Studio insurance

[disjunction]

Hi All
I've noticed that my project studio is beginning to look expensive now that i am once again growing out of the box. Can anyone suggest a good studio insurance vendor? I have some specific gear that i would hate to have to replace and it's all stuff that home contents insurance won't even get close to.

I'd specifically like to insure my Monitors, DAC, ADC, Lunchbox, computer, audio interface and a couple of synths.
Most of it stays in the studio except for the computer and Audio interface.

Cheers

Luke.

[SYOS]

Hi Luke, I recently moved Christchurch and my new contents policy covers all my gear as its for private use, all they asked was that I keep a detailed record of everything: Photos, Serial numbers, receipts etc. I specifically had them look at whether I needed to specify any of it in the policy and there was no need as it was for private only.

[Manning]

Luke - as long as you do not earn an income from your studio equipment, then it is absolutely coverable by any home and contents insurance. This has been tested repeatedly under law.

Insurance companies have tried (and failed) to have all sorts of other fancy gear disallowed under the argument that certain equipment is "intended only for use by professionals". However this tactic has failed in court. You need only demonstrate that your equipment is only for personal purposes - the original target market of the equipment is irrelevant. (An electron microscope has been adjudged as a "personal possession" under home contents insurance.)

The only items that have been successfully deemed as non-coverable by home and contents insurance are motorised vehicles (such as unregisterable kit cars and race vehicles). The insurance status of these things is still murky, so you'd need to get specialty insurance for those things. But studio gear is absolutely covered, and don't let your insurer try to BS you. (In the event of a claim, they will certainly investigate as to whether you have ever earned any income, and will not pay if they can prove this is the case).

[disjunction]

Hi Dan
Thanks for the response. My understanding is that there are limits on claim amounts for any specific category of items. For example there may be a limit of say $3000 on general hi-fi equipment. That wouldn't even cover my Monitors in this case (maybe one). What i would need to do is to list those items specifically and have them added to the policy. perhaps that's what you mean?

Thanks
Luke.

[disjunction]

Hi Manning
Thanks for the reply also. I think i'll call and ask some questions. to ensure that my gear is actually fully covered.

[Manning]

Dan, the "notional limits" for each insurer are explained in their product disclosure statements, however you are free to request "increased cover" in every category, and the insurer is required by law to provide you a quote.

While this will (obviously) increase the cost of the insurance premium, it will still be drastically cheaper than commercial studio insurance (which typically charges a fixed percentage of the total value).

[SYOS]

Hmmmm, thought I had this one sorted but now I'm questioning it, will have to call and double check, thanks for the heads up guys, I know they are just another business but I find it so hard to get ALL the facts out of insurers, them and phone companies

[Manning]

LOL Insurance companies have two objectives: 1) to get your money and 2) to not give it back.

Anyway, the critical factor here is "unspecified items" - insurers are allowed to pay limited amounts on things which are not specified in your policy.

The flipside is that they ARE required to pay the full replacement value on things which ARE specified.

Make sure that you provide the insurer with a photograph and serial number for each item. In the case of a claim (particularly one with a 'new for old' replacement policy), this stuff is critical. It will also speed up the claim, insurers love to fight but they also know when to just give up and pay the cash.

All studio owners should be familiar with the Financial Ombudsman Service (http://www.accc.gov.au/content/index.ph ... chType/org). They are your friend, and insurers tend to get a real move on when the FOS are involved.

[disjunction]

Great info. Thanks Manning.

[Hookemeister]

Hi Luke

If you ever decide to run that project studio as a business then you might want to think about Public Liability Insurance.

That will cover you in case somebody trips over a mic stand, breaks an arm and decides to sue you for damages and loss of income.