Insuring a musical instrument is not complex, but there are some important issues to be aware of to ensure that it is properly covered.

There are a number of specialist insurance policies available, and these provide an inexpensive way to cover a musical instrument. While they are straightforward products Ð certainly less complex than an average household policy - it is worth noting a few points about what these policies do and do not cover and how they operate.

But before even looking at the specialist policies, the first question that needs to be addressed is whether a standard household policy is suitable to cover a musical instrument.

If one reads the small print of a home policy, there is usually a section which covers personal possessions away from the home. It is easy to think that this section would provide adequate cover, but this is unlikely to be the case.

Mark Prendergast of Musicians Insurance Services, a specialist broker based in Middlesex, warns against relying on a household policy. "The personal possessions extension is suitable for things such as jewellery and clothes that are away from the home. But the cover is limited for musical instruments."

Most importantly, says Prendergast, the home insurance policies will not cover a person who uses the instrument for professional or semi-professional use. "The insurer will not cover a person who plays in a pub for money, even if that person is not a professional, because it is deemed to be a business use."

Professional musicians will therefore need to look to a specialist policy if they wish to cover their instruments.

A number of brokers offer musical instrument insurance, through schemes that they have arranged with one or more insurance companies. Insurer Allianz Cornhill Musical Insurance also has a policy that it sells straight to consumers as well as through brokers.

On the face of it musical instrument policies are very similar. But there are small and important differences between them. Many policies also offer a degree of flexibility in terms of the cover provided.

It is therefore important to understand the policies so that you select a policy that meets your needs. This is particularly important if you are purchasing over the internet, where the amount of personal advice may be limited.

A good broker should be able to advise you, but an appreciation of the issues will help you ask the right questions and understand the policy documents when they arrive.

It is also worth shopping around and getting a number of quotes to compare. Brokers will have different deals with their insurers and so premiums will vary. But be aware: a cheap quote does not mean a good quote. Always ensure that the cover meets you needs.

WHAT TO LOOK FOR

Premiums for orchestral instruments reflect the type of instrument as well as the value. A £3,000 flute can be insured for around £40 a year, a £15,000 violin or cello could be insured for under £100.

Higher value instruments Ð those at over £100,000 Ð will attract premiums of over £400 in the case of violins, violas and cellos, and over £700 for double basses."

Insurers will generally have a minimum premium in the region of £30.

What is covered?

The cover is often given on a world-wide basis so the instrument is covered anywhere in the world, although some policies are restricted to the UK and EU. If you are likely to be taking the instrument abroad then check.

Policies may also provide cover if the value of the instrument is adversely affected by a repair (known as 'diminution of value'). Additionally, the cost of hiring equipment whilst the insured instrument is under repair or awaiting replacement may be covered.

What isn't covered?

Theft from a vehicle is another area that can cause problems. These thefts are often excluded, but it may be possible to include it if an additional premium is paid. This could be £30 or more.

Where vehicle theft is included there will generally be a requirement that the vehicle is locked, that the windows are shut and that any security devices are activated.

HIGH VALUE INSTRUMENTS

Other exclusions to note include damage caused by wear and tear and damage caused by moths, vermin and woodworm.

Is there an excess?

There is often the option to take a higher excess Ð perhaps £200 or £500. Taking a higher voluntary excess will lead to a reduction in premium. But you need to bear in mind whether it is worth it. The saving may only be £20. And could you afford the higher sum if a claim were made?

How much should the instrument be insured for?

Depending on the value of the instrument, insurers may require a valuation and possibly photographic evidence. Sandra O'Brien of broker Victor C Knight says: "If the instrument is worth over £2,000 we advise getting valuations. And always keep the purchase receipts no matter how much the instrument is worth."

The receipt may be needed as proof of ownership and of value if a separate valuation is not required. You should check with your broker or insurer as to their specific requirements.

Will my instrument policy include personal accident and public liability insurance?

Typically, instrument policies will not include either. This is because the policy covers the instrument rather than the owner. There are exceptions. Musicguard's policy, for instance, includes both PA and PL cover.

But if you want PA or PL cover and it is not included in the instrument cover, a broker should be able to arrange separate policies. It is worth noting that orchestras will generally provide PL cover for their members, and Musicians' Union also provides PL cover as part of its membership benefits.

If my instrument is stolen, what assistance will I get to recover it?

Allianz Cornhill Musical Insurance, for instance, has a team of specialist claims investigators, which it uses to track down stolen instruments.

Broker Lark Insurance also provides help to their clients. Claire Cromwell of Lark Insurance says "If a theft occurs, we notify dealers, others in the trade and the police. We are in contact with a network of dealers who talk to each other. If necessary we go to flea markets in search of the instrument."

A SUCCESSFUL RECOVERY

A spokeswoman says: "The violin turned up in Honduras 12 months after being stolen at LA airport. A man was offering to sell it to a member of a local orchestra who suspected that it was stolen and telephoned a friend in the UK to check.

"Following some deft detective work and a carefully coordinated plan involving loss adjusters in the UK and USA, the LA Police Department, the British Consulate, Brinks Mat, and a good samaritan in Honduras, we reunited the instrument with its delighted UK owner. Curiously, one of the key people in its recovery did not want any money as a reward. Instead, he asked for some English teabags, treacle tarts and a bottle of Tio Pepe sherry!"

Michael Faulkner (Insurance Times)

this article is copyright protected. Morgensterns is licensed to reproduce it. No further copying is permitted without Morgensterns or the author's permission

CONTACT DETAILS