Insurance for Hi-Fi gear.....

[treitz3]

So I went to my Allstate agent to get a Schedule C insurance policy on my rig and certain components within and he said that I could not get an insurance policy for "Sparky", my rig.

He told me that they insure musical instruments such as a guitar and an amplifier and that I could get coverage for the computer as well, just not coverage for the rig. Now, I have a considerable amount of $$$ tied up with spare amps, spare IC's, PC's, CDP's, VCR's, DVD's yada, yada.

I told him, "OK, well my rig is hooked up to the computer via the Velo SMS-1 and that if I purchase a guitar, then use the rig as the amplifier, then I will be covered right?" His answer, "No, that's not how it works". Huh?

Frustrated, I told him that I'm not liking his answers [after an hour and 1/2 of talking] and that I would like him to refer me to an insurance company that WOULD insure my collection. He said that there is not an insurance company out there that would provide such coverage. WHAT??? Am I missing something???

Now, granted I may be reading him incorrectly but I got the feeling that he was taking me as a customer that wanted to participate in insurance fraud. The statement that got me thinking about this was...."Being in the insurance industry as long as I have been, I can tell what certain peoples motives are". WTF???

What in the HELL is he talking about? Motive? What motive? I have no stinkin' motive! I want coverage, which I THOUGHT I was getting with a whole house replacement policy [which he says I have], but not when it comes to Hi-Fi. I was told that if I had a TOTAL loss of the house from a tornado, hurricane or fire that I would be covered for the rig....here's the kicker...."at a depreciated value"......So what does replacement value mean to him? ARRRGHHH!! He told me that was for furniture, appliances, clothes, etc...and that that would all be replaced at full replacement value.

Now, seeing as I have a lot of vintage gear here I asked him, "OK, well the used market of some of what I have is just now getting to the point to where [even non-refurbished] prices are starting to top that of the equipment when brand new, so that's current market value right?" His answer, "No. It is the depreciated value of twenty year old equipment". So I asked him that "if I purchased an amplifier at $600.00 and got it completely overhauled for $300.00 [plus shipping across the country both ways] that I would receive close to $100 or less, given the age?" His answer, "probably less, given the age and depreciation factor". Regardless of whether or not all monies paid toward each item was well documented or had receipts.

Soooooooooooooooo, it looks as if my insurance agent is not the person I need to speak to. I want replacement value for my rig if it were to get stolen, or at least the most amount possible in the unlikely event that something DOES happen.

Where do you guys get coverage?

This is VERY important to me as I have devoted 30 years plus in the building of my rig and countless dollars to achieve where I am at and don't plan on stopping anytime soon, but when the cost of this hobby exceeds 20% of the total worth of your house....it's time to get serious about proper coverage.

It's time for me to get serious. Thanks in advance for ANY useful information and help in this regard.

Tom, the extremely happy but frustrated audiophile.

 

[nsgarch]

Treitz, you sound like an intelligent person -- and as an audiophile, at least somewhat discriminating. Would you mind explaining why you're doing business with "we deny all claims" Allstate?

 

[treitz3]

Multiple policy rate. Plain and simple. I want no bashing. I request advice. I just want to know where to go to get proper coverage. This is one of my loves and my passions in life........I'll leave it at that........

I would just like to know what options are out there, please.

 

[HsvToolFool]

State Farm.

 

[Beakman]

LLoyds of London, if they still exist, would insure your rig. There are specialist insurers for most anything out there, unfortunately I don't know who. Perhaps if you contact some jewelry or vintage car insurers you may get a lead.

 

[Rich]

Let me re-iterate what Brian said: STATE FARM. They have always been great with us. You should be able to take out a specialty rider for the value of your rig.

 

[nsgarch]

If you have no ideas,

and can't get referrals from friends who have the kind of coverage you want, my advice would be to contact at least two independent insurance agents who can tailor a program for you. They can use multiple underwriters if necessary; and make sure they're middle-aged. That sounds weird, but you will be dependent on their personal service, so you don't want a youngster who may decide to change careers, or someone who is about to croak! Another option is to go with a premium company. Yes, you'll pay more, but a.) they'll have the kind of coverage you want, b.) may be able to bundle it so the bottom line isn't that much more (ie: if your rig is covered separately, your homeowners can go down) and c.) when there are claims, they pay with few questions asked -- that's what you want isn't it? I'm talking about companies like Travelers, The Hartford, AMICA, Liberty Mutual, etc. Now get out your check book

And remember, life is about asking the right questions. For instance, it cracked me up that you actually asked your State Farm agent (and I paraphrase) "Would you please refer me to one of your competitors who offers that coverage so I can switch companies?" Instead say "Will you pay for a new replacement amplifier, no matter the cost of the current version? Is that stated in the policy? Show me where." Or, "Does the policy include an itemized list of exclusions? Then can you provide me with one? Can it be included in the policy? Is everything not specifically excluded, automatically included? Can you cancel my policy if I have to make a claim? Show me where it says you won't."

Multiple policy rate. Plain and simple. I want no bashing. I request advice. I just want to know where to go to get proper coverage. This is one of my loves and my passions in life........I'll leave it at that........ I would just like to know what options are out there, please.

 

[tonepub]

do a couple of google searches to find someone who specializes in collectables and collections.

Just like any other vintage anything, you will probably have to find
someone that is certified in appraising things like this so that your
vintage audio will have the proper value placed on it to your satisfaction
in the event of it ever being damaged, destroyed or stolen.

I woul even consider asking a few antique shops who they get
their insurance from and that may be a good place to start.

There are so many people with collections of all different
things, I'm sure you can find the right place with a few phone
calls.

Let us know what you find out, I"m sure there are more people with
this dilemma.

 

[Joey_V]

My dad has my entire apartment insured under State Farm for upto $40K. I know they replace at a depreciated value, but I don't know how they determine such value.

Your thread is now going to force me to call them up and get some answers.

Joey

 

[risabet]

My company, Mercury Ins., won't insure audio or video equipment individually but they do insure it as household contents to the limit of the policy, ~150K in my case. They do not insure software (LPs, CDs, and DVDs) however, nor does any other company I have spoken to.

Here is what my agent told me to do. Video tape or photograph every piece of equipment you own. Record the serial numbers. When purchased. Amount purchased for and where. Insurance companies are looking for reasons to deny your claim, don't give them one. Have your ducks in a row before you need it.

Good luck.

 

[benleeys]

From what I read above, your US insurance industry seems to operate with different practices. Here in Singapore, my gear is fully insured under a Household Contents Policy which covers all risks at replacement values. Since my gear is the most expensive item on the policy, all that my insurer requests for is copies of the invoices for proof. Here, we have insurers from all over the world operating under similar rules.

A friend of mine recently had his equipment fried by lightning and his insurer paid up handsomely pronto after an inspection.

In case you wish to know, my insurer is Royal & Alliance (formally Royal Insurance), a UK company. I do believe they are present in the US too.

 

[tonepub]

considering the depreciation of hifi gear, look into getting Replacement insurance. It will cost more, but that way you have better coverage.

This is only for the people out there with current gear.

Again, if you have vintage gear, you will need a collector policy.

This is sounding more like an article to me every day!

 

[jk319]

treitz3, gl in finding the right policy for you. My post is here is not directly helpful whatsoever, and I know that your musical instruments are already covered, but I just wanted to put in a plug for the best insurance company dedicated to musical instruments (as I know there are those here who probably own some fine stuff). Clarion is the name. Excellent policy, especially for those who travel with their gear a lot.

 

[Gordon Gray]

I have my house and all "contents" insured by Safeco. I was assured by my agent, who I've known for 25 years or so, that all my contents, including my hi-fi gear, CD's, etc., would be replaced, in case of fire, etc., at "replacement" cost. I assume that's current / fair market value for any specific item when a claim is filed. To the best of my knowledge, there are no "excluded" items.

Don't know if that applies to "collector" items regarding their value if one has to replace. Hope that helps.

GG

FWIW, I've had limited experience with processing claims with Safeco but, when I've had to file a claim, they've always been fair.

 

[benleeys]

......... in case of fire, etc., at "replacement" cost. I assume that's current / fair market value for any specific item when a claim is filed. To the best of my knowledge, there are no "excluded" items.

I believe, in insurance lingo, "replacement" cost means original purchase price or current cost of a new item, whichever is LOWER. So if current cost is lower than its original price, the insured gets compensated with the current cost of the damaged item. If the item is currently obsolete, the compensation value is usually negotiable, depending on the price of an equivalent item on the existing market.

With the tendency of electronic goods to get cheaper with each newer generation in production, the insured will seldom recover the original cost of the insured item in a claim.