Insurance valuations

I seem to remember there is an insurance expert on the Forum somewhere who can no doubt add to this, but in the meantime, what you are trying to do is get the total value you are insuring about right - so guess, but err on the high side.

The reason for this is that in the event of a claim, if the insurers think the total value you have insured for is less than it should be they will average it when you claim. In other words if you have £50k worth of cover for contents that should be worth £100k they will give you 50% for each item.

Your question will be relevant if you were to make a claim. It would then be for you to make your case to the insurers that the new piece of kit you want to buy is the one that most closely replaces the one that has been nicked.

At that point you would want to go to the insurers armed with letters from your dealer authoritatively telling you whch bit of new kit was the equivalent of the old ones.

Until then - guess.

quote:

Originally posted by jcs_smith:
I’m in the process of getting quotes for an insurance renewal and I’m a bit confused as to how I value my hi-fi. The problem is that some of my kit is no longer available. So under a new for old agreement what are the replacements?
Is the replacement for a 102 a 112x, 122 or a 202, and since they don’t have on-board phono stages can I claim for a Stageline as well?
Is a Dynavector 17RD3 a direct replacement for a 17RD2?
Is the replacement for a CD5 a CD5i or a CD5x?
What about 135’s? Are they replaced by a 300, because a single 250.2 doesn’t seem right to me and twin 250.2’s would be a bit pointless? Also would a 112x/hi-cap/300 or 202/hi-cap/300 sound any good or would it be over-balanced?
And SBL’s, are they replaced by SL2’s?

I am no expert but apart from the kit I use I have a collection of old equipment and records worth a few bob. Getting it insured was a long job

The best way is (if your policy is new for old)

Go to a well established hi fi dealer with a list of your equipment with serial numbers and get him to write a letter something like this


title "Valuation and replacment costs"

ie Naim pre amplifier model number **** serial number ****** cost new £++++

replacement model is now Naim pre amplifier model 122 ect ect

by setting it out like that, if the sad day ever happened you will have no problems

I also do it for my records which are worth £50 each or more (early stuff)

for that I get a valuation of each expensive record and then a ball park figure for all the others and cds
900 average cds can cost over 6k to replace

the hi fi costs me nothing for the valuation

records and cds done every two years £30 because its a big job

jcs - the replacement for a 102 is obviously a 202. a stageline is the only proper replacement for the internal phono boards.

the replacement for a CD5 is a CD5x.

sbls are replaced by sl2s.

and in my opinion 2 135s are now a 300.

i'd also say you're right about the cart.

a 112x with a 300 does sound a bit unreasonable. in this case i'd go 202/250.2/hi or 282/250.2/hi.

regards, blackforest

It really shouldn't matter until you make a claim. Typically, a decent insurance policy will be for "replacement costs", if a unit is no longer made, then they should replace it with the unit that replaced the no longer produced unit.

i.e. I was broken into one time and lost my complete set up. I lost a pair of B&W MATRIX 805s, they were replaced with Nautilus 805s by the insurance company. A sonically different speaker and arguable there was a "lesser" B&W that was more comparable to the MATRIX, but the Nautilus was the "replacement" for the MATRIX... (in the end, I ended up with the SF Concertos)

Also, for me, it did not make one bit of difference that my coverage for my "contents" was only 75% of the full value of everything I had owned or would have cost to replace. That would only come into consideration if I have lost EVERYTHING and needed the policy limits.

Bottom line: It depends on what type of coverage you have. READ IT CAREFULLY

One more thing, as other have eluded to, document everything before it is too late!

Taking photos and saving receipts are the best ways to shorten the red tape line of settling your claim. Especially CDs. I had purchased 100s at used CD stores or clearing houses on the cheap, but my policy paid me full $17.99 plus tax per disc replacement costs….at that time I got to weed out all the CDs I no longer liked or listened to and put the cash into improving my gear…all perfectly legal.

As mentioned above, the first time I had my stuff stolen; it was a long difficult process in "proving" I had owned everything I said I did. After that, I documented everything! And the next time, it was no problem getting paid! And the 3rd time was pretty easy too!

Yes, believe it or not, I was broken into 3 times over a period of 1.5 years while I living in a cheap apartment building while I attend graduate school!

Funny, after each time my set up improved significantly

Unless you have agreed special single item insurance, even with 'new for old' an insurer will generally cover CDs and LPs by number owned, not 'rarity' or 'collections'. e.g. that rare pink label Witchseason Nick Drake 'Five Leaves Left' will just be covered as 'any old edition'...!

Regarding equipment, insurers will expect that you take out a realistic sum insured, but probably 'per category' (eg 'entertainment equipment') rather than individual itemisation; they will also expect reasonable evidence of ownership in the event of a claim.

As a modern policy is almost certain to provide indemnity (putting the insured into the same position as enjoyed prior to the loss) on a 'new for old' basis, then the sum insured you specify - for which you pay the appropriate premium - should be adequate to replace the item with the current equivilent, e.g. 282 for 82 and 250.2 for 250.

Obviously, what one couldn't expect is to buy a lovely 'top' olive system s/h and insure it at the s/h amount paid, and then in the event of a loss expect an insurer to stump up the equivilent new 'reference' system...

Yes, the problem comes with things like a Stageline instead of, say, the phonoboards in an 82. There probably wouldn't be any quibble about the Stageline itself, but rather with the p/s, which these days could, theoretically, range from I-Supply to SC2...!! In this case, I think 'uberrimae fidei' (utmost good faith) must apply!

James

I am a qualified insurance broker - but cannot promote my firm or 'tout' for business on this forum. Happy to answer any questions on PM though.

Regards

Lee

My wife is in insurance too and i recently asked her about our CD collection which does feature a few out of print albums, some autographed CD's etc.

Answer was it does not matter to them, we will only get paid the price of a standard CD, as Owen has detailed.

My Naim receipts are filed with the agency as proof. They also recommended walking around the house with a handycam to make a record of possessions should you make a claim later. Jewellery etc. has been photographed and weighed.

Regards,

Stan

Let us know which insurers you settle for/recommend.

Owen, you were very lucky to get 100% in a situation where you were only covered for 75% of the full value of your contents.
The 'averaging clause' applies to ALL claims, and not jut to total loss events. Beware!

quote:

Originally posted by David O'Higgins:
The 'averaging clause' applies to ALL claims, and not jut to total loss events.

In the UK certainly but perhaps not elsewhere in the world ? (Owen lives in California)

quote:

Originally posted by David O'Higgins:
Owen, you were very lucky to get 100% in a situation where you were only covered for 75% of the full value of your contents.
The 'averaging clause' applies to ALL claims, and not jut to total loss events. Beware!

I suspect that the insuring instruments are very different between the UK and over here...As I said, the only way the policy's limits could be triggered would be if my claim met or exceeded the policy limits. Otherwise, it defaulted to "replacment cost" coverage. I do think that I have very good insurance from a quality insurance company too, which helps a lot.

John