Home Owners Insurance for Equipment

[Jeff Hyman]

Do any of you carry a separate rider on your home owners insurance policy to cover your musical equipment that you take to a gig?

[Ray Montee (RIP)]

Regardless of what a local insurance sales agent might say, an insurance carrier will likely refuse any claim for which they lack an authentic appraised value, prior to the loss/claim and secondly; they likely will deny coverage for any expensive items for which they did not collect a premium.

Sometimes, if it were not claimed a 'money maker' for the insured; nor, a vinage collector's item and there were not more than one, they MIGHT pay out in the event of a loss.

[Gary Lee Gimble]

I have a rider Jeff, call me.

[Cameron Tilbury]

Anyone in the UK have any thoughts on this?

[Rick Campbell]

Don't assume that it will be covered. I think if you play out and get paid to play, even though not often, you are considered a professional in the eyes of the insurance company. This takes your equipment from the personal status to the business equipment status and requires a different kind of policy. Of course, if you don't have a claim it doesn't matter. But, if you do, you might find yourself high and dry.

This policy requires you to document, up front when you buy the policy, the value of the equipment via receipts, appraisals, etc... and you pay a premium based on this declared value.

You should discuss this with an agent now. After you have a claim will be too late.

[Ron Sodos]

Very affordable and they specifically cover professional music equipment.

[Roger Rettig]

I'm with Marsh & Co (through the AFM). I have around $25,000-worth of equipment covered in my home, and I'm permitted to take up to $10,000 away with me in the car for work. I've inquired, and I'm told that it's covered in a locked car overnight, 'though I wouldn't want to count on that one!

This costs me around $240 per annum. I have provided serial #s and photos of each item. I was unable to get coverage on our State Farm home policy, by the way. They wouldn't cover my collection of scale locomotive models, either, despite my specific list, prices and photos.

(State Farm are now pulling out of FL home insurance - I dunno what we'll do next!)

[Jeff Hyman]

The 3 R's... Rick, Ron and Roger were on the money!

I kept my original post short and sweet. I'm refinancing my home with a new lower interest rate, and they want to confirm I have a valid Home Owners Insurance policy. It was when I was talking to my Allstate agent where I decided to get a refresher course on where I stand around coverage for all my musical equipment, guns, jewelery and other valuables. Interestingly, once you get paid to play the rules change around musical equipment. The good replies here confirm what I was thinking.

1. Accurate list with photos.
2. Serial Numbers
3. Source of replacement value.
4. Itemize everything.

This info would be part of a seperate rider only for the equipment taken from the home that generates income. The 2nd set of equipment in the basement for practice, and any equipment not used to generate income, will fall into the regular policy. Even in this case its good to make the extra effort as 1 thru 4 above, and confirm you have enough coverage in writing.

You do not need the rider if you transport the equipment for fun only (no income). However, if you make a claim, and they find out you get paid to play, your screwed. The rider is cheap enough to keep you honest.

I appreciate the helpful feedback. Looks like I'll be adding the rider.

Gary... I'll give you a call.

[Ray Montee (RIP)]

Any time you can provide photographs of each instrument, at all angles including serial numbers,
the STRONGER YOU POSITION will be. These should be kept in a safe deposit box not where the fire or tornado can get to them.

TRUST ME! Regardless of who your friendly personal agent might be. Insurance companies HATE to pay out money. Their insterest is in 'collecting money' from YOU, the policy holder. If there is ANY WAY they can get out of paying a claim, they will do it.
It's a proven fact in all too many legal cases.

Your equipment might be covered and again, it might not be. See what your LIMITS are with regard to any
'special equipment' that does not qualify as house-hold affects. If uncertain about the language, get a clarification in writing.

Also, many clubs will tell you "Sure it's okay to leave your stuff here on stage over the weekend as we have insurance and a security system". DON'T YOU BELIEVE IT.

[Jeff Hyman]

These should be kept in a safe deposit box not where the fire or tornado can get to them.

Makes sense that a pi$$ing match is possible. I guess you can't go wrong by having the agent put his signature on the photos prior to storing them offsite. I must say though, that any claim I've had with Allstate has typically been fair, quick, and without to much hassle. I've also taken precautionary measures to make sure I know the limitations of coverage, and what is expected from both parties... but following your advise is still the best route IMHO.

[Lorren White]

Your homeowners policy applies no limit or sublimit specifically to musical insturments and related equipment, which are therefore covered for their actual cash value like all other types of property, subject to policy limit. They are covered for the same causes of loss as other uncseduled personal property, with no sublimit on theft. So assuming the homeowners policy has adequite limits of coverage on unscheduled personal property, so if a musical instrument and other personal property are taken by burglar, the loss will be covered.
Many people decide that their homeowners insurance provides adequate coverage on their musical instruments however, the actual cash value coverage available under the homeowners policy might not be suitable for instruments with special value. If they are especially antique or collector items, can properly be insured fine arts. Fine arts coverage is agreed value coverage.
You can buy a musical instrument floater as an attachment or separate and coverage can be scheduled or unscheduled, blanket basis. Covered property includes not just the insturment but also related cases, music stands, other accessories and sheet music.
Special attention must be paid to the play for pay exclustion in either approach. This is in the homeowners policy, which means you must use the instrument floater for any intruments played for pay including teaching. The floater can also contain the play for pay exclusion.
The advantage to the instrument floater coverage is that coverage is generally provided on an all risks basis whereas the homeowners generally is a name peril basis of coverage. The floater generally provides newly acquired insturment as defined for the lesser of $10,000. or 25 percent of the amount of insurance. You can also use the standard actual cash value approach or the agreed value approach, depending on which form you select. JUST KEEP IN MIND THAT THE PLAY FOR PAY EXCLUSION IS IN THE HOMEOWNERS COVERAGE AND CAN BE IN THE FLOATER COVERAGE, LOOK FOR IT!!!! retired agent

[Robert Harper]

Next your insurance will be covered by a company that has a monoply or a virtual unofficial monoply and then you will really pay out the ___. I owned a house in PC and I thought it was expensive then. I hate to see what is gonna happen

[David Hartley]

Up to £1000 only is covered I was told in an 'out building'. As soon as they know its taken from the property to gigs etc. the normal domestic cover does not apply I was also told. Musicians union have policy that does cover our equipment I was also told.
This that follows is a TRUE story... Someone I know had loads of antiques stolen. He had NO insurance. He thought he would stop it ever happening again by constructing a modified clay pidgeon trap with a huge blade which would cut both legs off by a trip wire at his gate if anyone came wandering around when he wasn't there...!!!! He thought about it soon after making it and thought that this is not probably the best solution..I think he was worried about his cat more than the postman!!

I am sure there are other stories like this that could be told..?

ME.. I use Akita Dog and security cameras, and 12G in the bedroom! Make my day as they say!

This might start off the 'concealled' stories again..!

Its all cheaper than insurance..

[Ray Montee (RIP)]

If you have "VALUABLE" property.......unless otherwise addressed, you will face a tremendous depreciation at the time of loss.
UNLESS you purchase a replacement value and pay for it, you will get nowhere near what you originally paid for it.

In the case of olde Bigsby's and Rickenbachers to name only a few.........A brand new Rick for $59.00 with an amp, 68 years later would be worth zilch in the eyes of an auditor with some big glass palace insurance company. On the other hand, some of these are today going for upwards of $1,500 and much more.

Before you think of the insurance carrier's as your friend, REMEMBER "KATRINA".

[Rick Campbell]

Whatever you do, get it in writing. The agent can say anything he/she wants to, and he/she is probably sincere, but the insurance company has the final say in the event of a claim, and it's based on what's in writing....no more, no less. Saying "the agent told me...." will be like water running off a ducks back.

[Richard Sinkler]

Didn't we discuss this before and there are companies that specialize in instrument coverage? I couldn't find the post.

[john widgren]

Insurance@musicproinsurance.com

Unless it never leaves your house, this is the way to go.

[Jerry Gleason]

I just signed up with Clarion. My instrument and equipment collection adds up to way more than I thought. It's foolish to have it uninsured. Clarion gave me a pretty good deal. Just over $32,000 of coverage for $272, no deductible, coverage anywhere, even coverage of depreciation of value in case of a repair that that affects the instrument's value.

The way they write the policy, your equipment is insured for whatever you say it's worth, so you just give them a list of gear, along with serial numbers, declared value, and you're good to go. Any individual item over $5000 would require an appraisal, or other documentation.

I've also read good things about Heritage insurance, but mixed opinions about Music Pro.

[Tommy Shown]

I'm with Marsh & Co (through the AFM). I have around $25,000-worth of equipment covered in my home, and I'm permitted to take up to $10,000 away with me in the car for work. I've inquired, and I'm told that it's covered in a locked car overnight, 'though I wouldn't want to count on that one!

This costs me around $240 per annum. I have provided serial #s and photos of each item. I was unable to get coverage on our State Farm home policy, by the way. They wouldn't cover my collection of scale locomotive models, either, despite my specific list, prices and photos.

(State Farm are now pulling out of FL home insurance - I dunno what we'll do next!)

They've done the same here in Louisiana. after Katrina. It seems like these people know the Gulf Coast area is know for hurricanes and they yank coverage out from people that have had coverage, and won't renew their policies.
tommy