Anderson Group Frequently Asked Questions
Does my homeowner's policy cover my musical instruments?
- Most homeowner’s policies will cover musical instruments up to a certain limit. This limit is usually less than $2,000 total. If you have an instrument valued more than this amount, you should consider Musical Instrument Insurance. Also see policy valuation types below.
- Most homeowner’s policies do not respond at claim time if an instrument is used being used in a paid performance. That is considered business use and if a loss happens while being paid for a performance, your homeowner’s policy may not pay. Musical Instrument Insurance with Anderson Group covers casual, professional and business use of your Musical instruments.
- Did you realize your homeowner’s policy does NOT cover flood damage? Unless you have a separate flood policy covering personal property, there is no coverage for your musical instruments. Musical instrument Insurance covers flood damage to listed instruments!
- Did you know your homeowner’s policy does NOT typically cover earthquake Damage let alone earthquake damage to musical instruments?
- Musical Instrument Insurance is structured to cover perils not normally covered on a homeowner’s policy, such as falling, cracking, etc. Every claim is reviewed by a company adjuster to confirm coverage; however, a homeowner’s policy will not pay for a musical instrument breakage due to bumping, falling, dropping etc! There are no listed perils like these listed on a homeowners policy! (A complete copy of the Anderson Group Musical instrument Policy may be seen by clicking here).
- A musical instrument insurance policy provides a deductible as low as $250 deductible, whereas your homeowner’s policy may have a deductible upwards of $1000 or more!
- Your musical instrument insurance policy will provide agreed value coverage for your instrument, while your home policy may only provide Actual Cash Value (Replacement Cost minus Depreciation). Typically musical instruments that are in top condition generally have little to no depreciation, so this is a very big question to ask your agent! You wouldn’t want to find yourself in a predicament! Also see policy valuation types below.
- Does the total value of your musical instruments get deducted from the Personal Property (Coverage C) portion of your policy? If so, please remember that coverage is there to replace your personal property from linens to appliances! Adding replacement musical instruments under that coverage may take away much needed coverage.
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Do you have a multi-policy year discount?
Yes! Here is how the savings would add up if you would like to prepay for a two year or three year policy term:
Two Year policies will receive a:
• 5% discount off the policy premium ($12.50 savings on a 2 year MP policy)
• 20% discount off the policy fee ($10.00 savings)
• Minimum savings for a two year minimum premium policy is $22.50!
• This represents a total payment required for a two year minimum premium policy of $277.50 which is an overall 7.5% savings.
Three Year Policies will receive a:
• 10% discount off the policy premium ($37.50 savings on a 3 year MP policy)
• 25% discount off the three year policy fee ($18.75 savings)
• Minimum savings for a three year minimum premium policy is $56.25!
• This represents a total payment required for a three year minimum premium policy of $393.75 which is an overall 12.5% savings.
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I want to purchase a multi-year 2 or 3 year policy. Is there any "fine print"?
Policies cancelled mid-term will receive a charge back for any unearned discounts if you request cancellation of your policy when we calculate any unearned premium. (Policy fee's are considered fully earned at the time of purchase.) Mid-term policy endorsements will be calculated and billed based on the total number of days remaining until your policy expiration at a pro-rata discount of 5% or 10%.
Where do I mail requests for customer service, premium payments and correspondence?
Anderson Musical Instrument Insurance Solutions, LLC
1570 Lakeview Drive
Sebring, FL 33870-7959
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I sold my instrument, when while I receive a check for the return premium?
Credits of $24.99 or less are held on account and applied towards your renewal, if your policy will be renewing within six (6) months. Credits of $10.00 or less will be held on account and applied towards your renewal. Credits for policy cancellation requests,and return premiums of $25 or greater will be mailed to the latest address on file within 30 days.
If you have a hardship situation, please let us know and we will try our best to accomodate your request.
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Can I insure instruments that I own that I rent to others?
Yes, after underwriting approval.
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What is the cost to add coverage on my policy for instruments rented to others?
There is a flat charge per rental per year of $25 to add coverage for your rental instrument. (Please refer to the Property Leased or Rented to Others Endorsement 221-0163 F 10 03 which can be found in the instrument insurance forms page within the Customer Service area on our website.) 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.
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What information do I need to provide to get a quote to cover my instrument rented to others?
- Name and address of your renter.
- A copy of your agreement between you and your renter.
- Year, Make, Model, Serial number and Itemized value for the instrument that is being rented.
- Renters musical background and experience level.
- Extent that this instrument will be away from your renters premises, along with your renters experience transporting this instrument.
- If your rental instrument is left away from the renters premises, describe how this instrument will be protected when it is not being played.
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Anderson Group emails don't make it past my SPAM filter. What can I do?
We aren't SPAMers, but we use emails a lot to talk to our customers. Emails occasionally get stuck for one reason or
another. Please take a look at our whitelist instructions to make sure you get emails from us.
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What's the difference between replacement cost, agreed value, and other policy valuation types?
We get this question a lot. We feel this a key part of how differentiate ourselves from the competition! Here is the breakdown on the coverage types...
Actual Cash Value:
Actual cash value coverage (”ACV”) is something that you want to avoid wherever possible. This valuation clause, typically found on most homeowners and commercial property policies, subjects you to a potential for a depreciated settlement at claim time if you are insured at less than 80%, 90% or in some cases, even 100% of the “replacement” cost of the insured property. The typical insurance industry’s definition for ACV is the:
Cost to replace your instrument with a new instrument of similar like kind and quality, less depreciation.
What does this mean? If you do not keep the value up to date on your instrument to 80% to 100% of “replacement cost” and have an ACV clause on your policy and experience a coverage loss, you may well receive less, and possibly significantly less, for the repair or replacement of your instrument. The good news is that most musical instrument policies, including Anderson Group's, DO NOT place an ACV valuation clause on their policies.
If you have a Replacement Cost valuation clause, the deduction for depreciation is removed from your policy, otherwise the definition noted above for ACV remains. What you actually end up receiving at claim time is still unclear as you and the insurance company will have to sort out the “replacement cost” for a replacement instrument of like kind and quality.
With “agreed value” coverage, both you and the insurance company have agreed up front on how much your instrument(s) and accessories are worth! Should you experience a covered loss, the insurance company will pay up to the “agreed value” in the case of repair or the “agreed value” if your instrument has been lost, stolen or damaged beyond repair. How do we come up to a mutually agreeable “agreed value”? For instruments currently being produced, we will typically accept the current year replacement cost to replace your instrument(s). In other cases, we may request an appraisal. In all cases, we will let you know whether we will require an appraisal or not. 99% of the policies issued by Anderson Musical Instrument Insurance Solutions, LLC utilize the “agreed value” clause in the policy.
The Anderson Group Musical Instrument Coverage Form also includes additional coverage should your instrument suffer a reduction in value due to a covered loss, up to the maximum “agreed value” limit for the instrument in question.
In all cases, please refer to the actual policy for complete details available here
If these coverage types and what makes us different from the competition is unclear, please feel free to contact us
We are here to help.
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Why do we charge an policy fee for our instrument insurance programs?
Our clients have come to expect a stable, low cost solution to insuring their instruments. It is no secret to anyone that insurance agencies derive their total revenue more often than not by receiving commissions from the insurance company at a pre-determined percentage of the premium. Candidly, without the policy fee, the revenue to administer and service our clients would generate a loss considering the expenses associated with servicing musical instrument insurance at the low cost that we charge. Our options were two-fold; considerably raise the minimum premium to increase our agency revenue thus allowing us to cover our costs and make a profit, or add a small policy fee. We chose the second option.
Fees have become common place both for insurance agencies as well as many many other service related businesses. The overall impact to you is that you are paying less than you would pay then you would have to pay if we did not charge this administrative fee. Don’t take our word for it – ask your colleagues or contact us and we will be happy to give you the names of the other agencies in the country that are offering musical instrument insurance.
Our minimum premium plus the $25 policy fee is considerably less than the competition - and we intend on keeping it that way for as long as claims continue to run favorably. We very much appreciate your business and look forward to serving your instrument insurance needs for many years to come. Should you have any additional questions, please contact us.
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What is the credit card return policy?
You may cancel your policy with a full return of your premium (your policy fee is always considered fully earned) by notifying us in writing within 30 days of delivery of your certificate declarations page for a full refund. You may cancel your policy at any other time and receive a pro-rata refund of the unearned / unused premium by notifying us in writing. We will return your unearned premium (the policy fee is fully earned at policy inception) by mailing a check to the insured address on file in our system within 30 days of receipt of your request to cancel coverage.
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Is there a reader for these [Snagg RFID] chips that is standardized for the whole of North America or just the USA? (I've heard that some chips for animals aren't able to be read because the vet/humane society/shelter... doesn't have the correct reader for that particular chip.)
Snagg uses the Destron Fearing RFID reader, which is the standard used by Schering Plough, the largest supplier for vet scanners in the world. It reads all low frequency chips at the 125Khz to 134khz frequencies. Some readers will only read one type of chip. Snagg does not rely on Veterinarian based readers, opting instead to overnight scanners to police when a recovery is made or a second hand seller is being checked.
If my instrument gets stolen then recovered, who will have a reader to get my information from the chip? Police in all cities large and small? Pawn shop owners?
When a dealer or law enforcement officer has concern about the provenance of an instrument, Snagg is one of the registries that is regularly contacted. Snagg will overnight one of their RFID readers to dealers and law enforcement officials to allow them to scan these instruments. Pawn shops also have access to a shared computer system in which serial numbers are checked. Snagg is the largest registry with the highest recovery rate for musical instruments in the world
Could the chip be used as a way to blackmail an owner if the person who reads the chip information so desired?
The chip carries no information but a code number. Snagg registered customers need to furnish additional information to gain entry to the Snagg database that only the owner of the instrument would know. In short, is the Snagg RFID chip a real deterrent? According to police detectives numbering in the hundreds spoken to by Snagg personnel, high tech tracking devices are an absolute deterrent. This RFID chip is a conclusive way to establish provenance and significantly assist in recovering a lost or stolen instrument if a dealer or law enforcement official pursues contacting Snagg. The cost of six RFID chips is well under $20/each. The cost to register your instrument with Snagg is zero. While our agency has no financial interest in Snagg, nor do we receive any revenue from SNAGG, we sincerely believe that installing a Snagg RFID chip is viable and compelling for our clientele. In fact, we are offering a small discount for Snagg equipped instruments, so one might say say we are losing money for any Snagg equipped instrument. But the real story of course is that the real return will be many thousand fold if a stolen instrument is recovered. Snagg has many of these stories.
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When can i expect a refund on any unearned premium, if any, if my coverage is cancelled by me?
We will calculate a "return premium" based on the number of days to your normal policy expiration date. We will refund and mail our check for any credit balances greater than $10.00 within 30 days of the date your policy cancels to the latest address that we have on file. If we cancel your policy due to non-payment of the full policy premium and policy fee, we agree to forgo the collection of any balances due us up to $10.00. Your annual policy fee is fully earned on the inception date of your policy and is non-refundable.
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