Instrument insurance question

[SethB]

What sort of insurance, if any, do you have for your instruments and other gear? And if you have insurance, what company do you use and what has been your experience with them?

I ask because I have carried such insurance for the past few years, and I'm wondering if I have a good deal or whether I could do better elsewhere. When I discovered that our homeowners policy had little to no coverage for musical instruments (regardless of whether they were used as a hobby or for gigs), I found Heritage Insurance Services, a Pennsylvania insurance broker that secured coverage through the Hartford Insurance Company in Connecticut.

The pros of such a policy are that for about $250 a year, it covers all my instruments and audio gear at their "replacement cost," rather than the usual "fair market value" amount. And the "replacement cost" for each item was agreed to in advance when the policy was issued, so that if and when a claim is made there's no issue over what the replacement cost is. Plus, I can always increase the replacement costs annually if needed (and if the company agrees with the new numbers). The con is that the policy has a $250 deductible, so the loss of single items like a chorus pedal, a mic or even an amp would not be covered by themselves, unless they cost considerably more than $250. The policy is clearly intended to cover a catastrophic loss, such as a theft of all instruments and gear from a locked car or a gig, or a similar total loss by fire or flood in your home. And the relatively high deductible also probably holds down the premium somewhat. Finally, I haven't had to make a claim to date, so unfortunately, I don't know how the company would respond to one.

So I'd like to know what others have done to deal with this type of situation, and what their experience has been. Thanks in advance for your thoughts! SETH

[Doublea A]

What sort of insurance, if any, do you have for your instruments and other gear? And if you have insurance, what company do you use and what has been your experience with them?

I ask because I have carried such insurance for the past few years, and I'm wondering if I have a good deal or whether I could do better elsewhere. When I discovered that our homeowners policy had little to no coverage for musical instruments (regardless of whether they were used as a hobby or for gigs), I found Heritage Insurance Services, a Pennsylvania insurance broker that secured coverage through the Hartford Insurance Company in Connecticut.

The pros of such a policy are that for about $250 a year, it covers all my instruments and audio gear at their "replacement cost," rather than the usual "fair market value" amount. And the "replacement cost" for each item was agreed to in advance when the policy was issued, so that if and when a claim is made there's no issue over what the replacement cost is. Plus, I can always increase the replacement costs annually if needed (and if the company agrees with the new numbers). The con is that the policy has a $250 deductible, so the loss of single items like a chorus pedal, a mic or even an amp would not be covered by themselves, unless they cost considerably more than $250. The policy is clearly intended to cover a catastrophic loss, such as a theft of all instruments and gear from a locked car or a gig, or a similar total loss by fire or flood in your home. And the relatively high deductible also probably holds down the premium somewhat. Finally, I haven't had to make a claim to date, so unfortunately, I don't know how the company would respond to one.

So I'd like to know what others have done to deal with this type of situation, and what their experience has been. Thanks in advance for your thoughts! SETH

This question is worth a phone call to your agent because from my understanding every policy is different.

Usually, you will want to have enough coverage in the case that everything needs to be replaced due to flood or fire.

In my case, the insurance company knows that I have $XXX worth of professional music equipment and in case of a catastrophe, they will cut me a cheque.

In the case of getting something stolen out of your car, I don’t believe that any house or car insurance covers that.

Either way it is worth a phone call to your agent to insure that you have the best insurance for your particular situation.

AA


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[Ukena]

I use Heritage (inland marine-type of insurance) as well, and had an excellent experience with them. My Martin D-18A had pretty serious damage, and they covered the entire cost of the repair, plus paid me an extra sum that covered the difference between the original replacement cost and the worth of the guitar as repaired (it was bought new).

I have added and subtracted instruments from the policy over time, and always get a prompt response.

[alltunes]

I have added and subtracted instruments from the policy over time, and always get a prompt response.

I use Heritage too and the customer service is excellent, I bought and sold many instruments and pieces of gear over the years and policy changes are addressed promptly through a simple email,

My understanding is that the coverage extends to shipping damage by third party carriers.

[Flat]

I'm with Heritage also. The prices seem fair. I've never had to file a claim though. But their reputation seems pretty solid with the players I know.

[SethB]

Thanks for all the replies and the good info. It helps my confidence level, since you never know if an insurance company is going to come through for you until you have a problem, and then it's too late to switch horses.

And while I think of it, does anyone carry liability insurance, who do you use and how much do you pay for it? I had looked into both single-event coverage and yearly coverage just before Covid hit. We were playing at least two gigs a month, so the $600 cost of a $1 million dollar yearly policy spread out over all those gigs seemed reasonable enough. But then Covid caused all those jobs to evaporate, so getting liability insurance didn't happen. We're still not in a position where we can afford to get that insurance, so I guess we'll just have to try and be more careful! SETH

[Gitfiddler]

Regarding musical instrument coverage, check with your agent again. There are many carriers that automatically cover musical instruments as part of Coverage C (Personal Property/Contents). Contents coverage should be increased if your personal property total value is greater than the policy limit. Also, always maintain reasonable proof of ownership of all of your instruments (and other valuables). In the event of a claim for theft, it is your responsibility to prove that you owned whatever is being claimed.

Also, most personal lines homeowner policies Do Not cover property 'used at any time for business purposes'. If your policy has that exclusion, and you play out for money, then you will not have coverage for your stolen instrument...(even if it is not being used for business at the time of theft).

Ask your agent about a special rider, floater or endorsement for your musical instruments, and if there is a policy that includes 'business use'. Also, make sure that the optional floater endorsement is adequate to cover all of your musical equipment. Finally, ask if the floater is 'all risk' or limited to specific perils (i.e. fire, theft, water, etc.)

If you do incur a loss (fire, theft, etc.) and you make a claim to your insurance carrier, it is YOUR responsibility to prove your claim, not the insurer. And carriers do not simply take your word for what is being claimed.

Heritage Insurance offers a great policy for working musicians or collectors. However, that type of insurance policy may or not be necessary if you find an insurer that offers adequate coverage options for your specific situation.

Bottom line...Educate yourself about insurance BEFORE you suffer a loss.

[SethB]

The suggestion about a possible rider to an existing policy is a very good one.

I tried that route with my homeowners insurance carrier, but was told that they could not issue a rider for musical instruments (or anything else) used in a business. They said they only insured personal property that was not being used commercially. But as you noted, other carriers may be able to do this. SETH

[sgosnell]

I have all my insurance with USAA. The standard homeowner's policy doesn't sufficiently cover instruments, but they do offer a Valuable Personal Property rider for instruments and other valuable property such as jewelry, art, furs, etc. I think the price is reasonable, and my premiums for it are mostly from my wife's jewelry. So far, the premiums have been just money thrown away, since we've had no claims, but that's the way insurance works. I have had claims with USAA over the years for auto and home, and I have no quarrel with how they've handled them. I've been with USAA for more than 50 years, and at this point wouldn't consider any other company. Most people don't qualify for USAA membership however.

[Easy2grasp]

I have a rider on my SafeCo policy. It is no different than if I collected jewelry, furs, or guns. My musical instruments are listed and what I have invested in them. Chances are a fire in the home will be limited to one room unless you live in the boonies. To be safe keep guitars in every room. Tell your wife why.

[Rick5]

I also use Heritage. I haven't had to put in a claim, but they are so easy to work with for the "agreed value" piece.

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