Insurance for a HiFi systems

[The Skorr]

Hi all. 

I've invested many hard earned dollars into my system so far and I'm still going to invest for years to come. But I'm a bit concerned that the insurance company I'm with doesn't have the right policy in place in case of theft. I have tried to explain to consultants over the phone what I have accumulated over the years but in most cases they don't understand what I'm talking about. So I fear that one day I may be unlucky and have my gear stolen and I won't be reimbursed what it is really worth.  They may only provide me with a "depreciated value" dollar amount.... Which I don't want. 

Has anyone got any advice on which insurance company/agency is best suited and has the right policies in place to cover HiFi equipment like ours. 

This would be much appreciated. 

[Ittaku]

I can't advise you on the depreciation aspect, but I suggest you take photos of everything, save it to a cloud somewhere so you can access it in case everything burns down in addition to getting stolen. Then if it comes to a claim and they don't believe you, you can go through them one by one in a photo.

[The Skorr]

Yep. I have done that. Thanks for suggesting. I don't think proof of purchase is my problem actually. My concern is for example in the event of a fIre and all my equipment is destroyed, the insurance company will only cover me at half the cost of what I spent on my system "A depreciated value" . But what I'm looking for is an agency that will pay me back every single dollar I spent on it. I hope that makes sense. Who do you use for your contents insurance if you don't mind me asking.? I'm with an insurance company here in SA. I speak to them over the phone and they don't get it. In case of fire or theft I want them to either replace my equipment like for like (or close too) or reimburse me to the full extent. But they avoid answering that simple question. 

[rantan]

Most reputable insurance companies have new for old replacement and most of them advertise the fact.

 

My policy has this and I have no confusion at all and I am not sure why you are having any issues at all. However, prior to entering in to any insurance policy one should always read the terms and conditions document. They are all in plain English and easy to understand.

If you really find them not suitable, you can cancel your policy at any time and receive a pro-rata refund, then find another company where your current issues will not exist.

[Kaynin]

^ +1

 

Or go through an insurance broker and explain to them what you want, let them find exactly what you need.  Also, they make claims on your behalf and argue for you, which I much prefer.

[audiofeline]

Many policies will also allow you to specify specific items to be covered, esp. if they are over a certain value.

 

I understand that "new for old replacement" works fine for something like a microwave.  How would it work for a 60-yr old vintage audiophile turntable? 

 

However, no matter what the policy is, I would expect that any insurance company would do anything in it's power not to honour a policy claim if they can get away with it, esp. if it is for high value.  I don't have confidence that our Royal Commission has put enough in place for the industry to become reputable again. 

 

Good luck. 

[Stump]

9 minutes ago, audiofeline said:

Many policies will also allow you to specify specific items to be covered, esp. if they are over a certain value.

 

 

As stated above. Specify specific items to be covered and PAY a percentage of the item  cost in premium's. Otherwise you will be very disappointed if you need to make a claim. 

Stump

[Cloth Ears]

It's essentially the same with all high value items. If I want a painting covered for what it's worth, I have to specify it on the policy, along with a dollar value. Same with Mrs CE's jewelry and fancy clothes (would you believe a silk jacket could be worth over 5 grand?)

 

Doesn't necessarily work that way for electronic equipment that is in the 'bought new, now 2 years old' categories. Similar to cars, you often only have replacement value - 2YO Renault gets you the money for a 2YO Renault. It's when you start looking at the car (Hi Fi) as an investment that you might be able to get an insurance company to play ball.

 

And, if it can be on the same policy as your home and contents, it'll be a helluva lot cheaper than if you have to get it extra.

 

Other things to think about - the total value of your contents versus your equipment. If it's more than half, you might have trouble persuading an insurance company that it's worth the risk of insuring you. Do you have a full set of deadlocks on doors and windows, alarms and back to base monitoring? All those can reduce your outlay for insurance and will persuade them that you're a better underwriting risk.

[Guest jakeyb77]

Rather than guess or find out what 40,000 other people have, do what @Kaynin suggested and tell a broker what you need. 
Not only is it plain and simple then but they also advocate for their clients with issues. 
It’s not something you want to mess around with after the fact. 

[Guest jakeyb77]

Many people are also underinsured. I have had a friend who had three generations living at home and they had $40,000 contents for about 6 people. House burned down and that $40,000 went in a couple of days 

Once you pay the bulk of the monthly payment for average cover it’s not that much extra to know you are covered for anything. 
Itemise just your wardrobe and you’ll get a shock if the next day you had to replace everything. And then there’s the kitchen, garage etc. 

Edited July 1, 2020 by jakeyb77

[Ratbob]

Hi , sorry this is a bit long.

You need to read read read. 

My hifi was stolen about 20 years ago. I had an old for new policy with a limit of ten years on the value so anything older than ten years had a reduced value by 10% per year. So read the PDS product description statement. That section did not apply to me.

Anyway I valued the gear at  $25,000 based on receipts.  I asked just to be paid out but they wouldn’t do it, stating that insurance is designed to return you to the state you where in before the event (theft) occurred. 

So after much ado and despite my receipts they went out confirming with hifi stores that it was my gear and subsequently delivered a list of what they thought were suitable replacements. I remembered their statement to return me to my position before the event. 

Man, I couldn’t believe some of the equipment offered, it was way better than my old gear because it wasn’t based on value I.e. a $5000 amplifier for a $5,000 amplifier, rather they worked on what was available to replace my 240wpc Yamaha M2 etc and the dollars weren’t so much an issue. 

So yeah maybe use a broker but definitely read read read the PDS.

[Guest jakeyb77]

Yeah I’ve had a similar thing.... insurance knew I paid $350 as I proved purchase. Similar spec item was now $5,500. 
They cut me a cheque for $5,500. 
Item was at least 5 years old or more 

[Southerly]

Some good advice here about equipment  but here's the bugger - LPs. 

 

No one has mentioned these and my vinyl is worth an awful lot more than my audio gear. I was lucky enough to buy lots of excellent vinyl at car boots in the UK at the end of the 80s and into the 90s'. Obviously no receipts, I only have receipts for vinyl I bought at the beginning of the 90s and through to 2001.  I can't remember now how much I paid for Santana - Supernatural but it's initial cost is nothing like it's replacement value now. I bought an unplayed  6LP Decca box set by two famous pianists for €2 at a street market where I used to live in the Aveyron SW France, mint it's value is up to £250. With over 1000 LPs. In the UK I was told I would need to use someone the insurance company  'accepted' to value the collection. Taking photos - how could I show the condition of each LP,  I worry about house fires, theft. 

 

There are three reasons I would seriously like to digitise my collection - advancing decreptitude, a hell of a lot work cleaning,storing, replacing cartridges etc. and the ease of using external SSD and copies of the same, so in the event of theft or fire etc. my lifetime collection of music is safe and guaranteed and a lot of money in the bank to boot.

 

As someone mentioned the insurance companies like to take your premiums but paying out that's another matter.

[The Skorr]

Thanks for the advice everyone. I guess I could research the policy and PDS and T's and C's for all insurance companies, but thats a lot of work sifting through all that. I was hoping that there would be an insurance agency that would have a dedicated dept like Shannons is to enthusiasts cars. But how silly of me to think that would exist.

I think you're right Kaynin, I'll contact an insurance broker and they can do the hard work for me. He or she might provide me with several insurer's to chose from, they'll be far more knowledgeable than I could ever be in that field. So it's a no brainer for me. Thanks mate. 

 

[mrbuzzardstubble]

I got rolled years ago. Stolen was a watch, 2×3m lengths of Monster speaker cable ($200 paid) and an old secondhand Meridian pre-amp that I paid $75 for. I had an new-for-old policy back then with CGU.

Imagine my surprise when I received two dockets, one for a jewellers for a watch and another made out to Grenfell Hi Fi. The hi fi docket was valued at about $3300. I ended up buying a Musical Fidelity pre amp and a grands worth of Audioquest speaker cable.

[GregWormald]

22 hours ago, The Skorr said:

Thanks for the advice everyone. I guess I could research the policy and PDS and T's and C's for all insurance companies, but thats a lot of work sifting through all that. I was hoping that there would be an insurance agency that would have a dedicated dept like Shannons is to enthusiasts cars. But how silly of me to think that would exist.

I think you're right Kaynin, I'll contact an insurance broker and they can do the hard work for me. He or she might provide me with several insurer's to chose from, they'll be far more knowledgeable than I could ever be in that field. So it's a no brainer for me. Thanks mate. 

 

As a hi-fi nut and an ex insurance claims clerk:

photos & descriptions;

insurance broker;

NOT depreciated value but current value or declared value or new-for-old;

be prepared for a hefty insurance premium.

 

The LPs are likely not replaceable like-for-like and many may not be available as digital, so ...

make digital copies of non-replaceables.

[The Skorr]

Yeah I agree. Thanks for advice Greg. Definitely going insurance broker.  I like new for old or declared value in policy. Will make that a must. 

Cheers.. 

[Guest DrSK]

On 01/07/2020 at 1:37 AM, The Skorr said:

Hi all. 

I've invested many hard earned dollars into my system so far and I'm still going to invest for years to come. But I'm a bit concerned that the insurance company I'm with doesn't have the right policy in place in case of theft. I have tried to explain to consultants over the phone what I have accumulated over the years but in most cases they don't understand what I'm talking about. So I fear that one day I may be unlucky and have my gear stolen and I won't be reimbursed what it is really worth.  They may only provide me with a "depreciated value" dollar amount.... Which I don't want. 

Has anyone got any advice on which insurance company/agency is best suited and has the right policies in place to cover HiFi equipment like ours. 

This would be much appreciated. 

QBE have been great with a recent electrical issue and a previous lightening issue. 

 

All items should be specified, which requires you to name the value. They also have a default hifi HT allowance if non specified up to a percentage of your total home contents value.

 

When specifying value watch out for exchange rate changes and in my instance, my mains and especially Bluray player (Oppo 205) increased in value since purchase. 

[Bellmouth]

Who knows who can provide insurance for equipment which resides  in a house which is deemed a  shack? It has no building permit.  For building and contents cover the residence must be a legal dwelling. Any help appreciated

[Kdjjdk Will]

I was with CBA home insurance 

 

years ago I had a break In . It was a speed junkie and I caught him as he sped away in his station wagon : my kuro krp500m was lying flat on the back . He was hammering it up the road

 

anyway the assessor wanted to replace my kuro with an LCD worth about $1000

 

”madam, if your Hermes handbag was stolen , would you think it appropriate that I offer you a Kmart handbag worth 29 bucks ?”

 

eventually cops found all my stuff. These junnkie got 3 months in the joint with 3 meals a day an Xbox a snooker table and sealy posteurpedic bed. In a Brazilian jail they would get daily floggings, eat rancid chicken heads and sleep a hundred to a room with a 3am tap on the shoulder.

 

bottom line is insurance companies are snakes and will use any excuse to fukkyouover when you have to claim. After all they have CEOS and executives who can’t survive on 3 million a year salaries.

 

ABSOLUTELY get a lawyer to check a policy before You commit. You don’t want them to offer made in China Kefs for your Focal utopias 

 

and still my kuro powers on despite being over speed humps from that flamin junkie.

 

whenthe judge asked him why he did it: “ I didn’t think anyone lived there”

 

commonwealth bank home insurance were all smiles and accomodating at the beginning , then you get treated like the criminal at the end .

 

have all your receipts scanned into a file you can access later as that’s the first thing they want

Edited July 15, 2020 by Kdjjdk Will

[fell off the boat]

38 minutes ago, Kdjjdk Will said:

bottom line is insurance companies are snakes and will use any excuse to fukkyouover when you have to claim.

This.

 

I have nothing but grieves dealing with insurance companies. They are a bunch of horrible human beings and do not deserve their place in this world. I pray everyday that they experience the suffering we have been through so that someday, perhaps someday, they would open up their heart and soul and change for the betterment of the world. Just fu*king do the right thing, please.

 

I feel sorry for the good people who work there, and a lot more for us as their customers who have suffered enough.

[hopefullguy]

its a pity you guys posting that you hate insurance companies dont read your policies, look for the cheapest policy, look for the easiest policy to take out and think insurance companies are your best friend.

 

i worked for a few years settling claims etc and always followed the contract conditions and the law. if not off to court it went for a judge to decide.

 

its not rocket science people.. you get what you pay for with the research you do. also go internet with no no name mobs you have never heard of and good luck to you.

 

never had a bad experience with insurance claims (fence, car, burglary, ) because i read the policy and pay the premium that suits my needs. if my needs change i change the policy. you need to be aware of your needs, no one forces you to have insurance.

 

under insurance is your fault, not specifically covering your "collection" is your fault, going cheap is your fault.

 

anyway most people cant be bothered until there is a claim then they whine to whoever will listen, usually a forum.

 

[andyr]

10 hours ago, Bellmouth said:

Who knows who can provide insurance for equipment which resides  in a house which is deemed a  shack? It has no building permit.  For building and contents cover the residence must be a legal dwelling. Any help appreciated

 

I think you are outta luck, B.  The dwelling containing the items you want insured needs to have building permit. 

 

Andy

 

[EHT007]

I've got insurance for my headphones and amp, covered for $7,000 at one low payment of 360$, per year. 

Would be interesting to see what some people are paying for their 100k+ systems 

 

I'm in the same position now, think ill go find a insurance broker. 

 

[Faust]

I recommend Shannons for house insurance. They will cover you for amount you agree on. It will cost you more but at least you are covered. They have been good to me so far. I've got a good policy that covers accidental damage too. If one of my kids damage some stereo gear that is covered as well. Before that I just signed up to whoever was the cheapest and when I needed to make a claim of course they refused to pay.