Great information, and timely as we are changing our house insurance
this month! Thanks.
Lou Judson =95 Intuitive Audio
415-883-2689
On Mar 8, 2007, at 10:53 AM, Rich Peet wrote:
> OK, a hard and specific subject. How to insure your recording
> equipment.
> My discussion here is from a perspective of MN, USA.
>
> Disclaimer:
> My background is that of a licensed and experienced claims adjuster.
> As a condition of that license my state requires that I can not sell,
> recommend, or give specific advise to anyone or help with problems any
> of you may have. This is not intended to be a complete discussion as
> policy wording is complex and varies. This post is to provide
> information on the process I went through within MN to secure coverage
> and that only. This means you are still on your own.
>
> There is more than one way to accomplish the insurance of field audio
> recording equipment. Under the standard coverage afforded under a
> standard HO-3 (homeowners form) there are problems with some
> conditions as it pertains to our recording equipment. Specifically
> you need to watch, Business Use Exclusion, Mysterious disappearance
> coverage, Breakage, Perils covered, Territory covered, deductible, and
> of course price.
>
> I look first at the HO-3 unscheduled personal property coverage. This
> is for my stuff only not others and often based on 50% of the value of
> the insured house within the USA and 10% of that coverage anywhere in
> the world. Problems to look at include a $500 limit on property used
> in business. Named peril coverage (read the form breakage is not one
> of them). Theft coverage often under a higher deductible. Valuation
> unless additional $ paid is based on actual cash value which includes
> depreciation. $5,000 limit on electronic data processing equipment (no
> case law known by me on if digital audio recording equipment falls
> under this). And the big exclusion is partially stated here, "any
> device, accessory ... for recording or playing back ... sound ...
> which may be operated from the electrical system of a land motor
> vehicle... .
>
> Second, I looked at the "Scheduled Personal Property Endorsement" This
> is where you normally would schedule specific property such as your
> camera equipment. Recording equipment needs to go under the section
> for "Miscellaneous Personal Property" What you get for around $17.00
> per $1,000 property per year no deductible and removal of the
> exclusion for "Mysterious Disappearance" as this coverage is not named
> peril but "all risk", with additional exclusions such as electrical
> surge. Business use is still excluded. That strange wording as above
> regarding "which may be operated from the electrical system of a land
> motor vehicle" is still there. Therefore this is not a good option
> for recording equipment.
>
> Third is the choice I made. "Portable Tools and Equipment Endorsement"
> Business use is ok if items are specificall scheduled. $250. per tool
> if not scheduled and you bought an amount of Blanket Coverage. $50.00
> deductible. All risk (coverage afforded if you drop it) but Mysterious
> disappearance is not covered, (that means you can not establish an
> actual theft). Coverage is only within the USA and Canada. Cost is
> around $35.00 per $1,000 property per year. That strange exclusion as
> stated above is gone.
>
> Last thing I should mention is a common "Supplementary Coverage" found
> in HO-3's. This is usually automatic with no additional cost. "Damage
> to Property of Others". Up to $500 per occurrence even if you are not
> negligent or legally liable. This means that when you borrow a chunk
> of recording equipment from a friend and when you return it you hear
> there is something now wrong with it. This is covered without a
> deductible. Still there is a Business use exclusion.
> I am not going any deeper than this on the topic of what happens when
> any of you who damage other people or their stuff.
>
> My advise overall is to be honest with a good insurance agent of your
> choice.
>
> Rich
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