<ITilJ 1,287,87-t.oo 
OPTOMETRY 15,i68 . oo 

OPTOMETRY 2,'31& • IS,-t&S .oo - - - - -- 15,'168.00 
G-RAND 

2,79'3,b05 10,%2,200.50 91i,102 .50 '3"31,405.00 12,2~7,808.00 12,2'37,808.00 TOTAL 
*SEE DEPARTMENT LISTS FOR DETA.ILS 

COLUMBIA UNIVERSITY LIBRARIES FIRE INSURANCE EVALUATION, 1951 

JANUARY~ 1952 19 



of loss it were shown that this had not 
been done, the assured would become a co-
insurer for the deficiency. If, on the other 
hand, the co-insurance clause had been com-
plied with, the assured would then receive 
the full amount of the loss up to the amount 
of the insurance. 

It has been recognized by the University 
t·hat some items of a fine arts nature are 
subject to losses by burglary and theft. The 
University has therefore excluded these 
items from the blanket policy and has 
brought them under a policy granting practi-
cally all risk protection. The property of 
the Libraries listed under this policy was 
_valued at $331,405 at the time of the 1951 
appraisal. This included all items of fine 
art nature (rare books, incunabula, manu-
scripts, etc.) each of which is individually 
listed and each of which is valued at $500 
or more. . Examples of the holdings in-
cluded under this policy are Milton's 
Paradise Lost ( 1669), $500; Stokes' I con-
ography, 6 vols., $6oo; Townsend Civil 
War Clippings, 126 vols., $5oo; Calandri 
Aritmetica ( 1491), $750; and oriental 
rugs, silk (Smith), 2 at $1,500 each. 

A subsidiary matter connected with Fine 
Arts policies may be of interest to some li-
braries and that is in connection with . the 
insurance coverage on collections or sets of 
books, manuscripts, etc. The usual practice 
is simply to indicate the value of the set 
as a whole, as was shown above in the case 
of Stokes' Iconography. As the University's 
insurance broker pointed out, however, in 
the event of the loss of one volume of a 
set, the underwriters would try to limit 
their liability to the pro rata value of that 
item. If all of the volumes of a set were 
of equal value, the pro rata payment would 
be satisfactory. It sometimes happens, how-
ever, that due to the fact that one of the 
volumes of a set is made up of plates or 
maps, or due to other reasons, a volume will 

have a much greater value than the pro 
rata amount. In order to avoid possibly 
lengthy discussions with the underwriters 
in the event of loss or damage to such a 
volume, .it is advisable to list the values of 
the individual volumes of a set where the 
worth of the individual volumes is not an 
equal proportion of the worth of the entire 
set. 

An alternative suggested by the U niver-
sity's insurance brokers and which the Li-
braries . have adopted for the coverage of 
41 important sets is to have the Fine Arts 
policy endorsed with the following clause: 
"It is understood and agreed that in the 
event of the total loss of any article or 
articles which are part of a set, this Com-
pany agrees to pay the Assured the full 
amount of the value of such set as specified 
in the schedule attached, and the As~red 
agrees to surrender the remaining article or 
articles of the set to this Company." It is 
customary, although not obligatory, under 
this clause for the assured to buy back from 
the insurance company, at an agreed price, 
the remaining article or articles which com-
prise the pair or set. The University's 
insurance brokers recommended the use of 
this clause for the added protection which 
it gives. The provision is of special useful-
ness in those instances in which the loss of 
one or more volumes would seriously impair 
the worth · of an entire set. This is par-
ticularly true when, after receiving pay-
ment, one would be able to purchase a com-
plete set as a replacement. 

Evaluation procedure 

About six weeks before the triennial re-
appraisal of the insurance value of the 
Libraries' collections was to be completed, 
mimeographed forms were sent in duplicate 
to the Department Head in charge of each 
of the departmental libraries and to others 
who had books, manuscripts, records, or 

20 COLLEGE AND RESEARCH LIBRARIES 



card catalogs under their supervision which 
were currently insured or, if not, which 
should be insured. These forms called for 
up-to-date data on the following points: 

A. Books to be insured under the blanket 
policy 
I. The number of volumes 
2. The average insurable value (see be-

low for an explanation of this) 
3· The value of the books (the num-

ber of volumes times the average in-
surable value) 

B. Other materials 
I. Kinds (e.g., card catalogs, portraits, 

microfilm readers, manuscripts, etc.) 
2. Amount of such materials (e.g., 

2,301 microfilms, 15,600 catalog 
cards, 279,516 trade catalogs, etc.) 

3· Total value of these materials 
C. Rarities 

· I. The number of rarities 
2. The value of the rarities (a list 

containing the author, title, and value 
of each item was asked for) . 

D. The total value of all items being in-
sured (the sum of A3, B3, and C2) 

Department Heads who have under their 
supervision collections which are shelved in 
more than one building were asked to list 
their information according to the building 
in which the collections were located. This 
was done to facilitate the preparation of the 
final composite evaluation report in which 
total insurable values have to be given by 
buildings due to the fact that the insurance 
rate varies with the degree to which the 
various structures are fire resistant. One 
copy of the mimeographed form was then 
returned to the Assistant Director and the 
other was retained for the departmental li-
brary's files. 

After the basic data on the forms were 
examined and verified where necessary, the 
lists of rarities were checked over in detail 
with the insurance broker, a comparison be-
ing made with those in the previous triennial 
evaluation (a) to make sure that those in-
cluded before were likewise included this 

JANUARYj 1952 

time (or were otherwise accounted for) 
and (b) to make sure that any rarities which 
had been acquired and insured during 
the preceding three-year period were now 
brought on to the main lists. There were 
changes to be made too, since in some in·-
stances the Supervising Librarians had re-
quested that certain items be removed from 
the Fine Arts policy for inclusion instead 
under the blanket insurance policy. In 
other cases they had requested that the 
valuations of certain rare items be raised 
or lowered in the light of their knowledge 
of the current market value of the particu-
lar items. 

The final step was the typing of all of 
the data in official form and the preparing 
of the evaluation chart on which one could 
see in concise form the data submitted (a) 
by types of material and (b) by building 
in which the materials are .housed. Copies 
of the typed report and of the cha-rt were 
forwarded to the appropriate administrative 
officers of the University, including one 
copy which would be sent on to the in-
surance broker for the making of the changes 
in the insurance coverage necessitated by the 
reappraisal. The entire set of report forms 
from the departmental librarians was micro-
filmed for safety reasons and the project 
came to a conclusion. 

Determination of insurable values 

Reference was made above to the term 
"average insurable value" in connection 
with books which were to be insured under 
the blanket policy. In general, the means 
for arriving at this figure is to estimate the 
average present-day purchase price of vol-
umes in a given subject field and to deduct 
from this an average amount for deprecia-
tion and/or obsolescence. Therefore, these 
"average insurable values" are usually be-
low the relatively high current purchase 
price of most publications. On the other 

21 



hand, there are factors which will tend to 
raise the "average insurable value" in some 
subject fields. For example, the appraising 
of volumes in the Chemistry, Physics, and 
Engineering Libraries is complicated by the 
fact that there is a higher proportion of 
periodicals in those libraries and by the 
fact that periodicals . in those fields (as well 
as in medicine) tend to appreciate in value 
rather than depreciate with the passage of 
time. Books in the fields of fine arts and 
architecture have higher insurable values 
than those in the other subject fields because 
their large formats, abundant illustrations, 
and expensive coated paper cause a high 
initial purchase price and because the small 
number of copies printed results in an ap-
preciation in their monetary value. 

It is advisable, of course, to redetermine 
the "average insurable values" which are 
to be used when each re-evaluation of the 
collections ·is made, taking into account cost 
changes which have taken place since the 
previous evaluation was made. That was 
done when the Libraries made the I 9 5 I 
evaluation, with most of the "average in-
surable values" being raised slightly. Those 
used were as follows : 

General books 
Scientific books in general 
Engineering, Chemistry, and 

$ 2.50 per vol. 
4· 7 5 per vol. 

Physics books 6.oo per vol. 
Law books 4· 7 5 per vol. 
Medical books 5.50 per vol. 
Medical periodicals 12.00 per vol. 
Architectural books 15.00 per vol. 
Fine Arts books 15.00 per vol. 

The "average insurable value" for all 
non-rarities was $3.92 per volume in I95 I, 
as compared with $3.I4 per volume in I947· 

As to the insurable values of the non-
book materials, these were likewise deter-
mined in general on a present-day cost less 
depreciation basis, e.g., microfilm reading 
machines, photographic equipment, etc. 
Microfilms were appraised at · $5.00 to 

$6.oo a reel. Of major importance in this 
category, however, were the card catalogs. 
The basis for evaluating them was (a) the 
cost of the card stock and (b) the cost of 
the personnel which would be involved in 
duplicating the cards and in filing them in 
the catalogs. It does not include the actual 
cost of cataloging. This worked out to 
estimates of $.IO per card, with the excep-
tion of the East Asiatic and the Music 
Library catalogs which were at the rate 
of $.20 per card, and the shelflist which 
was at the rate of $.05 per card. 

The resulting insurance coverage on the 
major card catalogs was as follows: 

Public catalog 
Shelflist 
Avery architecture catalog 
Business Library catalog 
East Asiatic Library catalog 
Law Library catalog 
Medical Library catalog 
Music Library catalog 
Serials, Official, catalog 
Cards from Other Libraries catalog 

TOTAL 

$130,000 

51,740 

25,500 
22,000 

50,000 

50,000 

27,200 

15,000 

20,400 

18,270 

$410,110 

The valuation for the public catalog is 
far lower than it would ordinarily have 
been for a total of 3,400,000 cards, due 
to the fact that the entire catalog, plus 
additions to it excepting for the last two 
years, has been microfilmed. Had the pub-
lic catalog not been microfilmed, a markedly 
higher valuation and premium would have 
resulted because it would have been neces-
sary with this catalog to figure in the cost 
of cataloging too. In a recent cost analysis 
that we made, we found that an average 
set of eight multilithed cards made for books 
cataloged in the General Cataloging Divi-
sion cost $. 79, including the time spent by 
the cataloger. To this would have had to 
be added an estimated $.56 per set of eight 
cards to cover the cost of filing them in 
the catalog, making a total cost per set 

22 COLLEGE AND RESEARCH LIBRARIES 



amounting to $1.35. Assuming for present 
purposes that the 3,400,000 cards in the 
public catalog were made up of approxi-
mately 425,500 eight-card sets, the insurance 
coverage placed on it should have been at 
least $57 3, 7 50 instead of $I 30,000, if the 
catalog had not been microfilmed. 

Although reduced insurance premiums 
result if the card catalog is microfilmed, 
the main gain comes from the savings in 
the cost of reconstructing the catalog if the 
present one were destroyed. 

Insurance coverage on b.ooks away from 

the University 

The blanket insurance .policy and the 
Fine Arts policy described above provide 
insurance protection while the books are 
in the Libraries. The former does not 
provide coverage while the books are away 
from the University but the Fine Arts policy 
does, with the protection limited to IO% of 
the total amount of the policy. Thus with 
the $33 I ,405 coverage on the Fine Arts 
policy, $33,I40 worth would be fully pro-
tected while off campus. 

Since the major off-premises concentra-
tion of the Libraries' books and periodicals 
is at the commercial binderies, an investiga-
tion was made to see whether the binderies 
carried adequate fire insurance and sprinkler 
leakage insurance to cover the maximum 
number of our publications which would 
be apt to be in their plants at any one time. 
Two of the three binderies which Columbia 
utilized carried insurance and their in-
surance pplicies were examined by the U ni-
versity's insurance brokers. Minor changes 
which the latter suggested were gladly made 
by the binderies. Although the third bind-
ery did not carry insurance against fire and 
sprinkler damage to Columbia's property, 
it took out a policy immediately. 

The above-described action was initiated 
three years ago. In the meantime, the Li-

JANUARY~ 1952 

braries have begun to utilize a fourth bind-
ery for handling certain specialized types of 
binding work. That company had an in-
surance policy covering the property of all 
of its customers. 

With four binderies doing work for Co-
lumbia and with each of them having in-
surance policies which contained varying 
clauses, the University's insurance broker 
recommended that the University take out 
its own policy which would provide uni-
form conditions of coverage at each of the 
four binderies. Inasmuch as this would not 
only give the desired breadth and uniformity 
but would also assure a prompter settle-
ment of our claims in the event of a loss, 
the University took out such a policy. Al-
though the University has paid the premium 
this first year, we shall ask the binderies to 
cancel their present insurance coverage on 
our property when their policies come up 
for renewal next spring and instead to pay 
their proportionate share of the premium 
on our policy. We anticipate that they will 
readily agree to do so, especially since this 
will in most instances enable them to save 
some money in premium payments due to 
the advantageous insurance rate which the 
University has. 

Insurance rates 

There is a natural interest in how much 
such blanket insurance and Fine Arts in-
surance cost. Since the insurance rates are 
determined (a) by the modernity and de-
gree of fire-proofness of the buildings in 
which the publications are shelved and (b) 
by the amount and type of fire-fighting 
equipment which is available in the com-
munity, such information can best be secured 
through local insurance brokers or agents. 

One practice, however, which will help 
to keep the rates to a minimum is to have 
periodic inspections made of the buildings 

(Continued on page 29) 

23 



b. Separately insured with or without a 
microfilm. (In the latter instance, much 
more insurance is required. We decided 
that three years' premiums would be so 
much greater without the protection 
afforded by a film that the film would 
pay for itself in that time). 

Some of the per volume insurance values 
in Column 7, Table I, may appear high 
in comparison with some of the insurance 
values suggested by ALA, but considera-
tion of two factors should modify this im-
pression. First, one should compare the 
figures in Column 7, Table I, with the 
corresponding figures in Column 3, Table 
III, the latter being the present cost (after 
substantial discounts) of books purchased 
by this library. Secondly, there are _many 

valuable books standing on the general 
shelves of the Grosvenor Library which 
have been covered only by the sampling 
technique. In 19 50 alone, we transferre~ 
twenty-five titles with a total value of 
$3300.00 from our general collection to 
the Rare Book Room. This project, which 
has only been started, is continuing with 
equally impressive results. 

Sequence of Tables 

With this general introduction, it 1s 
hoped that the tables with their accompany-
ing notes will be largely self-explanatory. 
It is suggested that Table I be read through 
Column 5; then Tables III and IV in their 
entirety; and finally, Columns 6-8 of Table 
I, and Table II. 

Insurance Evaluation of a University Library's Collections 
(Continued from page 23) 

in which library property is located for 
the purpose of keeping waste paper, pack-
ing boxes, and other inflammables cleared 
out. 

Conclusion 

In insuring a university library's collec-
tions, the primary consideration is the secur-
ing of coverage which, in the event of the 
loss by fire of all or · part of the holdings, 
would provide funds for the replacement 
of the items lost, at or close to present 
purchase costs. The rarities and other i terns 
of high monetary value should be given all-
risk protection by being placed under a 
Fine Arts policy. To secure the maximum 
benefits which may be desired and to secure 

JANUARY, 1952 

them at the lowest premium rate which 
will be con~istent with security, it is advis-
able to keep in close touch with a reputable, 
experienced insurance broker, agent, or firm. 
By so doing, helpful counsel will be assured 
during the planning stage, during the evalu-
ation, and during the later months and years 
whenever . problems connected with in-
surance arise. 

The responsibility laid on the Librarian 
for computing the insurance values of the 
collections of a large library is heavy. How-
ever, with teamwork by the staff specialists 
in the various subject fields and: with expe~ t 
insurance counsel, a sound insurance pro-
gram which will provide reasonable pro-
tection against all major risks can readily 
be worked out. 

29