Insurance

A note of caution about "replacement value":

You want to make sure you BOTH read your policy AND confirm with your agent whether it is NEW replacement value OR current market value of your (now used) equipment.

1.) It should be for it's current NEW replacement value.

AND

2.) Double check what the company's policy is regarding "current model replacement" i.e. If your (lost/stolen) piece of equipment is no longer in production, will they replace it with the current equivalent model?

If both 1. and 2. are confirmed, it's still your responsibility to total the cost of your system at current retail value (and using the current equivalent model(s) msrp if/where applicable). Then add that total to, or include that figure in, the total value of your household "contents".

Adequate coverage costs more money than what you get in a "basic" policy. Make sure you don't under-insure.

First off, check around for an insurance company that will pay if you make a claim, some will do everything in their power not to pay should you ever need them...ask friends if they have ever needed to file a claim, if so...ask them their opinion regarding dealings with their company. Filing claims is not something most of us ever do...I've filed two in 35 years.

I had a house fire around 10 years ago, I had a good company and they got right on it...I had replacement cost insurance on everything. I've heard some not so good stories from others regarding dealings with their companies over the years. I'm thinking not all companies are created equal, I did see a news story not long ago on TV regarding the huge S.F. earthquake that happened several years ago...seems 1000's had bad insurance companies that have never paid to this day!

Dave

I have taken a slightly different approach. I did not wish to 'take any chances' and I personally have found no reason to 'trust' my insurance company. The relationship any of us has with an insurer is STRICTLY business and it pays to treat it as such and take care of business.

As such, at the advice of my agent, I specifically purchased additional insurance for 'defined' house valuables. In my particular case, it is 'fine arts' coverage. This is completely above and beyond our homeowners policy, and of course, it costs extra but is reasonably priced.

I then provide a 'very detailed' documented listing of exactly what is being covered. I choose, and document, either with bluebook values or apprisals, the value of the equipment (serial numbers, etc.) for which an item can reasonably be replaced in todays marketplace. I submit it to my agent, who then submits it to the underwriter. The underwriter is, of course, free (based upon their evaluation metrics) to either choose to cover or to deny coverage. Once the underwriter has accepted my documentation of contents, the deal is done. I am advised that in these types of situations (in the event of a claim) that a claims adjuster will very very seldom choose to take any form of exception with the choices of the underwriter, and even then that the only issue would be if there were reason to suspect fraudulent claims of ownerhsip. The underwriter has, after all, accepted binding documentation into a legal contract.

I advise my agent of any changes, and make sure that he always has a complete and detailed current inventory. I include all media within the coverage as well, and I admit that it can be a bit of work to detail and value this, but there is pretty good software available to make it easier. I email my agent a *.pdf of the documentation, and get a receipt of delivery. It makes a very nice paper trail.

Thanks for your info. My current homeowners policy is with Met. I'll check with my agent Monday.

Very worthwhile thread. Thanks to everyone for your comments thus far.