Do you insure your gear? (not homeowner's, but dedicated gear insurance)

[RickP]

I have an additional home policy on my gear that always stays at home (they stopped offering coverage for gear you‘re using to make money with under your homeowners policy), and all my gigging gear is covered specifically for that purpose with MusicPro. There are a lot of advantages to using a musician-specific policy, especially if you’re touring, because it goes into things such as rental costs to replace things gone in covered losses so the show can go on.

The home policy stuff changed significantly over the years. It used to be a very unspecific total amount sort of thing, and now it is a specific list with specific values I have to submit proof of (and receive approval on) the amount before it is covered. It’s a pain, but honestly it makes better sense that they are insuring a specific item for a specific amount.

 

[11top]

(they stopped offering coverage for gear you‘re using to make money with under your homeowners policy)

That’s been true for years because of the business pursuits exclusion. However, ISO (almost all HO insurers adopt ISO’s coverage forms) strengthened the exclusion language by defining business as grossing $2,000 a year (to differentiate business from a hobby).

 

[RickP]

That’s been true for years because of the business pursuits exclusion. However, ISO (almost all HO insurers adopt ISO’s coverage forms) strengthened the exclusion language by defining business as grossing $2,000 a year (to differentiate business from a hobby).

That must be it, because my agent knew I was gigging up to three times weekly all year at that time, and let me know I’d be better protected for that gear with what amounts to a business policy, and referred me to this company specifically. I was definitely way over the $2k gross then, often per month. Net, of course, was another matter!

I‘ve been with the same agent since 1983 (actually the same business, as my original agent retired a few decades back). I’m sure I could beat the prices, but the few issues I’ve had have been immediately covered and its hard to put a value on advice that keeps you from getting that “sorry, you’re not covered for that because of this” notification at the worst time. I gripe about the cost, but sleep good knowing I’m buying something that’s proven its worth in times of need.

 

[DRBDJSM]

Again, you don’t want replacement cost if the market value exceeds RC. In addition, replacement cost alone still requires the insured to prove the value at the time of the loss per the written contract. Scheduling is only a rating number. AGREED AMOUNT guarantees the scheduled amount is what you will receive in a total loss.

If Heritage didn’t want dollar amounts from you, then you don’t have agreed amount. Heritage will add it if requested. I have discussed this with their owner who is also a CPCU.

It is my understanding that Heritage "replacement" value is for same model, same year. Obviously in George Gruhn's case, his 1933 Martin D-28 ($300+K) is far different than a 2022 D28 ($2500) and he has used Heritage many times for claims and says they are great. My Eyes roll back in my head about that kind of stuff but my dad is a CLC, Cxxx, CL-something-something and retired from his agency a few years ago and is "Chair of Insurance" at a local University's "Insurance Degree" dept, and he signed off on Heritage. Not saying I know ANYTHING but I did attempt to get the best policy and Heritage is what I came up with. I THINK it is adequate but I also know that everyone thinks their policy is adequate so i will recheck. I appreciate the advice.

You sound just like my Dad (which in this case is a compliment). He says things like, "you know your friend Mike has a potential insurance nightmare since he is selling his crafts from that detached garage. If it were attached and he burned it down his homeowners would cover it but since it is detached, he needs a separate policy...."

I will revisit the validity of Heratige. Thank you.

Edit--I also do not own any 59 LPs so we are good on that one. I DO own a 1997 Gibson Super 4000 Chet Atkins archtop which is fairly valuable but they only made 20 over a few years and all 20 are (ish) the same value so I am good there. Actually I do not think that I (personally, not trying to invalidate your excellent points) own any guitars that are valuable that could possibly be replaced by another year or new years that are less valuable. Just pondering your (again, excellent) points. This is like chatting with my Dad and not having to deal with his (not my mother) wife. Fun.

 

[JasonE]

Just because you supply values and have a schedule does NOT mean you have AGREED AMOUNT. Heritage does offer it, but you should ask if you have it and ask where it’s stated in your policy. Coverage is based upon the language in your written contract; it’s either in your contract (generally at no additional premium) or it isn’t. Pretty simple.

I will have to pull it out and read it again. I haven't looked at it for a while. I know that they add my schedule with the amounts to the paperwork to show what is covered. I also remember it stating replacement cost. It was a good while ago when I had the actual conversation with them about all of this. It is probably time to have it again just to clarify that nothing has changed.

 

[11top]

I will have to pull it out and read it again. I haven't looked at it for a while. I know that they add my schedule with the amounts to the paperwork to show what is covered. I also remember it stating replacement cost. It was a good while ago when I had the actual conversation with them about all of this. It is probably time to have it again just to clarify that nothing has changed.

A listed dollar amount on a schedule is only used to establish a rate to charge you a premium (although it is also a Maximum that will be paid in best case scenario). It does NOT guarantee the insured that amount even if you have replacement cost. The only way the scheduled dollar amount is guaranteed is to have “agreed amount“ endorsed on the policy.

I‘m exhausted.

 

[JasonE]

A listed dollar amount on a schedule is only used to establish a rate to charge you a premium (although it is also a Maximum that will be paid in best case scenario). It does NOT guarantee the insured that amount even if you have replacement cost. The only way the scheduled dollar amount is guaranteed is to have “agreed amount“ endorsed on the policy.

I‘m exhausted.

I appreciate the information. I am going to pull it out and look it over once I get a chance to do that. I am paid up for this year but could contact them about any changes.

 

[PRSWILL]

I have a rider added for a number of items in the house - Rolex watches, diamonds, and music gear- it's not too expensive and It has a lower deductible if something is stolen. If the house burns down everything is covered for complete replacement value, up to an agreed amount ( for discontinued items) under the master policy. Unless you have in excess of $ 10,000 in gear, you may not need this- check with your policy holder. All you need to do is provide pics and serial numbers.

 

[11top]

Unless you have in excess of $ 10,000 in gear, you may not need this- check with your policy holder. All you need to do is provide pics and serial numbers.

Where did you get the idea that $10,000 had anything to do with whether or not you need a schedule?

Also, agreed amount (which I have now advised 63 times) will likely also require an appraisal.

 

[PRSWILL]

Forgive me if I mis-understood you, or was incomplete- I said nothing about a schedule. My policy - with Nationwide, Private Client has a built-in cap for certain types of items of up to $ 10,000 PER ITEM and a total capo, but I don't remember what that is. If you have goods that are unique, fall outside of their typical actuarial tables, or total in excess of this amount, a rider is needed- that's what I did- not trying to say your opinion is wrong- just pointing out what I did. The BEST advice - especially on a forum when SO MUCH is not discussed about the background , person , net worth, home value, etc- and I am not advocating we go there- is to talk to your agent and get a realistic assessment of the value of your gear. All I'll say is I have north of $ 150K in music equipment alone - and it's all covered under the rider.

 

[11top]

Forgive me if I mis-understood you, or was incomplete- I said nothing about a schedule. My policy - with Nationwide, Private Client has a built-in cap for certain types of items of up to $ 10,000 PER ITEM and a total capo, but I don't remember what that is. If you have goods that are unique, fall outside of their typical actuarial tables, or total in excess of this amount, a rider is needed- that's what I did- not trying to say your opinion is wrong- just pointing out what I did. The BEST advice - especially on a forum when SO MUCH is not discussed about the background , person , net worth, home value, etc- and I am not advocating we go there- is to talk to your agent and get a realistic assessment of the value of your gear. All I'll say is I have north of $ 150K in music equipment alone - and it's all covered under the rider.

The “rider” you mentioned doesn’t have a schedule?

Jewelry, silverware, gold and precious metals, firearms, and money all have dollar limitations, but not musical equipment. It’s not “opinion” because it’s a written contract. With rare exception, the major insurance companies follow ISO forms and the language reads the same (assuming an HO3, HO5, etc.)
The only dollar limit for musical equipment (assuming it’s not business personal property) is your overall personal property limit which is typically 70% of your dwelling limit and is replacement cost (assuming RC was purchased which is normally the case). The key is to make sure your personal property limit is high enough to cover all of your contents including musical equipment. And add AGREED AMOUNT on all schedules (64th time. ).

 

[bodia]

The “rider” you mentioned doesn’t have a schedule?

Jewelry, silverware, gold and precious metals, firearms, and money all have dollar limitations, but not musical equipment. It’s not “opinion” because it’s a written contract. With rare exception, the major insurance companies follow ISO forms and the language reads the same (assuming an HO3, HO5, etc.)
The only dollar limit for musical equipment (assuming it’s not business personal property) is your overall personal property limit which is typically 70% of your dwelling limit and is replacement cost (assuming RC was purchased which is normally the case). The key is to make sure your personal property limit is high enough to cover all of your contents including musical equipment. And add AGREED AMOUNT on all schedules (64th time. ).

Steve, I know you're retired, but maybe you should post your business card

 

[ScottR]

Steve, I know you're retired, but maybe you should post your business card

For real! At least charge a consulting fee.

 

[11top]

For real! At least charge a consulting fee.

I’m really glad to help out.

 

[PRSWILL]

You need to back it down a notch dude. I simply stated the HIGH LEVEL outline of how I take care of this stuff and I'm not inclined to share a lot more info on a public forum. You're persistence on this is getting obnoxious.

 

[veinbuster]

You need to back it down a notch dude. I simply stated the HIGH LEVEL outline of how I take care of this stuff and I'm not inclined to share a lot more info on a public forum. You're persistence on this is getting obnoxious.

I believe many members appreciate 11top’s guidance in the specifics of insurance. If you are comfortable with your policy, just tune out.

 

[dmatthews]

I believe many members appreciate 11top’s guidance in the specifics of insurance. If you are comfortable with your policy, just tune out.

The thing about my modest collection is that there's nothing (including the WL 594) that cannot be replaced as long as there's patience.
The bad thing is most of them are no longer made.
SE One (signed by Dweezil)
305
Core Mira
McRosie
P22 rosewood
First 500 Silver Sky
594 Soapbar
2000 Singlecut

I think the only ones you could find new might be
WL 594 with rosewood neck
594 Hollowbody non 10 top.

If the case wasn't stolen/lost I could handle a newer Silver Sky, perhaps with maple board.
The rest of them would be a tough negotiation, but I have patience.

 

[bodia]

You need to back it down a notch dude. I simply stated the HIGH LEVEL outline of how I take care of this stuff and I'm not inclined to share a lot more info on a public forum. You're persistence on this is getting obnoxious.

You do know that he owned an agency, right? He’s trying to steer people in the right direction so they don’t get screwed

 

[11top]

Alrighty then. I’m through with this topic. I hope I helped some of you out with the most effective way to insure your gear. I was also attempting to clear up misinformation, as I don’t want you to get bad advice. If any of you have further questions, I’ll be glad to help you. Just send a PM to me. Since I’m retired, I’m certainly not looking for new clients; at this stage I just like to help people out.

 

[Moondog Wily]

Alrighty then. I’m through with this topic. I hope I helped some of you out with the most effective way to insure your gear. I was also attempting to clear up misinformation, as I don’t want you to get bad advice. If any of you have further questions, I’ll be glad to help you. Just send a PM to me. Since I’m retired, I’m certainly not looking for new clients; at this stage I just like to help people out.

Thanks for the great advice and clarification on how this stuff works! I used to be a licensed Life/Health insurance agent decades ago, and I know how complicated some of this stuff can get!! You have done an excellent job in making me realize where I need to pay close attention in my insurance contracts!!!