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Insurance values

Hi, I wondered what others do about insuring hi fi.  Many years ago I used to specify full details of Hi Fi system separates from a concern that an insurer would not cover in the event of a claim.  Eventually I was informed that insurers were not concerned about these items as they did not fall within the very narrowly defined list of "high value items" and so providing the overall cover was sufficient, itemised detail was not required.  Hence I stopped providing the detail...
I am now renewing household insurance and noted that the position has changed, and insurers now list "turntables" and "audio equipment" within items of high value to be specified... This has given me a slight problem, in that the system has been in place for a number of years, and although I am aware of the purchase price for components, and could probably track down replacement values for a number of items, there are some specifics that are no longer available, eg:Linn LP12, with armageddon power supply and Naim Aro tonearm, dynavector cartridge  Sorry for the long winded introduction, but I wondered what others do about such items ? how do you determine replacement value ? do you cover through standard household insurance ? Is it worth considering a specialist policy ? Any views/ thoughts would be appreciated.
vinylgeek
11 responses Add your response
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cleeds
5,944 posts
 
testpilot
"Coins" are deemed as currency/cash, and most policies limit the amount of currency that is lost. Rare coins are collectables, and require an appraisal, otherwise they will reimbursed on face value. I would bet that your insurance carrier/agent misunderstood your request.
+1. Also not typically covered unless listed on a separate rider: Recordings (LPs and CDs), computer software, art and - as testpilot suggests - anything that you want to insure for its "collectible" value.
lowrider57's avatar
lowrider57
5,417 posts
 
Thanks @testpilot . I’ll contact my insurance agent again and make it clear that these are certified rare coins.

It would be devastating to only receive $20 face value for a double eagle coin valued at $5000.

testpilot
929 posts
 
"Coins" are deemed as currency/cash, and most policies limit the amount of currency that is lost.  Rare coins are collectables, and require an appraisal, otherwise they will reimbursed on face value.  I would bet that your insurance carrier/agent misunderstood your request.
lowrider57's avatar
lowrider57
5,417 posts
 
I asked my insurance company about coverage for my HiFi system. They said it is treated as property just like everything else in my house.
I have taken pics, recorded serial numbers, and kept receipts.

But this part doesn’t make sense to me; I have a rare coin collection and asked for a rider, similar to an art collection. They said the coins are considered property along with the contents of the house. This doesn’t make sense since most of the coins are graded and have a book value.



tuberist
951 posts
 
Test Pilot has provided very good advice. With replacement cost homeowner's coverage the insurer will pay depreciated value on the item and make up the difference when you show you've done a replacement. I just use the basic coverage on my HO policy for "contents" I have never heard of any insurer wanting to do a separates list like the OP has described. So a check in with the insurance agent is a must.
testpilot
929 posts
 
My buddy wanted to insure his record collection and was told by his insurance company that he would require a professional appraisal to establish the insurable value.  IIRC, the appraisal was quite costly and required updating at the insurance company's discretion or if the collection changed in a material way.  Again, check with your insurance broker. 

As for your equipment etc, document everything along with pictures.  In the event of a loss, having documented proof with the make, model, serial # and pictures makes it easier for the adjuster to settle your claim. 
mofimadness's avatar
mofimadness
4,982 posts
 
I'm guessing you had a replacement cost policy.

Yes.  I have a separate rider for my records, but the gear was part of the overall "contents".
lowrider57's avatar
lowrider57
5,417 posts
 
Wow @mofimadness , that's a terrible experience.
I'd like to know if your system was listed simply as property on the policy, or did you have some type of rider?
I'm guessing you had a replacement cost policy.
 
mofimadness's avatar
mofimadness
4,982 posts
 
My understanding is that if your policy is for replacement value, you base the insured value on a similar item available today. I would consult your insurance broker to make sure, since that is his/her job.

+1...My house got hit by a tornado in 2008.  The insurance company paid out almost $100,000 for just my high-end audio/video gear.

Thank goodness the tornado hit opposite from my record rooms.  That would have been awful and VERY sad.
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cleeds
5,944 posts
 
I’m surprised that audio equipment is considered "high value" that needs to be separately listed. It’s certainly not a universal requirement. That’s such a nuisance that I’d suggest asking your agent to shop for an insurer that wouldn’t require that.
testpilot
929 posts
 
My understanding is that if your policy is for replacement value, you base the insured value on a similar item available today.  I would consult your insurance broker to make sure, since that is his/her job.
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