Have you heard that your instrument is insured under your homeowner's policy? Ever thought about letting your insurance agent know if you happen to rent a harp to a colleague, student or venue? AHS recently asked Peter Anderson of Anderson Insurance about these issues.

Homeowners Insurance vs. a Musical Instrument Policy

• Homeowner's policies generally only cover instruments up to $2,000, which is inadequate for most harps. Instrument insurance, on the other hand, will be based upon an "Agreed Value" established when you buy the policy. That avoids any later dispute as to the value of a claim if the instrument suffers a catastrophic loss.
   
• Homeowner's policies generally do not cover flood, ground water, earthquake damage, or even damage from falls and bumps! Yet one of the most common losses seen by Anderson is from harps accidentally falling or being knocked over.
   
• If you are using your harp professionally, it may be excluded as "business equipment" from your homeowner's coverage.
   
• Deductibles as low as $250 are available for harp insurance, while a homeowner's policy may feature a deductible of $1,000 or more.

Renting Harps = Extra Risk

Anderson Insurance has documented a significant pattern of much higher losses on rental instruments than on those in the owners' control.  The owner is personally more invested in their instrument, and a renter - particularly a student or venue - may be less experienced or familiar with harp care.  As a result, a policy with Anderson Insurance includes some requirements for full coverage on rental instruments.  It is simple and relatively inexpensive, but very important to protect your investment.  

A $25 rental endorsement will be added to your policy for each approved rental contract. 

Depending on the instrument rented, the experience of the renter, and the value of the instrument being rented there may be an additional premium to cover the actual rental instrument. For each rental, harp owners are asked to supply:

1. Name and address of your renter.
2. A copy of your agreement between you and your renter.
3. Year, Make, Model, Serial number and Itemized value for the instrument that is being rented.
4. Renter's musical background and experience level.
5. Extent that this instrument will be away from your renter's premises, along with your renters experience transporting this instrument.
6. If your rental instrument is left away from the renter's premises, describe how this instrument will be protected when it is not being played.

Anderson will limit your coverage to only $1,000 for any harp rented if these guidelines are not followed.  If you think these requirements may be overkill, consider this case: a harp was rented out of state, and ultimately stored in a damp, dirt-floor basement!   Would you want that to happen to your instrument?!  Answering these questions for yourself as well as for your insurance company will help educate your renter, minimize your risk and protect your investment.

Prevention

Insurance is always a product you can't do without but hope you never have to use. Accidents can happen to everyone, but always be vigilant about hazards. One catastrophic loss occurred when an instrument was stored in a venue behind "a door that is never supposed to be opened".  You can guess what happened - the heavy door was swung open and smashed the instrument badly. It is helpful to think ahead through all the "what if's" and try to guard against as many as possible. One resourceful California harpist is considering bolts in the ceiling and a hanging strap as a preventative to earthquake damage!  

Anderson Insurance provides a special discounted harp insurance program for American Harp Society, Inc. members. If you need coverage, please visit them at www.harpinsurance.com for a quote and more information.