Part II: exclusions, considerations, filing a claim, and tips
This is the second part of a two-part blog series titled, “Music to my ears: Insurance coverage for musical instruments”. Part I covers policy options.
Professional and amateur musicians alike can purchase insurance to cover their instruments.
Musical instrument policies are subject to exclusions and requirements, which may vary. Requirements under the policy are another important component.
Exclusions
Some common exclusions in musical instrument coverage include:
- Wear and tear, inherent defect, deterioration, and vermin damage.
- Breakage of strings, reeds, or drumheads while the instrument is being played.
- Neglect, such as the failure to maintain or properly store the instrument.
- Loss or damage during maintenance, repair, or restoration.
- Humidity, aridity, or temperature extremes (unless caused by storm or fire); condensation; dampness; frost; dust; effects of sunlight; fading; and changes in color, texture, or finish.
- The cost to obtain an estimate or quote to replace or repair the musical instrument.
- Damage or loss while the instrument is in an unattended vehicle (though cover may be obtained, sometimes limited by the night-time clause, excluding coverage for loss or damage of instruments left in a car between 10 p.m. and 6 a.m. There may be no coverage without forced entry).
- Transit by air, postal, or other delivery transit.
- Costs as a result of being unable to use the musical instrument (which may be covered by business income loss coverage under a commercial policy).
- Unexplained disappearance.
- Intentional damage.
- Damage due to pollutants.
- Governmental or military action, war, and terrorism (though cover for terrorism may be purchased from some carriers as an endorsement for an additional premium).
- Nuclear hazard.
Some exclusions may include anti-concurrent causation language, precluding coverage when the excluded cause of loss is involved, whether there are other causes or not. In particular, the nuclear hazard, war and military action, and pollution coverages may be excluded regardless of whether any other covered cause of loss is also present.
Other considerations
- Valuation issues
Insurance carriers providing agreed value coverage require an appraisal for valuation purposes when they issue and/or renew a policy. Appraisals should be reviewed at renewal time, and they should be updated at least every three years. If the instrument is extremely rare, insurers may request their own appraiser prior to issuing coverage.
The value of the insured instruments may be determined at the time of loss or damage, even though an appraisal was required at the time of placement. The insurer may force the insured into arbitration or litigation regarding valuation. If your instrument is more than three years old, the policy should include new for old cover so you can get full replacement value.Continue Reading Music to my ears: Coverage considerations for musical instrument insurance (Part II of II)