Our wonderful insurance provider, Heritage Insurance Services Inc., has just sent out another great newsletter highlighting the differences between your Homeowners insurance and that of a dedicated musical instrument provider. This is a common concern and Heritage has the precise answers for you here. These are reasons we use Heritage to cover not only Trilogy Guitars but our personal instruments as well. Below is the reprint of the Heritage newsletter. Enjoy!

Use of Homeowner Policies to Insure Musical Instruments

We often get asked to explain why someone should insure their personal instruments/equipment with us, versus placing them on a schedule on a homeowner policy.  Homeowner policies vary from company to company, and from policy form to policy form.  Generally speaking, the most common homeowner policy is the “HO-3” policy form, which can have a special endorsement (the “HO-61” endorsement) attached to the policy at the client’s request.  This endorsement covers “Scheduled Personal Property”, and is copy written by the Insurance Services Office, who then provides the insurers with the endorsement form.  The most common and practical use of this endorsement is to cover valuables such as jewelry or fine arts.  Even if an insurer uses their own forms and definitions for scheduled personal property, the intent shadows the HO-3 and HO-61 forms.

The basic problems with using this endorsement to insure musical instruments and equipment are as follows:

A.) “You agree not to perform with these instruments for pay unless specifically provided for under this policy.”  So reads the HO-61 endorsement.  Seldom, if ever, will a homeowner carrier approve professional use of an instrument.  Therefore, if you play for any remuneration at all, you have voided the terms and coverage of the policy contract.

The professional is best covered under a Heritage Musical Instrument Policy, as it is designed to cover those who earn money from the playing of their instruments.

B.) The value of the property (instruments/equipment) insured is not agreed upon, but will be ascertained ay the time of loss or damage.  Even though an appra isal was requested at the placement of the coverage, the carrier may still deviate from that figure.  The insurer may disagree with the insured as to the value and push the settlement into arbitration or litigation.

With an appraisal, Heritage policies provide agreed value coverage, which guarantees the amount the insured will be paid for the loss.

C.) There is nothing specific with regard to devaluation caused by breakage in the homeowner form.  Claims representatives may agree or disagree on this point.  Policies are quiet on this issue.

Heritage policies specifically include devaluation.

D.) Agents and employees of homeowner insurance companies generally have a very limited knowledge of musical instruments; that is, their value, devaluation, repair costs, etc.  This type of knowledge can be of immense help win solving coverage and claims problems quickly.

Heritage Insurance Services maintains communication with literally hundreds of resource people in the various music trades, and uses a professional consultant to coordinate claims and valuations.

E.) Many homeowner carriers will not accept high valued musical instruments on their policies. Some companies may refuse all musical instruments and equipment.

Heritage Musical Instrument Insurance insures instruments from the low four figures to the high seven figures.  Large or small values are not a problem.

CONTACT

INFORMATION

826 Bustleton Pike

Suite 203

Feasterville, PA 19053

1-800-289-8837

(Fax) 215-322-5854

EMAIL: info@musicins.com

WEB: www.musicins.com