Does it make sense to insure guitar for full value?

[Rosewood99]

Just thinking out loud, I'm sure there is a flaw in my logic. The chances of a guitar be totally destroyed (or permanently lost) have to be one in a zillion. Wouldn't it make more sense to insure it for what a typical repair costs?

I'm mainly talking about more expensive guitars. So if I ship a guitar that costs $5,000, if insured it for say, $1,500, wouldn't that take care of 99.99% of repairs and would probably leave me with a little more.

Bracing for the all the reasons why this is a bad idea.


Note: As a seller shipping to someone; not as a permanent insure.

[brencat]

Not sure if you're referring to if you have a Heritage policy, do you insure for "Agreed Value" or "Replacement Value" ?

I personally do "Agreed Value." If the instrument is a total loss, that's their max out of pocket to me. All of my instruments were purchased used, so I don't see the point in insuring for full replacement when 1) a total loss is very unlikely, and 2) most can be replaced on the used market with minimal hassle.

One of a kind instruments is another matter entirely.

[foxo]

Theft would be my concern in this instance.

[jaymarsch]

It totally depends on what you are doing with your guitars. Flying with them on a regular basis? Driving with them to gigs/workshops/festivals on a regular basis? Are you the kind of guitar owner who enjoys buying and selling guitars so are shipping them on a regular basis?

I have owned anywhere from one to nine guitars over the past 18 years. I started insuring my guitars through Heritage when, I owned my first custom guitar and I was travelling to guitar workshops both by ground and air, shipping some guitars places for a variety of reasons. I have had one guitar crunched in shipping and both the repair and the drop in overall value of the guitar due to it now being a repaired guitar as opposed to just a used guitar, was fully covered.

If you sit at home and play your guitars then your homeowner's/renter's insurance may be perfectly fine to cover any costs related to theft, fire or other damage from casual use. I do have a guitar playing friend who was playing his guitar with a strap sitting down, he got up and the strap got caught on the chair, the guitar fell to the tiled floor and it was cracked open all the way around. He had musical instrument insurance which was good because it was a costly repair. But, the guitar played like new again after a highly respected repair person got their hands on it.

So, like many things related to guitar - it depends.

Best,
Jayne

[Rosewood99]

I should have been clearer in my post. I was meaning as a seller shipping to someone. Not as a permanent insure. For example, I shipped a guitar that had a replacement value of 4K which I insured for 4K. But maybe I should have just insured it for $1,500 which would have covered 99% of any repairs that might happen during shipping.

[Rosewood99]

Originally Posted by brencat

Not sure if you're referring to if you have a Heritage policy, do you insure for "Agreed Value" or "Replacement Value" ?

I personally do "Agreed Value." If the instrument is a total loss, that's their max out of pocket to me. All of my instruments were purchased used, so I don't see the point in insuring for full replacement when 1) a total loss is very unlikely, and 2) most can be replaced on the used market with minimal hassle.

One of a kind instruments is another matter entirely.

But you could have just insured it for "repair cost", with the idea of covering what would be the worst that could happen if packed and shipped in a box. Just wondering what are the most common damages from shipping. I suppose a forklift could totally destroy a guitars but other than that I would think most repairs could be covered with less than replacement value.

[dnf777]

Good question. Although, I would disagree with your probability of a total loss. Theft is a 100% loss of value. A crush injury can “total” an acoustic.

Also, even adopting your logic, you should not only insure to cover repair costs, but also the anticipated loss of value, now that it is no longer in the same category as before the repair. (Like new…mint…etc…)

[Rosewood99]

Originally Posted by dnf777

Good question. Although, I would disagree with your probability of a total loss. Theft is a 100% loss of value. A crush injury can “total” an acoustic.

Also, even adopting your logic, you should not only insure to cover repair costs, but also the anticipated loss of value, now that it is no longer in the same category as before the repair. (Like new…mint…etc…)

Good points. But how many of us on this forum who have bought and sold guitars have had a theft or a total loss of a guitar shipped? I would be able to take that chance but I understand that others might not.

[Dogma]

Are you talking about insurance purchased through shipping company (FedEx or whomever) or through a company like Heritage?

If I was shipping a $4K guitar I don't think I'd want to rely on the shipping company to cough up for damage coverage - from what I have read here anyway. I just covered my two guitars with Heritage and their minimum annual premium is $250 which (remembering here) covers up to $35,000 total for all instruments. Anything I add to the policy whose value doesn't push the combined over that number is fully covered. Of course, I can pay a higher premium to cover the collection should it ever exceed the $35K in replacement value. One of my guitars is currently lost by FedEx so who knows, I may learn more than I wish about this insurance. I hope not, but I'm glad I am not relying on FedEx for that aspect of the transaction as well...

[Pura Vida]

This is two good thread in one! I just recently added a Heritage account, and I am covering all of my guitars for full value, in case something catastrophic happens, or in case one gets damaged/lost/stolen, while traveling or shipping to a buyer.

As for temporary coverage, I place no faith in any carrier's insurance coverage, as there is a good chance they will deny the claim, suggest insufficient packaging, or find some other loophole. I've also read here that UPS Stores have more limited coverage than shipping UPS directly. This is one reason I went with the Heritage policy (in case I ever decide to sell non-locally).

[Rosewood99]

Originally Posted by Pura Vida

This is two good thread in one! I just recently added a Heritage account, and I am covering all of my guitars for full value, in case something catastrophic happens, or in case one gets damaged/lost/stolen, while traveling or shipping to a buyer.

As for temporary coverage, I place no faith in any carrier's insurance coverage, as there is a good chance they will deny the claim, suggest insufficient packaging, or find some other loophole. I've also read here that UPS Stores have more limited coverage than shipping UPS directly. This is one reason I went with the Heritage policy (in case I ever decide to sell non-locally).

Heritage is good for protection from theft, fire, etc but my post is specifically for those of us that aren't using long-term insurance. I'm strictly talking about insurance when you sell a guitar and have to ship it.

My point is you probably don't need to tell UPS of fedex (this isn't about whether they will dispute the claim, for the sake of argument, let's say they will) but rather if it makes sense to just pay for amount that would cover 99% of potential repairs, rather than replacement of the guitar. The logic being the chances of a complete totaling of the guitar are practically nil.

[Howard Emerson]

Originally Posted by Rosewood99

Heritage is good for protection from theft, fire, etc but my post is specifically for those of us that aren't using long-term insurance. I'm strictly talking about insurance when you sell a guitar and have to ship it.

My point is you probably don't need to tell UPS of fedex (this isn't about whether they will dispute the claim, for the sake of argument, let's say they will) but rather if it makes sense to just pay for amount that would cover 99% of potential repairs, rather than replacement of the guitar. The logic being the chances of a complete totaling of the guitar are practically nil.

Heritage is so inexpensive it makes no sense not to have it.

If you're driving in the car and get rear ended, smashing guitars as result, or walking up a stairway and the handle breaks, allowing the guitar to fly down the steps to a crash landing, etc, etc.

Heritage policies cover all that stuff. I think my policy runs $250 a year, and I've got a Monteleone, a 1930 Gibson L-5, a Flammang L-40, a Flammang L-40 12 string, a 1910 Salvador Ibanez, etc.

Stuff happens, and UPS, Fedex, USPS don't care a bit.

I don't feel unlucky, but I don't want to give it a second thought no matter what I'm doing.

Best regards,
Howard Emerson

[Goat Mick]

I see where your logic is coming from but I think it may be a little misguided. So I sell you a really nice guitar for $4k and the shipping company damages it. It’s going to cost $1500 to repair it so cool I’ve got the insurance money to pay for the repair. Now are you still want to pay $4k for that busted and repaired guitar? With that much damage and even with the best quality repair imaginable it’s probably a $2k guitar at this point. Who’s going to cover the $2k in value you just lost?

[mawmow]

I never had a guitar (bought or sold) damaged through shipping.
My main concern would be a lost/stolen package :
So, I always insured for the price I sold the item.

[Rosewood99]

Originally Posted by Goat Mick

I see where your logic is coming from but I think it may be a little misguided. So I sell you a really nice guitar for $4k and the shipping company damages it. It’s going to cost $1500 to repair it so cool I’ve got the insurance money to pay for the repair. Now are you still want to pay $4k for that busted and repaired guitar? With that much damage and even with the best quality repair imaginable it’s probably a $2k guitar at this point. Who’s going to cover the $2k in value you just lost?

Good points. However, when I sell a guitar, my terms are if it's damaged I will either pay for the repair (if that's what you want) or you return it and I will repair it and keep it. I don't renegotiate the price.

But I'm wondering how busted it up it can be if it's in a case and packed well. Run over by a forklift, maybe? How many times has that happened ever? I guess I'm just betting the odds are in my favor. But I understand that many will feel differently.