Musical instruments are precious property whether you use it professional or personally. In both the cases, it is important that you choose the right music insurance company and get the instrument insured. Insurance will help you in several ways. From paying for any damages incurred on the instrument to replacing it, insurance helps in several ways. If you are a professional working in the music industry, it is impertinent that you insure as many instruments as you can. Though initially premium payments may seem as a headache, the returns you get when any untoward incident happens are unbelievable.
One of the first things you need to know before purchasing any insurance is getting the instrument assessed. At the end of the day, the insurance company will evaluate the worth of the instrument themselves or send someone to do so before finalizing on any policy. You have to keep in mind that an old, antique Gibson guitar will be worth more in insurance than a guitar you recently purchased. On the other hand, a broken down piano that’s been occupying space in one corner of the house may be worth nothing in insurance in comparison to a new, sophisticated piano you recently purchased.
Let’s take a look at how insurance companies breakdown the valuation of musical instruments.
One of the first things you need to know before purchasing any insurance is getting the instrument assessed. At the end of the day, the insurance company will evaluate the worth of the instrument themselves or send someone to do so before finalizing on any policy. You have to keep in mind that an old, antique Gibson guitar will be worth more in insurance than a guitar you recently purchased. On the other hand, a broken down piano that’s been occupying space in one corner of the house may be worth nothing in insurance in comparison to a new, sophisticated piano you recently purchased.
Let’s take a look at how insurance companies breakdown the valuation of musical instruments.
• The insurance company will first assess the replacement cost of the instrument. This means in any event if the instrument has to be replaced, what will be the price of it on that particular time. However, the replacement cost will not be a matter of assessment if an agreed value is decided upon between the insurance company and policy-holder. In such a case, current appraisal which is less than 5 years old must be provided. The replacement value will be updated every 5 years.
• While buying any musical instrument insurance, if the company sees that your instrument is not appraised for the last 5 years, the instrument is valued at actual cash value. The actual cash value is of importance especially if the instrument is lost and a claim is filed. Actual cash value is regarded as the amount equal to the replacement cost after taking into consideration any depreciation of the damaged or stolen instrument during the time of the loss. This assessment in the event of the loss of settlement is based on the smallest of the following amounts –
* Cash value pertaining to the loss or damaged instrument at the time of loss,
* Cost of repair or replacement of the instrument using similar quality material,
* The limit that applies to the coverage of the instrument.
Assessing the true value of a musical instrument is very important as it allows you to buy insurance at the right price. Companies which offer insurance for retailers often stress on the importance of valuation. When you are insuring several instruments at the same time (because they are all primarily used at the same time), valuation helps. Next time you buy musical instrument insurance, make sure you know the value of your instrument.
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