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Jerry Hatrick - Posted - 04/26/2024: 02:33:26
I imagine this has been raised before, but how do people out there value their instruments for insurance purposes? There is an old joke about third party, fire and theft car insurance (who’s gonna steal a burning car?), but I guess any of these things could also happen to your treasured banjo of course, such as if your house burns down.
Insurers like you to put a value on instruments, but surely there are several different valuations:
1. The price you paid for it, although that might have involved sale discount, trade in exchange rate, and would ignore any subsequent price inflation.
2. The current market value, which might be significantly higher or lower depending on its second hand value to players and collectors, etc. (given that some makes increase in value and some decrease over time).
3. The replacement value, which assumes they are still being made (unlike Gibsons, Stellings and many vintage luthiers), and that a new one would be actually of equivalent value to your pre-war specimen.
4. Personal/sentimental value, which is arguably irrelevant to insurers, but might affect the resale price tag for example if the instrument was once played by some revered player (other than yourself).
5. Lastly, what if you inherited the instrument at no cost from your grandfather, who once bought himself a new Gibson Bella Voce, but left it unplayed in his dusty attic for decades because Grandma didn’t like the noise (we can all dream)?
Some might also argue that value has been enhanced by various improvements (de-tuners, pick-up hardware, new case, etc), which again sounds irrelevant but would affect your asking price if trying to sell it.
Edited by - Texasbanjo on 04/27/2024 07:55:43
Bill Rogers - Posted - 04/26/2024: 02:41:20
I use replacement value—whih may be more than my cost. If you’re dealiing with an insurer who’s not particularly instrument aware, you might need an appraisal.
HighLonesomeF5 - Posted - 04/26/2024: 10:18:14
Make sure you speak with your insurance agent. I added my instruments to my insurance for a number of years, was charged extra, only to find out they were covered without paying extra since they were not premium instruments. I forgot wha that number was but it was very high.
Edited by - HighLonesomeF5 on 04/26/2024 10:19:34
Slingerland - Posted - 04/26/2024: 12:47:38
Heritage insurance is who I use with an agreed value per instrument.
GStump - Posted - 04/26/2024: 15:14:16
Heritage Insurance is definitely the way to go. I think that's their specialty, insuring expensive and vintage instruments, Or any good instrument for that matter.
raybob - Posted - 04/26/2024: 22:09:38
Unless the instrument/s were a very recent acquisition purchased in a retail setting I’m pretty sure an appraisal will be required. An appraisal will protect everyone.
Alvin Conder - Posted - 04/27/2024: 07:42:44
I use Heritage Insurance. Easy and a great value. Covers loss, damage and loss of value.
They use an “Agreed Upon” value. Basically I take a few recent sales of similar instruments, and they agree that’s fair.
I highly recommend that if one has a decent instrument, or a collection of instruments, they insure them. The cost is minimal and it covers a good deal.
LouZee Picker - Posted - 04/27/2024: 12:04:06
Yep, Heritage all the way, that's who I use also. The customer service number is: 1-800-289-8837
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