So I’m guessing a special rider that would cover the actual value or replacement cost versus a regular policy that would take in account depreciation?
What Markie said: talk to 11top. He will explain that homeowners wont cover instruments on regular policies, how the riders wont cover you gigging, how you need a real policy from a company that specializes in them, etc.
Yes defined value in the policy. 11top can tell you what it is called.So I’m guessing a special rider that would cover the actual value or replacement cost versus a regular policy that would take in account depreciation?
Its fair to decide to self insure when the loss will just be your own and the value of the loss is predictable. I like some insurance to soften the blow of a loss. If I lost all my guitars I wouldn’t replace them all, but I’d like to be able to replace a few without being out of pocket.I know I am crazy, but I have decided not to insure after having one guitar stolen 30 years ago and getting about 70% of what I needed to replace it, even though I thought that I had replacement value coverage (which I have since learned is a "defined term" )
If I lost all my guitars I wouldn’t replace them all, but I’d like to be able to replace a few without being out of pocket.
Its fair to decide to self insure when the loss will just be your own and the value of the loss is predictable. I like some insurance to soften the blow of a loss. If I lost all my guitars I wouldn’t replace them all, but I’d like to be able to replace a few without being out of pocket.
1. Your homeowners insurance covers your personal property (ie. Contents including musical instruments) worldwide as long as it’s not “business” property, and it’s subject to your deductible.
2. The definition of “business” may vary from one company to another. The lastest ISO form (99% of carriers adopt the ISO form) defines “business” as GROSSING $2,000+ within 12 months. Does that include selling guitars? Most likely, but up to your adjuster.
3. An unendorsed HO policy only provides “actual cash value” (depreciation applies) on contents, but most are usually written for full replacement cost these days. (But remember, replacement cost may not adequately cover your loss. For example, think about a real 1959 Les Paul standard. Would you be happy collecting $6-7,000 on a guitar worth $250,000?). And see #4.
4. An unendorsed HO policy requires you to prove the value of your loss at time of loss. On the other hand:
5. A VALUED schedule does not require proof of value at the time of loss. The value is set at the time of scheduling, and usually requires an appraisal. IF YOU WANT TO BE CERTAIN ON THE AMOUNT YOU WILL RECEIVE AFTER A LOSS, THIS IS THE WAY TO GO.
Those are the facts. Here are some opinions:
1. Buy your coverage from an “Independent Agent.” If you want to catch my drift, Google “worst insurance companies,” and see who ALWAYS is listed. Hint: It’s those companies with the catchy funny commercials on TV. Hey, I love those commercials; the insurance just sucks. And hmmmm, who pays for those commercials?.....but I digress.
2. Look for an agent with “CPCU” after his/her name. Knowledge is a good thing (and doesn’t cost the consumer any more).
If your current agent/Company won’t provide valued coverage, I’d find different insurance. Plenty of carriers will. I use Cincinnati Insurance, and they are excellent. If you need a mono-line market, Heritage is Good. They use Traveler’s paper (last time I inquired). They will schedule. THEY WILL USE A VALUED FORM IF YOU REQUEST IT (and doesn’t usually increase the rate). They will allow business use if needed (at a higher rate).
Now, those of you following this sage advice owe me a beer. We are on the honor system! ;-)
I'll buy ya a beer next time you're in Chicago, just cuz!
I should print this and show it to my renters insurance guy at AAA. He likes to say things, such as "musical instruments are covered to a reasonable amount." It is hard to sell my guitar collection as anything resembling "reasonable." Well, reasonable HERE, but not to the outsider.
He also says, "Your homeowner's policy covers collectibles up to $1,000." I said, "No offense, but what kind of sh*tty collectibles are we talking about here?"
In the end, what he was telling me was that my renters insurance would cover the TV, couch, bed, clothes, computer, etc., and that it would also provide coverage if a friend comes over [haha] and they get bit by my cat and want to sue, or maybe they trip over a coffee table.
It's the type of insurance that is required for living here.
Maybe the difference is that I'm a renter, and not a home owner.