Things you should know about Insurance for musical Instruments

This article originally appeared on Nationwide.com

Photo Credit: Lark Insurance

Finely crafted musical instruments can cost a significant amount of money. But just as classic cars and high-end jewelry can be insured, so can musical instruments. By getting an insurance policy, owners can cover their instruments in case they are stolen or damaged from
disasters.
Insuring a musical instrument is a good idea if it would be cost-prohibitive to replace it, or if the instrument is needed regularly for performances or teaching. Insurance often covers more than just the actual instrument; it might also cover the case, accessories and even sheet music. Here is a rundown of how you can get insurance for musical instruments.

Homeowners or renter’s insurance

You might not need a separate musical instrument insurance policy to get covered. Musical instruments can be insured under homeowners or renter’s insurance, though it’s important to find out coverage details. These policies have a limit for the home’s total property damage and may have a limit per item. The per-item coverage may be lower than your musical instrument costs. In addition, the homeowners or renter’s policy only covers damaged from “named perils” such as fire and theft, but not flood. One option for enhancing the protection for musical instruments under your home property insurance is to get a rider, sometimes called an endorsement, floater or scheduled personal property. This policy add-on provides additional coverage for specific valuables. A rider may have a lower deductible than the homeowners policy. Such riders usually are “all risk” providing much broader protection than “named perils.”
Also, not all homeowners insurance riders cover instruments for professional musicians, since there’s a higher chance of damage or loss. In that case, a commercial musical instrument policy is advised.
When deciding between musical instrument insurance through your homeowners policy or a specialized policy, here are some considerations.

Location

If loss of or damage to your instrument occurs outside your home—say, if you’re traveling to another state or country for a performance—is the instrument covered? Musical instrument insurance policies vary on how they handle this.

Value

How much is your instrument worth? Some companies have a maximum insured amount per instrument, which may narrow down coverage options. Also, a commercial, or specialized, musical instrument policy will provide several ways to value the instrument, depending on whether you want to get paid for a claim based on the instrument’s value at the time of the loss, an agreed-upon value determined when purchasing the policy or its replacement value at the time of the loss. A homeowners policy or rider may handle this differently than a specialized policy.

Deductible

Determine what your deductible is for both your homeowners policy and a rider, and compare that to a specialized policy. You’ll also need to take into account the cost of each policy and the coverage details. If the policy’s deductible is higher than the instrument’s value, then the insurance may not be useful.

Claims staff

Some insurance companies specialize in certain types of instruments. If you have a rare or highly valued instrument, consider working with a company who knows your instrument type well. Claims adjustors will better understand your instrument if there’s a claim.

Additional coverages

Commercial insurance policies have other coverage clauses that may not be available in a homeowners policy or rider. These are aimed at professional musicians who need their instruments for work. This coverage might include business interruption (compensating the insured if his or her instrument is lost or damaged when needed for a paid performance), coverage for borrowed instruments and rental reimbursement if the insured instrument is damaged.
If you have an instrument, whether it’s a rare, high-value one or a good quality student or amateur instrument, talk to your insurance agent about your options for insuring your instrument.

How to Buy Instrument Insurance

Photo Credit: LARK Insurance

What a special music policy costs, what it covers, when it makes sense for you by Erin Shrader
“You have to buy insurance when you don’t need it,” says Peter Anderson, president of the Anderson Group, one of a handful of companies specializing in musical-instrument insurance. That is, before disaster strikes.

At what value should you start considering purchasing a policy? “About $5,000,” says Ellis Hershman of Heritage Insurance. Even if your instrument isn’t quite that expensive, by the time you add a couple of decent bows to the list, plus a case, accessories, maybe a good microphone, even your sheet-music collection, the total value adds up surprisingly fast. At that value, insurance starts looking like a good idea, especially if you depend on your gear and can’t afford to repair or replace it.
There are a few things you’ll want to know before buying a policy. Each of the handful of companies handling musical-instrument policies offers similar services, but with a slightly different focus. For example Heritage specializes in professional-quality wooden instruments, dealers, and a unique workbench policy for makers and restorers. At the opposite end of the spectrum, the Music Agency focuses on insuring school-aged children, schools, and rental fleets, and offers policies beginning at $9.60 a year with a $15 deductible.
Merz-Huber, insuring musicians since 1937, covers a lot of orchestras and develops group programs with such associations as the American String Teachers Association, where the risk is shared by a pool of members. Belonging to an association may also get you a break on an individual policy with Clarion Insurance. “If you belong to a group, you’re out there learning to play and take care of your instrument, [and you understand] how to be professional,” says Dan Schoenfeld, president of Clarion.
That makes you less of a risk, he adds.

Where to Start

Research these companies on the Web to get a sense of their specialties and services. Then follow up with phone calls to the company that you feel most comfortable with to discuss your particular requirements. “Our competitors are very good at what they do,” says Bill Calter of Merz-Huber. “I don’t know any you wouldn’t be happy with.”

Perils & Premiums

The details of minimum premiums and deductibles vary among companies. For example, Heritage has a minimum annual premium of $250, but no deductible. This insures instruments and bows up to $20,000 or possibly $35,000, depending on exactly what is being insured and the risks involved. There is no one-size-fits-all policy with Heritage, Hershman says.
Anderson Group’s $125 minimum premium is half that of Heritage, but there is also a $250 deductible. By and large, deductibles serve more as an incentive for the insured to be careful than as a money-maker for the insurer.
Peril-prone instruments, such as cellos and double basses, are more expensive to insure. Bows, with their fragile heads, are high-risk items, too. Want to be covered for leaving your gear in an unlocked, unattended vehicle? That will cost more than insurance that covers you only if there’s a sign of forced entry at the time of a loss—at least with Heritage. At Clarion, it’s included, “fortunately and unfortunately,” says Clarion president Schoenfeld ruefully.
Merz-Huber won’t charge higher premiums for that, either. But as Calter explains, their policy basically dictates that you will be careful with your instrument. Circumstances count. “If you don’t care, we don’t care,” Calter says.