Instrument Insurance Pitfalls

[tbn.al]

As an insurance agent I worry when I see posts on TubeNet reflecting instruments insured under homeowner's policies. Please be aware that every insurance company I know of, and with 33 years in the business that is quite a few, has an exclusion on business property. That is what a horn is to a professional musician, just like a plumber's tools to a plumber. If you are a professional, horns are simply not covered. What constitutes a professional? If you take money for playing you are a professional in the insurance company's eyes, even one gig for $25. There are a few companies out there that will give a pass for someone who only profits from playing occaisionally. But be sure you get it in writing with conditions from the company, not just the agent. Even if he has an agreement with his underwriter to cover your specific instance, "I only get paid 3 times a year", 5 years from now when your horn is stolen that underwriter may not even be there, or remember. In such cases the agent is powerless, and so are you. My advice to anyone who takes money for playing, or might in the future, is to insure with Clarion. They have a stellar reputation with profession musicians. I am not connected in any way with Clarion. Na axe to grind. Just trying to keep someone from getting a nasty surprise.

[Ben]

Some home owner's policies allow for professional compensation - My personal policy as a "professional" only cost me a few $'s more (seriously, low double diget figures here!) than the "non"-profession policy.

In the near future I will have to go through a policy like Clarion, as I have moved into a floodzone area, and my current PAP insurance will not cover that.

[tbn.al]

Some home owner's policies allow for professional compensation - My personal policy as a "professional" only cost me a few $'s more (seriously, low double diget figures here!) than the "non"-profession policy.

In the near future I will have to go through a policy like Clarion, as I have moved into a floodzone area, and my current PAP insurance will not cover that.

You are correct, but when they do allow for compensation it is with an endorsement to the policy, not in the base policy language. As long as you have it in writing from the company and you follow their caveats, you are ok. Never take somebody's word that your instrument is covered.

[bort]

Does it reset every year?

I had 1 paying gig last year. None so far this near, nor do I expect any. I guess last year I was a professional... this year...?

[Rick F]

I'm looking into purchasing insurance for my new Miraphone 5050 euphonium. I found out my home-owner's policy won't cover for instrument theft or damage. I just requested a quote from Clarion. I already got a quote from Anderson's (underwriter Hanover), who insure all of the Boston Symphony instruments. For $8K coverage ($250 deductible) it will cost me $150/yr.

[Mark]

...or keep big dogs at the house, and never let instruments out of one's sight away from home.

bloke "who never utilizes the 'secured room at the hall' thing (with $12/hr. strangers 'guarding' it) and always brings instruments (even though somewhat unwieldy) into restaurants and/or sits at a table by the window adjacent to the parking place"

Any type of compliant/reliable insurance is OK, but not having to use it is always much better.

+1 and I also have insurance.

[Mark]

Also, homeowner's policy\ies may place a dollar limit on musical instruments and they may only pay original cost instead of replacement value.

[tbn.al]

The problem is that you usually never know exactly how the claim will be treated on this issue until the disaster happens. Then you may have to lie about accepting pay for play or get screwed. Better to just go ahead and get a professional policy if there is any doubt.


I have a freind who is the orchestra director at his church. He played a trumpet organ piece at the church service and then went out to lunch. His horn was stolen while he was at lunch. When the insurance company found out, not my company thank God, because he answered their questions honestly, that he was the paid orchestra director and a very minor part of his responsibilty was to play occaisionally, they refused to pay the claim. He had no idea he was in trouble until the end of the conversation. He had the trumpet on his home policy for years before he was the orchestra director and never though about this issue. Why would he? Better safe than sorry, IMHO.

[tofu]

Could you address a scenario question for me. Lets say as a non-pro I have a horn in the car. Car gets stolen and I didn't have instrument insurance and my homeowners did not cover it would my auto insurance possibly cover it?

Also with instrument insurance how often will an instrument need to be appraised or reappraised. Yearly - every couple years etc.?

Thanks for the insight.

[tbn.al]

There are several categories of personal property that need to be scheduled - pay extra premium to have them covered. Musical instruments fall into this category. This schedule also has a seperate deductible. You can have a high deductible on everything else and no deductible at all on a schedule. Insurance companies differ on rules for requiring appraisals. Most will accept a sales receipt. If you do need an appraisal a music store can usually handle it for you. Sometimes you will be allowed to fill in the blank as far as how much insurance you want within reason. The coverage on any personal property in your car from the car policy is iffy. Most companies have a $500 or $1000 limit and exclude things like cd players and electronics.

[ScottM]

I have been in insurance claims for 34 years. If you are able to get on here and post you are able to read an insurance policy. We have to write them at the level of a sixth grade education. Take time to read it and ask your insurance agent for help if need be. If he doesn't want to help, find a new agent.
The earlier posters are correct that if the instrument is used professionally at any time it will be considered to be business equipment under most homeowners policies. Most Homeowners policies have a limit of coverage for business equipment, and may have other coverage limitations as well, like where it is only covered at home, not off premises. The other issue is only some perils are covered under the personal property provisions of a homeowners policy. It is called named peril coverage as the perils covered are named (listed) in the policy.
A prior poster mentioned stolen from a car but most auto policies only cover a couple hundered dollars for stolen property and business property is often excluded. However, a home owners policy will supply coverage for the property anywhere in the world. This includes items stolen from an auto, as long as it is locked, under most policies.
To get all perils coverage, get the instrument insured on an inland marine policy. It will give coverage for a wider variety of perils and will cover for an increased premium the instrument as business equipment. I have two horns insured that way and the price is quite reasonable. You do need to add for the cost of the case and mouthpiece so if you are carrying a couple of blokepieces add the cost in for them. The value is usually the actual cash value so think price for a used horn of same make and model. You may be able to get a stated value policy where if the horn is a total loss or or stolen, you receive the amount listed on the policy for the horn.
It does pay to be smart and pay attention to where you leave your horn at festivals and other events. When possible, put the horn in the trunk of the car, use a cover in the back of an SUV to hide the horn. I too prefer to keep it with me when possible, like Bloke does. Theft is a problem, but so is falling off a riser or just tripping and falling with the horn while walking. These type of accidents would be covered under the inland marine policy but not under a regular homeowners policy as there isn't a covered peril.
ScottM
PS: I'm an insurance claims rep but not your rep so if you have questions on your policy contact the people that issued it.

[tbn.al]

Thanks Scott. What he says is true. The original intent of this post was to alert tubeneters to be sure their insurance will fix or replace a horn in the event of loss or damage. There are a bunch of holes in a homeowner's policy that have to be plugged for it to do the job. The biggest is the professional use issue. If you have your instrument insured under a homeowner's policy and make any money from the music business, your must make certain that your claim will be paid for your personal circumstances, in writing. Otherwise bite the bullet and buy a policy designed to protect paid musicians.

Here is the operative language from a representive company's Scheduled Personal Property policy.

"PERILS INSURED AGAINST

We will cover for all classes of scheduled personal property except pets, for risks of direct, physical loss to the
property described with exception to:

6. Tools when used for business or occupational purposes."

[tubaport]

This post was extremely helpful to me, as I happen to be in the process of attempting to insure my two horns. I contacted Clarion and am now insured with a replacement value of $24,000 at approximately $15 a month (well worth it, considering all that they cover). Prior attempts to contact Liberty Mutual (through my home owner's policy) was a complete failure and Clarion made the process very simple. I highly recommend contacting them if you are in the market for insurance. Thanks again!

[Alex C]

Our instruments are were added to the homeowners policy as an extra cost rider (not sure if that's the right term). The piano cost was about $100 because it is not a 'professional' instrument. Even though both tubas together are worth about half the value of the piano, the tuba policy was $150 because they are 'professional' instruments.

The policy looks great to me, if severely damaged or stolen, the insurance will pay the replacement value of the horns. I hope I never have to use it.

[J.c. Sherman]

God help me, this is a real challenge for some of us...

I make most of my professional fundage through being a jack-of-all-trades low brass player; which translates into a LOT of instruments. Some are insured, of course, but it's positively unaffordable to do them all...

And that royally blows.