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The musical Equipment and Instruments under this policy are covered under an Inland Marine coverage form. Meaning, the coverage is included while in your studio/office/home for storage, while in transit* to and from your gigs, and while being used away from your premises anywhere in the world**

Note that there is no coverage for property while rented, leased or loaned to others;

* The policy contains a Theft from an unattended/ unlocked Vehicle exclusion that reads as follows:

We will not cover loss by theft or pilferage that occurs while covered property is left on or in an unlocked and unattended container, compartment, vehicle or trailer. We will cover theft of property from a locked container, compartment, vehicle or trailer when there are visible signs of forced entry. This exclusion will not apply while covered property is in the care or custody of a common carrier.

** Coverage is included anywhere in the world with the exception of any country or jurisdiction which is subject to trade or other economic sanction or embargo by the governments of Canada or the United States of America.

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This is the cost of repairing or replacing the damaged property without deduction for depreciation. Replacement cost will pay for the smallest of the following:

1. The amount you actually spend in repairing the damage, 2. The amount it would cost to replace the lost or damaged property at the time of the loss with new property of similar kind and quality to be used for the same purpose. 3. The limit of coverage that applies to the property. Payment will be made once the property has actually been replaced.

The Equipment deductible is $250 per claim. This applies to any one incident, not per item.

Below is a breakdown of how Instruments & Equipment are valued under the Front Row Music Instrument program:

• Replacement Cost, except if agreed value is requested.  The cost of repairing or replacing the damaged property without deduction for depreciation.  Replacement cost will pay for the smallest of the following: 1. The amount you actually spend in repairing the damage, 2. The amount it would cost to replace the lost or damaged property at the time of the loss with new property of similar kind and quality to be used for the same purpose. 3. The limit of coverage that applies to the property.    Payment will be made once the property has actually been replaced. Because replacement costs can vary, we recommend that you round up the value you choose for your equipment limit (e.g. if you estimate the replacement cost of all your gear as $12,756 CAD, select $13,000 as your equipment limit). Please note that mid-term changes to your policy limits are subject to a $25 change fee. If you know that you will be acquiring new equipment during your policy term, you may wish to include the value of this equipment in your limit total. Generally, the equipment limit represents the maximum amount that the insurance company will pay for any one claim. It limits the amount that you could receive from a paid claim. It should be adequate to cover the replacement costs of every item insured under the policy.
• Agreed Value: If agreed value is requested, a current appraisal less than 5 years old must be provided. To maintain agreed value an updated appraisal must be provided every 5 years

**If you want to insure antique, rare or one of a kind instruments, we recommend that you contact our office to arrange a quote for these items to be insured on an agreed value basis.  As an owner of these unique items you may not be satisfied with a new equipment or instrument of comparable material and quality replacing your antique, rare or one of kind instrument. 

For example if you own a vintage Les Paul guitar that is appraised at $25,000 and you do not request that your instrument be valued based on agreed value,  the policy would only provide you with a new Les Paul guitar of comparable material and quality used for the same purpose in the event of an insured loss.  In order to make sure that you could replace your vintage guitar with another vintage guitar of same value as your original appraised guitar, you need to contact our office to arrange a custom quote and provide a copy of an appraisal that is less than 5 years old.  

If you have any questions regarding how your equipment and instruments will be valued, please contact our office. 

We do not require a schedule of instruments/equipment to be on file to bind coverage under the program. It would be the insured's responsibility to maintain proof of ownership for your records. In the event of a claim, the claims adjuster would require the proof of ownership.

For vintage instruments: If you’ve had them appraised, then we need the appraisals.

A clause in an insurance policy requiring an insured to carry a certain percentage (usually 80, 90 or 100%) of insurance in relation to the value of the property insured. The insured shares in losses to the extent that he is underinsured at the time of loss.  Under the terms of this clause, property must be insured in an amount equal to or exceeding 90% of its insurable value. Failure to do so will result in a penalty in the event of a loss. The manner in which the 90% co-insurance clause would operate is illustrated in the following hypothetical example.  

Example:

A) Owned Instruments/Equipment is insured on a replacement cost basis for $60,000.

B) Actual cost to replace the Owned Instruments/Equipment is $100,000.

C) Minimum amount of insurance required to satisfy the 90% co-insurance clause is $90,000. (90% of B)

D) Amount of loss $50,000.  

Application of co-insurance clause:  

FORMULA:

Amount of insurance carried   X  Amount of loss / Amount of insurance required    =  Recovery

$60,000. (A)  X  $50,000 (D) / $90,000. (C)  = $33,333.33

This example clearly illustrates the necessity of insurance to value. Note the amount of recovery never exceeds the amount of insurance carried. For this reason it is important to insure for 100% of the insurable value in order to have enough coverage in the event of a total loss.