Instrument Insurance - What is my gear worth in a claim?

Posted by David Hamilton on Dec 30, 2013 3:35:00 PM

musical instruments - Replacement Cost vs. Replacement Value


I have insurance for my musical instruments and gear. A common question: How will these items be valued if I have a claim?

Below is a breakdown of how instruments & equipment are valued under the Front Row Music Instrument program:

  • Replacement Cost, except if agreed value is requested. If agreed value is requested, a current appraisal less than 5 years old must be provided. To maintain agreed value, an updated appraisal must be provided every 5 years.
  • Replacement Value is the cost to replace the property/equipment with the same or other similar property of comparable material and quality used for the same purpose without deduction for depreciation.

If your instrument is 5 years old or older and you do not have an appraisal, your instruments will be valued at actual cash value. This is the amount equal to the replacement cost minus depreciation of damaged or stolen property at the time of the loss. This means that in the event of the loss, your settlement will be based on the smallest of the following amounts:

  • The actual cash value of the lost or damaged property at the time of loss.
  • The amount it would cost to repair or replace the property with similar kind or quality.
  • The limit of coverage that applies to the property.

Topics: musical instrument insurance