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AUDIO FORUMS >> General Discussion and Support >> Audiophile insurance options
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Message started by MontanaDude on 04/17/23 at 18:33:39

Title: Audiophile insurance options
Post by MontanaDude on 04/17/23 at 18:33:39

Anybody have a good recommendation for coverage for all our fancy gear?

We have both a homeowner's and generous umbrella policy with State Farm, but I was surprised to learn they actually limit the coverage for audio gear, and actually won't cover speakers for the reason that damage to one usually necessitates replacement of both.

I did look into Mercer/AMBA, but you actually have to join the American Federation of Musician’s Union to qualify, which seems like a lot to deal with.

Can anybody confirm they have great coverage of all their audiophile gear (and ideally, their LP collection), and if so, who's it with and how's it structured?

Title: Re: Audiophile insurance options
Post by RuthOlson on 04/19/23 at 05:34:52

very interesting, good job and thanks for sharing such a good blog.
mybkexperience

Title: Re: Audiophile insurance options
Post by Danny Boy on 04/19/23 at 08:27:30

What is it you are looking to cover? You mentioned damage to a speaker. Every policy that I was ever aware of does not cover wear and tear, or accidental damage. Your State Farm umbrella policy is an excess liability policy that protects your assets if you have a claim against you, but your HO covers only covered perils such as theft and fire up to the coverage limit, and subject to your deductible.

I have to say I have never heard of limits for audio gear (I'm not saying they don't exist, but usually personal belongings is a listing on the policy, and it should include replacement cost. Less the deductible, of course. I have been covered by USAA for 25 years, and I know this is how my gear would be covered.

Fire, theft, and wind would be my biggest concerns. Flood/water damage is generally not covered unless a hole is punched through the roof, wall, or window due to wind. Otherwise, you need a flood policy. Keep receipts, owners manuals, and take pictures of everything. These items show proof of ownership and I accepted them all the time when I worked claims. Boy, I'm glad I don't do that any longer. :)

By the way, SF has a Personal Articles policy with a 0 deductible. It does have a broad pair and set coverage (2 loudspeakers), but I still believe accidental damage would not be covered.

Title: Re: Audiophile insurance options
Post by Tony on 04/19/23 at 14:54:34

As the value of my system has grown, I have thought I should ask my insurance agent about the ins and outs of covering my gear. Living in an earthquake part of the state makes one think of these things. Perhaps someone in the Decware community with experience with stereo gear coverage specifically might be able to say more about possible options.

Thanks, MD, for raising the question.

Title: Re: Audiophile insurance options
Post by 4krow on 04/19/23 at 16:13:32

First, it is tough to get the average agent on board to understand that it isn't a huge stack of Sony equipment that you want to insure. As always, you should have decent photos of everything. If possible have the agent come by to actually see what it is that you are talking about. Don't let them generalize it like the rest of your possessions. if they won't get on board, ask them to recommend a company who will. Maybe that will be the wake up call.
I know a woman who spent $900 on a rock necklace. Seriously, just plain grey little rocks. Well, that is what it means to me. So, without a back story, it means nothing. BTW, in this case, even WITH a back story, I wouldn't touch it as an insurer. And That is probably about the same thinking that your 'locally trained agent' has for your system.
Just to add, receipts are mandatory.

Title: Re: Audiophile insurance options
Post by Erich on 04/20/23 at 07:21:28

My State Farm policy, Illinois, HW-2113 covers personal property and has no exclusion for electronics for reproduction of sound. It does not cover musical instruments used in a business or stereo equipment for vehicles.

My guess is: they’ll pay, but I would have the system documented in photos on the cloud.

Title: Re: Audiophile insurance options
Post by MontanaDude on 04/23/23 at 18:23:37

Quote:

By the way, SF has a Personal Articles policy with a 0 deductible. It does have a broad pair and set coverage (2 loudspeakers), but I still believe accidental damage would not be covered.

Thanks Danny Boy. I had previously looked into this. Here's what State Farm of Montana said:

Quote:

I did a little more research on these speakers.

[My colleague] and I were unaware that there are certain items, including speakers, that are not eligible to be covered under a personal articles policy.

That said, they are still covered under your homeowners policy, just not under the high value item policy.
[...]
Unfortunately state farm doesn’t have any other options for the speakers.

So it could be that, as others have noted, other carriers -- or even SF in other states -- do cover speakers under a PA policy. But that is decidedly not the case here in MT.

Title: Re: Audiophile insurance options
Post by Danny Boy on 04/24/23 at 02:42:51

Yeah, I didn't figure that would cover that type of gear, but you never know. You're covered under your HO for all of the major stuff, less your deductible, of course. The pair and set is designed for high-value items, and you would have 2 of them, such as earrings. Those types of policies cover loss, which the HO does not.

If you have a fire, your will lose both speakers. Same goes for theft or any other covered perils. Have your proof of ownership in order, and you should be good. The thing that sucks the most is when anything happens to your contents, you are paid a portion to get started on the buy back. You have to fund it upfront, then get reimbursed for the rest when you can show a new receipt. I am guessing that is pretty standard practice with all carriers. So you will only get 10K to purchase that 20K system back. Once you re-buy, they pay you all of it. Most folks don't know this.

Of course, if nothing happens...

Title: Re: Audiophile insurance options
Post by Cupmartket on 04/24/23 at 05:32:19

nice topic and I get great things from its comments

______________
Papa's Pizzeria

Title: Re: Audiophile insurance options
Post by Kamran on 04/26/23 at 20:47:31

Thank you for starting this thread as it led to a positive outcome. I called my insurance company two days ago to inquire about the coverage I had. Here is what I learned:

1) As long as the audio equipment is not considered a computer—it will be covered minus the deductible.

2) If the damage is due to flooding if my sump pump goes out of commission—it’s only covered up to $5000. Apparently, that’s an add on that I didn’t have on my policy so I immediately had them add it over the phone. $5K is better than 0. The actual line item is called Water Back-Up And Sump Discharge Or Overflow.

3) Stuff that is covered includes (but not limited to) Fire & Lightening, Theft, Explosion, Vandalism, and Accidental damage due to smoke.

What I forgot to confirm is whether it applies to items bought new or also used gear.

Title: Re: Audiophile insurance options
Post by bramar on 04/26/23 at 21:39:30

Kamran, good post thanks for sharing.

May I ask who your insurance company is?

Brad

Title: Re: Audiophile insurance options
Post by Kamran on 04/26/23 at 23:53:39

It’s one of those regional ones- NJM Insurance—covering Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania residents.

Title: Re: Audiophile insurance options
Post by bramar on 04/27/23 at 00:04:28

Got it, thanks Kamran