2. misc-audio
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Home owner's insurance question

Reading through my policy it would appear that through the personal property section an audio system is covered for loss.  No special rider is necessary.  But the replacement cost section states that the insurance company won't pay until you actually replace your stereo system.  If one makes a big claim, let's say $100,000, how does one pay this first if you're going to get paid afterwards?  What if you don't have the money to re-buy your system or you choose not to replace it?  Can any insurance experts explain to me how these home owner policies actually work?
philharmonicpete

Showing 2 responses by mcondo

mcondo
199 posts
 
Ex claims guy here. you are typically covered for replacement cost - insurance carriers will work with vendors to buy the equipment for you. They will get a better price than you and I. If you don't replace you will get actual cash value vs. replacement cost. 
mcondo
199 posts
 
Jumping back in here. Policy limits will certainly play a role, as will the cause of loss (peril). If you have a renters policy your limit may be too low for a high end system. Raise the limit if this is the case. If you own, typically your contents coverage will be a percentage of your house value - Hopefully house value will be high enough so say 50% contents coverage will cover the equipment. Check your limits. Boxes are good, but receipts are better and photos are a must if equipment is highly valued. The key in any claim is to help the adjuster value your loss and close it out. They have a pending and love to close claims. Make it easy for them by providing appropriate documentation. If you are with a major carrier I think the adjuster is more important than the agent ( who has little to do with the claim).  
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