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| Declared Value and Insurance http://www.luthiersforum.com/forum/viewtopic.php?f=10101&t=30326 |
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| Author: | Bill Hodge [ Tue Dec 14, 2010 6:39 pm ] |
| Post subject: | Declared Value and Insurance |
SO, I went to USPS today to ship a guitar to MN. Of course I wanted insurance, apparently, one can buy insurance for any declared value they want. That said, should the guitar be destroyed in transit/handling by USPS, the burden of proof would be on the shipper to prove the "declared value" as actual worth with an appraisal of said instrument. My question is, and I'm sure this is the case with any insurance, how does one go about getting an appraisal of an instrument at it's resale value? Or do those of you who ship guitars across state lines on a regular basis simply declare cost of materials for insurance? If so, it seems that there is still the burden of proof that would need to be presented for the value of materials. Until now, all the instruments I've built have been hand delivered by me via pick up at my shop or a local region drive. During the years that I was building custom fine furniture, I typically delivered and set up the furniture at the location of the recipient, thus no need for shipping coverage. Instruments it seems however, are a bit harder to certify. Or, are there folks in each state that do appraisals for custom instruments? Please, all who are in the know regarding these matters, I would greatly appreciate your input. |
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| Author: | Daniel Minard [ Tue Dec 14, 2010 6:56 pm ] |
| Post subject: | Re: Declared Value and Insurance |
Shippers are notoriously lax in honouring insurance claims. Third party insurance is probably your best bet. I have done this a couple of ways. Attaching a temporary policy for the instrument, while it is in transit, to my shop insurance policy is one. The cost was under $30.00. You can also have your client add the instrument to his / her household policy. Either way the broker should be told the instrument is being shipped, name the carrier & the dates the package will be in transit. A fax or e-mail confirmation of the coverage should be included. Good luck... It's always scary, sending a shiny new guitar across the country! |
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| Author: | Bailey [ Tue Dec 14, 2010 10:34 pm ] |
| Post subject: | Re: Declared Value and Insurance |
I am a value appraiser on woodcarved items (not guitars)...but...I have had a few insurance companies call me for value assessments on damage claims. Here's what you will need to do if it comes up. First, get a value appraisal from a reputable guitar maker/shop other than yourself keep this (just in case). Bet you know someone!!!! A copy of this guitars transaction value (Paid) if applicable.. Verified copies of similar priced guitars you've made should also be ready (just in case). That will be your first line of defense. If the insurance contact does not accept your invoice or these appraisal values as real, you should demand that a independent builder or credible guitar repair shop near give an appraisal range. This will probably include (unfortunately) a repair estimate and a replacement value. I assume this is a custom order wish cash already exchanged for its value...and not a shipment for consignment. A custom order will usually proceed with a reasonable replacement value. Speculatory build on consignment value may be discounted since no money or final cost has been established. I doubt it will get to a 3 rd party appraisal. I can't tell you that you will be compensated in full. I don't write the checks. Just make sure you have ample coverage and good documentation.....just in case the worst happens. Kent |
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| Author: | npalen [ Wed Dec 15, 2010 12:11 am ] |
| Post subject: | Re: Declared Value and Insurance |
It has always seemed to me that if a shipping customer is willing to pay the money to buy X dollars worth of insurance then that in itself ought to be the proof of value. I suppose there are crooks out there, however, who would ship a pre-damaged instrument then try to collect big money at the other end. |
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| Author: | Jim Watts [ Wed Dec 15, 2010 12:59 am ] |
| Post subject: | Re: Declared Value and Insurance |
Doesn't the bill of sale set the value? |
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| Author: | Bill Hodge [ Wed Dec 15, 2010 4:01 pm ] |
| Post subject: | Re: Declared Value and Insurance |
Thanks Daniel and Kent, I'll look & investigate further into those options. Nelson, I agree with your thinking on that but apparently it doesn't work that way, or at least that's what I've been told. Unfortunately, I'm no expert on insurance or the laws regarding insurance in this field. Jim, That's what I'd always assumed in the past along with build records and recording of materials and hours, but apparently not. At least with USPS's insurer. Unfortunately, I don't think that UPS and FedEx's insurers will be any better. It's a crying shame that Heritage no longer covers this. I had high hopes in their policy until I found out that shipping was no longer covered for the sale value. At least, that's what I thought someone had mentioned in another post regarding insurance. I used to be covered by a different insurance carrier a few years back (I'll not mention their name in open forum) until one day I got a letter from them saying they choose to no longer cover small businesses of my sort. It's amazing that America was built and made strong on small businesses, but now, no one even seems to recognize or remember that it's always been the financial backbone of this country. Instead, it seems as though there are factions that would just as soon see small business disintegrated. OK, I'm done whining now, guess I'd better get busy and find some reliable coverage. |
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| Author: | woody b [ Wed Dec 15, 2010 6:49 pm ] |
| Post subject: | Re: Declared Value and Insurance |
I use shipping insurance from U-Pic. http://www.u-pic.com/Home.aspx I inquired a few years ago about value. They said if I could show that I recieved payment, before the shipping day that would prove value. I've never had a claim with them though. |
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| Author: | Bill Hodge [ Wed Dec 15, 2010 7:20 pm ] |
| Post subject: | Re: Declared Value and Insurance |
woody b wrote: I use shipping insurance from U-Pic. http://www.u-pic.com/Home.aspx I inquired a few years ago about value. They said if I could show that I recieved payment, before the shipping day that would prove value. I've never had a claim with them though. Thanks Woody, I think I've got that site bookmarked somewhere. Guess I'll dig around and see if I can find it, or better yet, just bookmark the link you provided here. 
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