So, kind of a weird question, and hopefully this is the right place to ask.
I'm curious if any other collectors out there insure their collections, and if so, what insurance providers do you use?
I've got to the point I'v amassed a fairly good number of 1870's/1880's instruments that probably need to be insured. However, I buy cheap and do the lutherie work myself (complete restorations, etc.), which of course adds value. So, how does one prove the instruments worth, and in most cases being that my instruments are essentially "one of a kind", how do you determine things like replacement cost?
Just curious if anyone else, and any major collectors out there, can share their advice and recommendations.
My instruments, though high-quality, are not likely collectible - but neither are they cheap. They are insured with USAA (I'm a veteran) at values based on either appraisals and/or purchase receipts. It sounds like you would need to have reputable appraisals in order to establish insurance values for your instruments.
I was told many years ago by an insurance agent that my homeowners policy would cover my banjos with appraisals or receipts as mentioned above. I was told they would not be covered when used outside the home for professional purposes. I've assumed that was still the case. Someone let me know if things have changed.
I have a rider on my homeowners policy that lists specific instruments and the amount they are insured for.
You will need to have a third party examine your instruments and write an appraisal. Though I have done that in the past for friends, I no longer offer appraisals.
Calling your insurance agent will be a great place to start.
Bob Smakula
smakula.com
Heritage Insurance in Nashville. Their business is instrument insurance.
It's usually far less expensive to purchase a separate policy than to add a rider to your homeowners policy. Many collectors use Heritage Insurance Services.
quote:
Originally posted by Bill RogersHeritage Insurance in Nashville. Their business is instrument insurance.
Bill, you beat me to it by seconds!
As a second to the above. Heritage.
Easy to work with. They absolutely understand musical instruments from individual instruments to large collections. And they are very reasonable in pricing.
Thanks for all the suggestions everyone. My wife has been on the phone with Heritage this morning, which is looking to be a good one. However, any other recommendations are most welcome.
I have my instruments insured with Heritage which is underwritten by The Hartford.
The instruments are insured for an agreed value and policies under $150k do not require an appraisal.
The policy states that “The value of Covered Property will be the
amount shown in the Declarations for each item of Covered Property, which is agreed to be the value of the item as of the time of “loss".”
Years ago, my insurance agent put them on our homeowner's policy as fine art with an estimated overall value. They were not listed individually. He said any instruments I used professionally would have to have a separate rider.
I have mine insured with MusicPro, but Heritage seems to come up most often in these threads. One question I have though: Does anyone have any experiences in filing a claim with any of these options?
Clarion in New York is an instrument specialist also. They've been easy to work with over the years, although I've never yet had to file a claim. I've heard good things about Heritage as well.
One thing to consider about a rider on a homeowner's policy is that they will sometimes depreciate an asset if the value is based on purchase price, and offer some calculated settlement based on "replacement value" assuming they will cover the cost of a used item the same age as yours. Some also cover the item only as long as it's in the house, unless you inform them that you will be traveling with the item. And if your banjo gets damaged or stolen in any situation where money is involved, even if it's a pass-the-hat gig or busking on the street, they are within rights to call it "professional use" and refuse to pay. You should read your policy and the rider you have for your instruments, and see what restrictions the insurance company places on their liability.
I took out a policy with Clarion when I started playing professionally, and ended up putting all my instruments on it even if they never left the house, because it was cheaper than adding them to my homeowner's policy. Get appraisals from a known instrument store or other authority in any case, even if the instrument is new, and re-appraise anything collectible every few years because the market changes - if the value of your instruments goes down, you save on your premium, and if it goes up, you don't want to be under-insured.
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Originally posted by FooteI was told many years ago by an insurance agent that my homeowners policy would cover my banjos with appraisals or receipts as mentioned above. I was told they would not be covered when used outside the home for professional purposes. I've assumed that was still the case. Someone let me know if things have changed.
I concur with Lloyd's assessment and will add that IF you are performing on behalf of a non-profit group or a charitable effort of some kind (i.e. NOT getting paid to play) you homeowners WILL cover theft or damage to your instrument. But the onus is on you to prove that was what you were doing at the time.
Otherwise, yes, if you have appraisals and/or have them listed as "significant assets" on your policy, they will be covered by a typical homeowner policy.
Read your policy though, they will often have a requirement that an item or group of items that have a market value (what it would cost to replace it versus an appraisal) of $20,00 to $25,000 or more MUST BE itemized or specifically listed on your policy to be covered.
This usually applies to things like expensive watches and jewelry but could easily apply to a collection of Bacon Ne Plus Ultras, OR, a single Gibson Granada.
Chris
Thanks, Chris. I was starting to worry. Also, I live in a very rural setting with no crime in the area for the 20 plus years we've lived here. Of course there was this fire we has in 2018 (The fire went all around our house and my banjos). Still, good to know they're covered, although I probably will update some appraisals.
