Below is a breakdown of how instruments and equipment are valued under this insurance 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). Note: 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. 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 instrument of comparable material and quality replacing your antique, rare or one-of-a-kind instrument.
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.