Insurance question

Nick, is that the standard HO3 policy you are describing? I have replacement cost on building and contents but was unaware of any per item dollar limits...I'd take a huge loss if this is the case with my coverage.
thanks,
Larry

All great info as mentioned above but don't keep your pictures and other documentation regarding your stereo system at home. Make copies of all your pictures and reciepts and give a set to your insurance person and keep a set in a safe place as a safe deposit box. Wouldn't want a fire or thiefs destroying the paper trail!

Replacement cost is very important and the only coverage I will sell but there is a specific limit for electronics damaged by power surge of $1,000. That is why my equipment gets powered down and unplugged during bad storms like tonight in Michigan. Larry, I would ask my agent. It isn't something that comes up often but it is in the policy wording with my company. As long as it is a covered peril and you have the proper coverage for your personal property you should be fine. The power surge is just what I would refer to as a gray area. Jsawhitlock is giving solid advice on having documentation outside of your home in case of a fire or a burglar steals the safe you have them in.

"Power surges" and lightning are two different issues. Lighting is almost always a covered peril under a homeowners policy covering a single family home. The issue in the event of lightning is whether your polcy provides replacement cost coverage, as opposed to "actual cash value", i.e. the depreciated value of your equipment. A "power surge" is when your power goes off and a surge subsequently enters your home when the power comes back on. This event is often not covered at all, even under the broadest of homeowners policies - or at best is subject to a low limit as Nicksgem10s referenced.

The best best is to specifically schedule your equipment on your policy. In most cases equipment specifically scheduled on a property "floater" or "rider" is provided "all risk" coverage and payout is based upon the "stated value" of the property as indicated in the floater. Also, specifically scheduled equipment is usually covered anywhere in the world , whereas property only generally covered under a Homeowners policy will be subject to a minimal coverage limit if it away from home.

I would certainly encourage that everyone review this issue with their agent to ensure proper coverage.

You know, I don't recall hearing of anyone on this forum that has lost an entire system to lighting or power surge. Has anyone had it happen?

I have a renter's policy and made sure the agent was well aware that a majority of the coverage would be the hifi (I don't have much else of significant value besides that and my computer). They had me take photos of all the gear clearly showing up-close names and model numbers where possible and I also photographed serial numbers where I could. I emailed this to them along with a written description of names, models and s/n's and they said this would all suffice. I'm covered on anything I'd expect to encounter though I'd have to double check surges--in any case I always power down and unplug during electrical storms! In any rate I take the coverage with a grain of salt knowing full well that insurance companies aren't in the business of handing people money willingly.