HELP! Any theft insurance people wanna answer a question?

[atticus1019]

I always have to learn things the hard way. Lesson learned: always, always, ALWAYS schedule your gear. My car got broken into on Saturday night and let me tell you- they were some lucky thieves... stole both of my pedalboards, a mic, and a focusrite interface. All told ~$3600 worth of equipment. They got into my car and nothing of value was in there, but they popped the trunk and hit the jackpot.

So when talking with my insurance company, she was first asking what I do for a living (I’m a musician), she then asked what was taken (I told her), she then asked if I make money using what was taken (I didn’t lie), she then informed me that since I make money using what was stolen, the claim would be capped at $2500. So the most I can get is $1100 less that the value of what was taken and then there’s the $500 deductible. So all told, I’m out $1600 because I was honest with the insurance company.

Mr question for all you insurance gurus out there is this- do I have any options for the remaining $1600 that isn’t covered? I went ahead and added my guitars and the higher end stuff to a scheduled plan.

Any help would be appreciated

[frankmcr]

Originally Posted by atticus1019

I always have to learn things the hard way. Lesson learned: always, always, ALWAYS schedule your gear. My car got broken into on Saturday night and let me tell you- they were some lucky thieves... stole both of my pedalboards, a mic, and a focusrite interface. All told ~$3600 worth of equipment. They got into my car and nothing of value was in there, but they popped the trunk and hit the jackpot.

So when talking with my insurance company, she was first asking what I do for a living (I’m a musician), she then asked what was taken (I told her), she then asked if I make money using what was taken (I didn’t lie), she then informed me that since I make money using what was stolen, the claim would be capped at $2500. So the most I can get is $1100 less that the value of what was taken and then there’s the $500 deductible. So all told, I’m out $1600 because I was honest with the insurance company.

Mr question for all you insurance gurus out there is this- do I have any options for the remaining $1600 that isn’t covered? I went ahead and added my guitars and the higher end stuff to a scheduled plan.

Any help would be appreciated

Well, one thing is to go over your policy line by line (as it was in effect at the time of the theft) and be absolutely certain that she did not make a mistake (or maybe even "a mistake") about that cap (which does not appear to me to make any sense at all).

[justonwo]

This is very common for musical instrument policies. They always ask if the instrument is used to make money. The risks the insurer incurs are different for a working musician (higher) than a casual player from a loss standpoint. I think you’re probably out of luck in this case. Working musician vs hobbiest is definitely a category of interest in the insurance world, so I’m not surprised the coverage is different.

That totally sucks, regardless. I’m really sorry that happened to you. I would be upset to find out my coverage is limited, to boot.

[Rev Tim T]

Was this a home owner's policy?

I am a carpenter by trade but also a part time pastor. I only get paid for my ministerial duties when I preach (or do a wedding or funeral) or provide music for special services like a revival.

My wife and I keep our amps at church (so we don't have to set them up every week) as we play every week at church. Our church caught on fire and our amps (and stands and all like equipment) were destroyed. My homeowners insurance (Nationwide) would not cover anything because I was a "professional" and our church's insurance was a joke. We had a few new amps (less than a year old and had receipts) plus my ones which were vintage and in excellent condition. All told over $5,000 worth of stuff - church insurance $800

I have since purchased Heritage and all of our instruments and "stuff" (mics, cases, cables, pedals etc) are listed. We have an agreed on value for each instrument (value covering the instrument, case and all accessories in the case).

The only thing our agent really stressed was if something was stolen from a car it better have been locked and there better be evidence that the car was locked. (jimmied door, busted window etc.)

Hopefully we will never have to use it.

I feel your pain.

Tim

[Rev Tim T]

I guess I didn't answer your question. If it was a music policy other than your homeowner's did you check your homeowner's insurance.

Now I think I will have to check with Heritage about my coverage after reading some of the replies to your post. I am under the impression that since I have agreed on values for all my instruments I am covered even if I am considered a "professional."

Tim

[ManyMartinMan]

You have automobile insurance. You have homeowner's or renter's insurance? One will have a higher deductible which you can't get around. Check both to see which one is better for the claim. Many, including myself, have a scheduled policy for our professional equipment that covers theft, damage, loss, shipping.... Sounds like you've gone that route now. Because a vehicle/car can be broken into so easily is why I never leave anything, not even a CD in my car.

Originally Posted by atticus1019

...So all told, I’m out $1600 because I was honest with the insurance company. ...

No. You're out $1,600 because your equipment was stolen and that's what your chosen policy covers. The truth was expected.

[PorkPieGuy]

It seems to me that they should give you MORE money if you use the stolen gear to make money. That just seems backwards. It's like, "Oh, you need this for a job and it was taken from you, so now you can no longer work? I've got a 'cap' for that." It's just weird to me.

I have a separate policy for all of my music gear. I think it's called an inland marine policy or something like that. Every piece of gear that's insured has serial numbers submitted, and as far as dollar value goes, I valued at MSRP, not the "street price." The difference should be more than adequate to make up for any deductible.

The worst thing about getting gear stolen is not that you lost the gear; its the utter feeling of violation. That sickening feeling is the worst part of all. Even if every red cent was given back, the feeling of being violated can never be paid back IMO (I'm talking from experience here). I'm really sorry this happened to you.

[DavidE]

Originally Posted by atticus1019

I always have to learn things the hard way. Lesson learned: always, always, ALWAYS schedule your gear. My car got broken into on Saturday night and let me tell you- they were some lucky thieves... stole both of my pedalboards, a mic, and a focusrite interface. All told ~$3600 worth of equipment. They got into my car and nothing of value was in there, but they popped the trunk and hit the jackpot.



So when talking with my insurance company, she was first asking what I do for a living (I’m a musician), she then asked what was taken (I told her), she then asked if I make money using what was taken (I didn’t lie), she then informed me that since I make money using what was stolen, the claim would be capped at $2500. So the most I can get is $1100 less that the value of what was taken and then there’s the $500 deductible. So all told, I’m out $1600 because I was honest with the insurance company.



Mr question for all you insurance gurus out there is this- do I have any options for the remaining $1600 that isn’t covered? I went ahead and added my guitars and the higher end stuff to a scheduled plan.



Any help would be appreciated

You’re out $1600 because you chose a high deductible and failed to obtain the proper insurance. It’s up to you to be properly insured. Your gear was business personal property. All homeowners polices include a cap for many categories, including business personal property. Look into musical instrument insurance from Heritage or Clarion.

[jhmulkey]

Originally Posted by PorkPieGuy

It seems to me that they should give you MORE money if you use the stolen gear to make money. That just seems backwards. It's like, "Oh, you need this for a job and it was taken from you, so now you can no longer work? I've got a 'cap' for that." It's just weird to me.

It sounds weird to me as well. The only rationale I can think of is that they're saying the profit you've made with the equipment covers the loss above the cap.

[RagtopGT]

Originally Posted by DavidE

You’re out $1600 because you chose a high deductible and failed to obtain the proper insurance. It’s up to you to be properly insured. Your gear was business personal property. All homeowners polices include a cap for many categories, including business personal property. Look into musical instrument insurance from Heritage or Clarion.

^^^THIS^^^

I retired after over 34 years as an insurance claims adjuster. Very few insureds actually take time to read their policy, or select the least expensive coverage. When a claim is filed the insurance company is blamed for not paying what the customer feels is owed.

[MrDB]

Business property is a restricted coverage on most Home policies. Losses to that property are generally capped at some specific number, which varies between companies. Musical instruments owned by a professional musician are business property. Simple as that.

You might point out to your claim rep that the deductible applies to the total amount of the loss ($3600) not the $2500 cap, so your claim payment should be $2500 not $2000.

[Mr. Jelly]

This can be equated to a construction contractor. They get their tools stolen all the time. The reason is they have their tools in a vehicle 24/7. It's also the reason pawn shops have so many tools to sell.

[Murphy Slaw]

Originally Posted by DavidE

You’re out $1600 because you chose a high deductible and failed to obtain the proper insurance. It’s up to you to be properly insured.

He probably save $1600 in his lifetime with the higher deductible and lesser policy.

Insurance is simply paying for loss in advance.

I've been underinsured for many decades. I'm tens of thousands of dollars ahead.

[RagtopGT]

Originally Posted by Murphy Slaw

I've been underinsured for many decades. I'm tens of thousands of dollars ahead.

I hope you're referring to just HO property insurance. If you also apply this to auto or personal liability insurance you may be tens of thousands ahead, but one stupid and catastrophic mistake can set you back hundreds of thousands of dollars and completely destroy your and your family's lives.

I sleep well knowing that I probably have more insurance than will ever be needed. But just in case.....

[jwayne]

Originally Posted by RagtopGT

I hope you're referring to just HO property insurance. If you also apply this to auto or personal liability insurance you may be tens of thousands ahead, but one stupid and catastrophic mistake can set you back hundreds of thousands of dollars and completely destroy your and your family's lives.

I sleep well knowing that I probably have more insurance than will ever be needed. But just in case.....

I don't think this is likely since every state has mandated liability insurance for auto.