Insurance on Equipment?

[JKeena]

What does everybody use for insurance on their equipment? I think my equipment that I carry in my bag with me worth a little under 2 grand if that indicates around what I might be paying monthly... I am soon to graduate college and need to insure everything against theft, dropping, breaking, and the occasional biker or skateboard hitting it. Any suggestions would be great! -Justin

[Trevor Ash]

Call your regular insurance agent and ask them what they have. Myself, I have a personal articles policy with State Farm that covers my equipment. It's very affordable assuming you're not using your equipment to make money. You might be surprised to learn how cheap it is. It covers theft, accidental damage, pretty much everything but normal wear and tear.

[mjs1973]

Here is a thread on the same subject that I posted not too long ago. I have talked to 2 insurance companies about this since I posted it. Of the 2, State Farm was the cheapest. I didn't get an exact price but my agent said that it comes out pretty close to $10 per $1000. So if you have $2000 worth of gear, it will cost you around $20/year. A bargin at twict the price if you ask me.

Michael

[JKeena]

Wow, that's sounding wicked cheap for peace of mind! I'll talk to my insuance agency. Thanks for the tips!

[EmbeddedMatt]

I think it's worth noting that the insurance companies expect to make a profit with their policies. They are not insuring you as a favor. If you have a rider on some other insurance policy and you file a claim, you will likely not be renewed. Insurance companies weed out people who file claims. Also, you will need replacement value coverage or you will be sorely disappointed with your settlement.

Do you have decent limits on your auto liabilty policy, say $300,000? Do you have a disability policy? No? Then why in the world would you insure against a $2000 (maximum) loss.

[92135011]

I say it depends on what you are using the camera for.
If its stolen at your house, you can claim the house insurance at least you can here in Canada. There is not a very high chance you will get it stolen elsewhere unless someone yanks it out of your hand or something. I would expect also that your camera will not take big time damage. Small damage might have a hard to getting claimed because they can be argued as wear and tear. Plus I dont think you will be dropping your camera any time soon. Heck, I dont even trust people using my camera, except for close family and a good friend who knows how to use one. I trust that you treat your camera as well as it should be treated.

[Trevor Ash]

Matt is completely correct here. With any insurance policy there's always a chance they won't renew it. Only file a claim when you REALLY need it. Don't file tiny little $200 claims.

But I completley disagree with Matt regarding the last part of his post. The purpose of this insurance is in case of disaster such as house fire. Regular home owners and renters insurance policies have a limit on how much they'll cover for things like camera equipment. It's usually in the ballpark of a few hundred dollars MAX.

If you're like me and you take about $5K in equipment out for a few days on a photo trip where you'll be stashing it in a vehicle or even worse sleeping tent it's a great peace of mind. And $2000 is a lot of money for people that would be difficult to replace from scratch. I'd surely file a claim if I lost $2000 worth of gear knowing they'd not renew and that I'd have a hard time getting another policy.

[JKeena]

I want to insure it in case I am traveling, or at a skatepark, or it is in my car. I am always in a public place when I'm shooting and I'm just wary of the worst that could happened. I am moving out to California in May so I don't think I will have my car any more and so I won't even be paying auto insurance. I just want to insure my equipment because to me it's A LOT of money. If a biker runs over my flash and PWReciever, that's $500 gone. So you are saying for something like that I wouldn't put in a claim but if my entire bag got stolen from the airport or something then I would want to claim it. What are your thoughts?

[EmbeddedMatt]

Well I think we'll have to agree to disagree. There is only one case where I would insure against a $2000 loss -- if I were dirt poor; I would not be able to replace the loss; and if I depended on the equipment for my livlihood.

You add the additonal case of buying "peace of mind." I think that is OK as long as you recognize that your peace of mind is coming at a very high cost. Just as surely as the house almost always wins, so it is with insurance companies. You'd be much better off putting your premiums in a savings account in a rainy day fund for small losses

Look at the best case scenario for insuring. You pay premiums one time and your $2000 gear is stolen. You come out ahead to be sure, but you probably don't get renewed. You have to file a claim. You have to argue about depreciation with an adjuster if you didn't buy full replacement coverage. Oh, don't forget your deductible. What a hassle! And usually you're going to pay a lot of premiums before you file a claim (if ever).

Insuring small losses is a loser's game. Show me an actuary who has a deductible lower than $2500. I think it would be very hard to find one.

Finally, it is insane to buy "peace of mind" for a camera unless you have real peace of mind: auto liability, disability, and term life if you have dependents. Anyone who puts a camera ahead of that is making a huge mistake. We don't know that the original poster is deficient in his other insurance coverage, but the vast majority of us are. Unfortunately, it's probably a safe bet.

I've probably put you to sleep by now, but look for "The Invisible Bankers" by Andrew Tobias in your library (it's out of print). He makes the case much more convincingly than I ever could.

[Trevor Ash]

look for "The Invisible Bankers" by Andrew Tobias in your library (it's out of print). He makes the case much more convincingly than I ever could.

Perhaps I will. Sounds interesting.

[mjs1973]

Well I think we'll have to agree to disagree. There is only one case where I would insure against a $2000 loss -- if I were dirt poor; I would not be able to replace the loss; and if I depended on the equipment for my livlihood.

You add the additonal case of buying "peace of mind." I think that is OK as long as you recognize that your peace of mind is coming at a very high cost. Just as surely as the house almost always wins, so it is with insurance companies. You'd be much better off putting your premiums in a savings account in a rainy day fund for small losses

Look at the best case scenario for insuring. You pay premiums one time and your $2000 gear is stolen. You come out ahead to be sure, but you probably don't get renewed. You have to file a claim. You have to argue about depreciation with an adjuster if you didn't buy full replacement coverage. Oh, don't forget your deductible. What a hassle! And usually you're going to pay a lot of premiums before you file a claim (if ever).

Insuring small losses is a loser's game. Show me an actuary who has a deductible lower than $2500. I think it would be very hard to find one.

Finally, it is insane to buy "peace of mind" for a camera unless you have real peace of mind: auto liability, disability, and term life if you have dependents. Anyone who puts a camera ahead of that is making a huge mistake. We don't know that the original poster is deficient in his other insurance coverage, but the vast majority of us are. Unfortunately, it's probably a safe bet.

I've probably put you to sleep by now, but look for "The Invisible Bankers" by Andrew Tobias in your library (it's out of print). He makes the case much more convincingly than I ever could.

No everyone can afford to replace $2000 worth of equipment all at once and $20/ year is a very small price to pay for that piece of mind. If you can afford to replace the equipment out of your own pocket, then that is great, for you, but not for everyone else. And if you took that $20/year premium and put it away to replace your losses like you suggest, well, I don't know about anyone else, but saving $20/year is going to take a lot of time to build up enuf cash to replace anything. Sure, in the end the house is going to win, they always do, but I don't see that $20/year as a major loss, and certaintly you shouldn't either if you can afford the 2 grand to repalce the gear at the drop of a hat. As far as the deductable goes, the insurance companies I have talked to don't have a deductable on this type of policy. My gear will be insured after the 1st of the year, and if I have to file a claim, I will. If I don't, that's fine too. And if I get dropped, there are plenty of other companies out there that will insure me.

That's my 2 cents.

[samgood]

I guess insuring your photography equipment is definitely smart, especially with the value you’ve got in your bag. It’s worth looking into options like Bamboo Insurance , which could offer coverage tailored to your needs. Make sure to check what’s covered, including accidental damage and theft, to protect your gear properly. You’ll feel a lot more secure knowing your equipment is insured, especially as you start taking it out more after graduation. Good luck with finding the right insurance for your gear!