This policy is one of the most thorough and competitive available. It covers players, owners, collectors, schools, trusts, museums, and any group with musical instruments. Premiums begin at $200 per year with no hidden fees. You can choose a policy with no deductible or a deductible of $250 or more. Coverage can be issued within minutes after we receive your application.

The policy covers risks of direct physical loss and musical instruments worldwide. This includes but is not limited to, the following kinds of losses:

• Change in Temperature and Humidity

• Breakage and Repair including resultant loss of value

• Theft

• Fire

• Water Damage and Flood

• Windstorm, Tornado and Hail

• Earthquake

• Collision

• Vandalism

• Shipment

• Air Cargo (Baggage Check)

• Entrustment and consignment

• Dishonesty of Entrustment and consignment

• Faulty Workmanship during the repair process

And many other perils not mentioned…

What's not covered by the policy?

• Governmental confiscation or seizure

• War and Insurrection

• Nuclear Perils

• Gradual deterioration

• Wet and dry rot, Rust corrosion, or mold

• Insects, worms, vermin or rodents

• Illegal Trade and Transportation

• Latent Defect or inherent vice

• Consequential loss (Other than devaluation after repair)

Appraisals & Valuations

Your covered instruments and equipment will be valued at either the Agreed Value, Actual Cash Value, or Replacement Cost. Here's how these [3] valuation methods work:

Agreed Value

When we accept the appraisal for an instrument and/or equipment, these items will be covered under the Agreed Value Clause. The advantage of this type of valuation is that when a covered loss occurs the insurance company will not question the value of your instrument after a loss, so you are guaranteed to receive the full amount of its listed value.

Because you and the insurer agreed on the instrument's value when your policy was written (i.e., before the loss), the Agreed Value Clause enables the insurance company to pay for your loss quickly…and it ensures that you will be paid the agreed-upon amount.

Actual Cash Value

This is the more common method of valuation. If it's not practical to obtain appraisals at the time of your policy issuance, your instruments and equipment will be insured under the Actual Cash Value Clause. Instead of an appraisal, you declare the value of each item to Heritage Insurance Services, Inc. This represents the market value of your items to the best of your knowledge and the amount(s) you're willing to accept in the event of a loss. The insurer then accepts these values on the condition that they're within a reasonable market range.

When a loss occurs, the insurance company will either ask you to justify your declared values, or it will make the valuation directly.

Replacement Cost Valuation

When the cost to replace an instrument or related musical equipment exceeds the actual cash value (fair market value) Replacement Cost may be beneficial. Some instruments and equipment physically depreciate over time. Replacement Cost is used when you prefer to be paid based on the cost to replace with new or contemporary items. As an example, say a piano has an actual cash value (fair market value) of $52,000, but is sold new by the manufacturer today for $76,000. If you are insured for $76,000 under a replacement cost valuation, the insurer would pay based on the cost to replace with a new piano rather than the actual cash value of the older piano.

When an instrument appreciates or retains its value over time, replacement cost and actual cash value are the same.

The Difference[s] in a Nutshell:

• The Agreed Value Clause establishes the values of your items before a loss occurs.

• The Actual Cash Value Cause requires verification of values after the loss occurs.

• The Replacement Cost clause pays based on the cost to replace with a new or contemporary item or the same kind and quality.

What These Differences Mean To You:

• Instruments valued under the Agreed Cash Value Clause are always paid based upon the insured amount.

• Instruments valued under the Actual Cash Value Clause are almost always paid at the insured amount. (Take a digital picture of your instrument if you go this route.)

• As long as the insured value is within a reasonable market price range, the Agreed Value and Actual Cash Value methods usually arrive at the same place, BUT you'll get there faster under the Agreed Cash Value Clause.

• Replacement cost is based on the cost to replace with a new or contemporary item of the same kind and quality.

Appraisal generally involves an independent evaluation of your instrument's value, either before or after a loss occurs, by someone other than you or the insurance company.