Need help on Gear insurance

[DavidT]

Hello everyone! My home owners insurance is up for renewal in 9 days. Living in TX our home values have been rapidly increasing and I find my home has grown in value an additional $400K in the last 2 years. Combined with the economic times we live in my insurance premium increased $1,300 this year over last year and last year it went up over $500.

As I started working with my insurance broker I discussed a desire to have insurance on my camera gear. I asked for a replacement policy, one that would cover theft in and out of the home, damage from dropping etc. I collected the serial numbers and provided them a complete list of my gear valued at $64K. When doing an addition to my policy this has increased the price of my insurance by an additional $1K a year. This seems crazy high to insure my gear as this is a hobby not a profession.

My home has a 1% deductible for hail and storm damage which is hard to get now, most companies have increased to 2%. I currently have State Auto Insurance Company. They shopped it with Allstate, Farmers, Progressive, Travelers and State Auto had the best rate.

What are all of you doing? I would appreciate your thoughts.

David

 

[ButlerKid]

We have a Scheduled policy for our jewelry, video and camera gear. We set the value. If the items are reasonably available used, I insure them for the used value. If not, I insure it for the value to replace it new. I don't insure everything. Just the big ticket items. Note that if you make any money with your gear, some policies will not cover it as personal property. My husband is retired military/Vietnam vet so we use Armed Forces Insurance.

We use USAA for our home and vehicles. USAA is for military families.

Small perks for being shot at and servicing his country for 20 years..........

 

[Abinoone]

I don’t carry insurance on my camera gear, which has a retail value of about $30,000. The way I look at it, insurance is for situations where you can’t afford a replacement, or is required by law (e.g. liability or medical coverage). In my mind, it doesn’t make economic sense to pay ~$1,000 year to cover $30,000 in equipment. If I experience a loss, that’s my opportunity to upgrade my kit.

 

[DavidT]

I don’t carry insurance on my camera gear, which has a retail value of about $30,000. The way I look at it, insurance is for situations where you can’t afford a replacement, or is required by law (e.g. liability or medical coverage). In my mind, it doesn’t make economic sense to pay ~$1,000 year to cover $30,000 in equipment. If I experience a loss, that’s my opportunity to upgrade my kit.

What about $64k? If I experienced a loss of gear at that scale I couldn’t easily replace it. Insurance is worth it but don’t want to pay anymore than I have to. As much as I travel with my gear the risk factor is higher than if I didn’t. I’m traveling now and I’ve got $27k of the kit with me.

 

[Abinoone]

What about $64k? If I experienced a loss of gear at that scale I couldn’t easily replace it. Insurance is worth it but don’t want to pay anymore than I have to. As much as I travel with my gear the risk factor is higher than if I didn’t. I’m traveling now and I’ve got $27k of the kit with me.

Risk tolerance is always a personal choice. If you’re not comfortable with $64K in risk, then you should definitely get insurance! Here’s my rationale: like you, I typically don’t travel with all my gear, so my risk at any given time is maybe $15,000-$20,000. That’s a risk I can accept and afford. It’s unlikely that I’ll simultaneously lose my gear while traveling and my equipment at home. If my house were to burn down and I lost everything, then my homeowners policy would cover rebuilding and contents, and I’d simply use part of the settlement for camera equipment, since I own too much other “stuff” anyway, and wouldn’t replace it all.

 

[sh1209]

State Farm is by far the best I’ve researched and what
I’ve had for the last 10-12 years. I have an article policy thru them along with our vehicle and home policies. There’s zero deductible.

 

[lpphototx]

I use USAA as well and schedule my camera gear as described by ButlerKid My annual cost is about 1% of the insured value. This is for personal use; they are very clear commercial use is not covered by this policy.

 

[Viathelens]

I am with State Farm. I have a "rider" on my home insurance that covers camera gear. Right now it's only covering my main camera and my large lenses as that is what I'm currently using the most. I think it's between $300-$400 since I quit covering everything, which is about $30,000. I change it as needed. Zero deductible is nice when a sensor goes out or you drop a camera and lens and they both need repairing...I've had both happen.

 

[Ivan Rothman]

I joined NANPA and then was able to use their camera insurance by Chubb. I have been happy with the service, although fortunately I have yet to have needed to make a claim. The annual cost of the policy is about 2-3% of the stated cost of the equipment.

 

[ButlerKid]

In November I fell and damaged my 14-24! That repair was about $850. This year I needed to have the SWM replaced on my 600mm (which I was carrying when I fell! ). I
decided to NOT file a claim and simply pay for the repair myself. It was my fault and I didn't want our policy which covers my camera gear, Justin's video gear and our jewelry to increase across the board.

Now I'm trying to staying vertical when carrying heavy gear. Fingers crossed. I travel again in January.....

 

[Will Murphy]

Does anyone have experience with the Professional Photographers of America insurance provided with membership. Full membership is $323 per year and provides $15,000 gear insurance. I haven't done it, but was thinking about it.

 

[Maljo]

I gave up on camera insurance. Too expensive. I can afford to replace the essentials if lost or stolen.

 

[EricBowles]

Be sure you look at how much you are trying to insure. You aren't trying to create a windfall or replace used equipment with new equipment - you simply want to break even. That means you need to assess each piece of equipment and determine the replacement value - the amount it is really worth if you are buying the same item.

Most people have a spreadsheet with every item of photo gear that has material value. Included on that spreadsheet should be the serial number, condition, replacement value, and possibly the date purchased and store. Gear that cost you $50,000 might have a current market value of $20,000. Paying a premium based on $50,000 for $20,000 worth of equipment is very expensive.

Talk with your agent about insuring a lot of small items. Filters, camera bags, and other accessories add up, but you are rarely going to have a lot of value in a place where it is at risk. Certainly hurricanes and tornadoes are different, but in my case I'm usually leaving 90+% of my small items and accessories at home. They are not very attractive to a thief, so the cost of insurance may not be important. Many policies have coverage for miscellaneous items without a need for itemization or extra premiums.

Insurance cost is going to range from $1.25 per $100 of value on a homeowners policy to around $2.30 per $100 for professional use through Chubb or some similar group policy. Professional use policies normally have a deductible.

Normally policies cover all risks - theft from your home or car, but also drops, dunks, and losses of any type. Water damage, leaving something behind at a hotel or in the field, and other losses are covered. If you have it on your homeowners policy, you may risk cancellation due to excessive claims, so it's a good idea to file a claim only when needed. I don't file claims under $500 even if it is covered.

Be sure you understand the rules for adding equipment during the year. NANPA's Chubb policy only requires an annual update with any changes. New equipment or disposal of equipment during the year is covered with no change in premium to reduce administrative costs. In general, you have a limited amount of time to notify your agent of additional equipment (typically within 30 days) and there is an additional premium or credit involved.

There is a lot of added value or cost avoidance if your gear is insured. If you need to ship it for repair, you don't normally need to buy the expensive insurance or charges based on value - a potential savings of $100 or more. Knowing gear is insured also makes you a bit more willing to use it prudently around snow, ice, or water.

Insurance is not very expensive - just 1.2% to 2.5% of value each year. Sooner or later you will have a loss. A little insurance helps mitigate the financial impact.

 

[DavidT]

I joined NANPA and then was able to use their camera insurance by Chubb. I have been happy with the service, although fortunately I have yet to have needed to make a claim. The annual cost of the policy is about 2-3% of the stated cost of the equipment.

Does Chubb have a max they will cover?

 

[Ivan Rothman]

Does Chubb have a max they will cover?

I don’t know but I am insuring a significant amount of gear and I doubt you would have a problem with limits

 

[DavidT]

Be sure you look at how much you are trying to insure. You aren't trying to create a windfall or replace used equipment with new equipment - you simply want to break even. That means you need to assess each piece of equipment and determine the replacement value - the amount it is really worth if you are buying the same item.

Most people have a spreadsheet with every item of photo gear that has material value. Included on that spreadsheet should be the serial number, condition, replacement value, and possibly the date purchased and store. Gear that cost you $50,000 might have a current market value of $20,000. Paying a premium based on $50,000 for $20,000 worth of equipment is very expensive.

Talk with your agent about insuring a lot of small items. Filters, camera bags, and other accessories add up, but you are rarely going to have a lot of value in a place where it is at risk. Certainly hurricanes and tornadoes are different, but in my case I'm usually leaving 90+% of my small items and accessories at home. They are not very attractive to a thief, so the cost of insurance may not be important. Many policies have coverage for miscellaneous items without a need for itemization or extra premiums.

Insurance cost is going to range from $1.25 per $100 of value on a homeowners policy to around $2.30 per $100 for professional use through Chubb or some similar group policy. Professional use policies normally have a deductible.

Normally policies cover all risks - theft from your home or car, but also drops, dunks, and losses of any type. Water damage, leaving something behind at a hotel or in the field, and other losses are covered. If you have it on your homeowners policy, you may risk cancellation due to excessive claims, so it's a good idea to file a claim only when needed. I don't file claims under $500 even if it is covered.

Be sure you understand the rules for adding equipment during the year. NANPA's Chubb policy only requires an annual update with any changes. New equipment or disposal of equipment during the year is covered with no change in premium to reduce administrative costs. In general, you have a limited amount of time to notify your agent of additional equipment (typically within 30 days) and there is an additional premium or credit involved.

There is a lot of added value or cost avoidance if your gear is insured. If you need to ship it for repair, you don't normally need to buy the expensive insurance or charges based on value - a potential savings of $100 or more. Knowing gear is insured also makes you a bit more willing to use it prudently around snow, ice, or water.

Insurance is not very expensive - just 1.2% to 2.5% of value each year. Sooner or later you will have a loss. A little insurance helps mitigate the financial impact.

All my gear is less than 1.5 years old and the majority would fall into 1 year as I did a full system switch. Everything I have is the newest and greatest in the Sony eco system. I noticed when doing my spreadsheet a lot of items have gone up in price to replace.

 

[RichF]

I have a rider of State Farm. No deductible- every item is scheduled, all risk coverage. Cost
round $1.25/$100 coverge

 

[DavidT]

I have a rider of State Farm. No deductible- every item is scheduled, all risk coverage. Cost
round $1.25/$100 coverge

That’s close to what my agent did. At $1.25 that’s $800 a year and I was quoted $1k. I guess they aren’t as far off as I expected but I’ll call State Farm. They seem to be a common company folks on here are using.

 

[Replytoken]

Years ago I talked about covering my gear on a rider or separate policy with my agent. In the course of the conversation I discovered a couple of things. First, a claim made for a loss goes against my policy. I would hate to have a rate hike or lose coverage for a minor loss (realizing that the OP may not have a minor loss but will still have a claim on file) as I have a clean record and my premiums reflect that. It was suggested that I consider a policy from a different company for my gear and I looked at State Farm. At the time, they had reasonable rates. And, if I filed a claim, it would not impact my home and auto insurance directly, but like any claim goes tot he insurance bureau where claims are reported. The latter approach seemed more reasonable to me as I do not use my gear professionally. I would check with an agent to see what would happen to my policies if a claim was filed. Things may have changed since then.

Good luck,

--Ken

 

[Gayle]

I have a personal articles policy with State Farm. I have about $10 worth of gear, and it's costing me $240/yr. No deductible, and rates don't go up if you have a loss. When I did the math, it will take me 41 years for my insurance to cost the amount of my gear.

 

[bjanes]

Hello everyone! My home owners insurance is up for renewal in 9 days. Living in TX our home values have been rapidly increasing and I find my home has grown in value an additional $400K in the last 2 years. Combined with the economic times we live in my insurance premium increased $1,300 this year over last year and last year it went up over $500.

As I started working with my insurance broker I discussed a desire to have insurance on my camera gear. I asked for a replacement policy, one that would cover theft in and out of the home, damage from dropping etc. I collected the serial numbers and provided them a complete list of my gear valued at $64K. When doing an addition to my policy this has increased the price of my insurance by an additional $1K a year. This seems crazy high to insure my gear as this is a hobby not a profession.

My home has a 1% deductible for hail and storm damage which is hard to get now, most companies have increased to 2%. I currently have State Auto Insurance Company. They shopped it with Allstate, Farmers, Progressive, Travelers and State Auto had the best rate.

What are all of you doing? I would appreciate your thoughts.

David

If you have military connections, USAA ia a no brainer. I have used them for many years and they covered a major loss when my D800e with attached 80-400 mm vr2 impacted with concrete. With the rising crime rate in the Chicago area, I am more comfortable to venture out with my expensive gear with insurance coverage.

Bill

 

[dupcak]

[Hope this isn't hijacking the thread - let me know if it is]

I've been following this thread closely as it has come time for me to change car/home insurance companies (previous company was bought out and new company stinks). Does anyone have any experience with insurance for personal and business equipment? I've got some equipment that I use for both purposes, but then about 60% of the cost is equipment that I only use for personal. Any thoughts on insuring it all under a business policy vs splitting it up into two policies?

 

[EricBowles]

[Hope this isn't hijacking the thread - let me know if it is]

I've been following this thread closely as it has come time for me to change car/home insurance companies (previous company was bought out and new company stinks). Does anyone have any experience with insurance for personal and business equipment? I've got some equipment that I use for both purposes, but then about 60% of the cost is equipment that I only use for personal. Any thoughts on insuring it all under a business policy vs splitting it up into two policies?

Assuming you are talking about photography equipment, it's generally all one or the other. If you photograph professionally, all your gear would be under that policy. It will depend on the company and specific policy you have. Some insurers have a record of denying claims based on the person - not the use.

 

[MikeInMI]

I have a rider on my AAA Homeowner's insurance policy. Scheduled equipment is $18,560 and premium is $154, which is 0.8%. It is an "all perils" policy but reimburses based on depreciated value. I guess if something happens, we'll debate the depreciation.

 

[SMB]

I have been a member of NANPA for over ten years and have had their insurance product through Chubb during that time. The best part is that I have dealt with the same person the entire time and she is terrific.
I have insured all my camera gear, underwater gear (housings/ports etc.) and computers. Over that time I have made 3 or 4 claims and their response has been hassle free. If I add a new piece to my kit I email the addition and have coverage from the time of my email, even if I don't get a direct response for a day or two.