Rising value of instruments could mean increasing insurance cover
December 6, 2009 by admin
Filed under News, News-Insurance
Many consumers that have valuable musical instruments take out insurance cover to ensure that should something happen to the instrument, such as damage or theft, they will not have to foot the bill to get it repaired or replaced. However, a recent report has suggested that some instrument owners may need to look at their insurance cover to make sure that it is adequate because the value of instruments has soared during the recession.
A music industry specialist, Noel Sheehan, said that the value of musical instruments had increased by at least 20 percent and in some cases by as much as 50 percent.
This is due to a number of factors, including the rising value of raw materials such as wood and gold. The falling value of sterling has also affected the value of instruments that have been imported. Sheehan said that the value of a saxophone from Japan that cost £1300 two years ago would now cost £1900, and a clarinet from France that cost £1200 two years ago would now cost £1800.
A spokesperson from the specialist insurance firm, Musicguard, said that the average claim had also been increasing, and had soared from £629 two years ago to £967. He said that whilst musical instruments were often covered under household insurance up to a certain value some people that had not updated their policies for some time could find that they were not adequately insured.
They could also find that the value of the instrument has now increased to the point where additional cover may be needed.
One drummer explained how he had failed to update the valuations of his musical instruments, which were then stolen, leaving him out of pocket. He said: ‘All the instruments were itemised under the policy.
Everything was replaced within a month. Although the replacement cost was higher than what I had paid for the instruments, I only got cover for the original valuation so I was out of pocket. Once I had replaced everything I made sure I did a new itemised valuation for the policy.’
