Gustavsson Insurance Appraisal?

Discussion in 'The Small Company Luthiers' started by Fantom1, Feb 17, 2006.


  1. Fantom1

    Fantom1 Member

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    I'm renewing my renter's insurance, and with the seeming ever raising value of the Gustavssons I'd like to have it insured. My question is how do you go about getting a guitar like that appraised since so much of the value is theoretical?
     
  2. enharmonic

    enharmonic Old Growth Gold Supporting Member

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    I'm no insurance guru, but my guess is that as long as they are being produced, you can only get it insured for the actual replacement cost. That is different than say, a 1958 Les Paul.

    Insurance companies don't insure for perceived value. My experience is that you will be good to go on replacement value. If or when Gustavsson stops making that instrument, you will then require an appraisal from a recognized guitar value "expert". My guess would be someone like a George Gruhn at that point.

    Good luck.
     
  3. highgeer

    highgeer Member

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    Most insurance companys let you value item at whatever you want(might need to be on a separate rider). Your premium will be based on the declared value. If you bought the guitar for 5K, and they are going up; I'd value it at over 7K just to be safe. Remember that your premium will be proportional to your declared value/replacement cost/appraised value. If you do not specify a separate value then most companys will give you appraised value(usually pretty low), or just a banket amount to cover all of your belongings. Just talk to your agent and see what he says.

    Mike
     
  4. BradyTM

    BradyTM Guest

    got a recent quote near $8. replacement cost is the way to go right now
     
  5. Jon C

    Jon C Silver Supporting Member

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    yes and no... just because you say it's worth 10K doesn't mean it is and many policies give the right to require an appraisal in case of loss even with an agreed value --- read your policy carefully to see what it says.

    No one buys theoretical guitars and you can't insure for speculative value. If the luthier is still around, get something from them in writing that states the replacement cost. That's your value now. If they're not around, you really should find someone who can give you a knowledgeable appraisal. Picking a value out of thin air will not insulate you from the insurance company contesting a claim later if the value is not solidly documented.

    If you don't get an "agreed value" based on an appraisal, you're usually left with "Actual Cash Value" coverage, which is the depreciated value based on the insurance company's depreciation schedules, with no consideration for how special it was to you or anything you may have customized or personalized. ACV is nearly always much less than agreed value.
     
  6. kingsleyd

    kingsleyd Frikkin genyus Gold Supporting Member

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    I have a couple of Klein Electrics and the same issue with insurance. Jon C is right: get a letter from the builder -- or, in the case of Gustavsson, the US distributor (Wildwood) -- that documents current replacement cost. On the Bluesmaster '59, $8K is about right.
     
  7. jaimo

    jaimo Member

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    LOL! Dude, as soon as I can play a house, I'll buy one!
    But hey, thats just me....:cool:
     
  8. CS'56

    CS'56 Member

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    Are they going for 8K now? Last I heard they were 5.5 to 6K
     
  9. Fantom1

    Fantom1 Member

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    Haha, well I'm 22, and I basically lucked out in purchasing it for 3.5K. I took a year off after high school to play hockey, and in that situation I didn't have to pay rent/food/etc. I worked a job that year, then saved the money and bought guitars, so that's how I wandered into the it. Turned out to be a good investment though.
     
  10. fullerplast

    fullerplast Senior Member

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    Keep in mind that if you gig out at all, your renter's insurance may not cover you because you are put into a "pro" category. It doesn't matter if the guitar is stolen from home or not.......

    Consider special musical instrument insurance if you want to be covered under more conditions (while travelling, etc) or if you gig.
     
  11. rusmurf

    rusmurf Member

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    Lol, what do they say about assumptions?
     
  12. dwes

    dwes Member

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    Howdy,
    Get an appraisal. Provide a copy of the appraisal to your agent and keep the original in a safe place. Make sure you get a copy of the endorsement to your renter's policy confirming the accurate info on the guitar. Update the appraisal as necessary; generally every 5 yrs. (on jewelry), or maybe more often if the item changes dramatically in value. Maybe Steve at Wildwood would provide one as he is a US dealer. The cost of the appraisal should be minimal in comparison to your instrument's value and potential risk you face. Plus, in many cases, when an item is "scheduled" on a policy, it can be covered for perils other than the standard policy coverages: ie. breakage and loss.
    Good luck,
    Dave
     
  13. Fantom1

    Fantom1 Member

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    Cool, thanks for the advice everyone.
     

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