By James Fletcher
Getting the sum insured right is the foundation of useful instrument insurance. Here's how to value your instruments accurately.
Why Instrument Valuation Matters
Insurance only works if the sum insured is right. Under-insure your instrument and you'll receive a payout that doesn't cover the cost of replacement. Over-insure and you pay unnecessary premium. For modern instruments purchased recently, the purchase price is a reasonable starting point. For secondhand, vintage, or appreciating instruments, current market value is what matters — and getting it right requires a bit more work.
New vs Secondhand Instruments
For new instruments purchased from a dealer, the purchase price is the right starting point for your insured value. Update this annually to reflect any changes in retail pricing, particularly for imported instruments where currency movements can affect replacement costs. For secondhand instruments, the purchase price you paid is a poor guide — the market may have moved significantly since your purchase. Check current asking prices from reputable dealers for comparable instruments in comparable condition, and use the current market replacement cost as your insured value.
When You Need a Specialist Appraisal
A specialist written appraisal is recommended — and sometimes required by insurers — for instruments above certain value thresholds. As a general guide, arrange a specialist appraisal for:
- →Any instrument with a replacement value above $5,000
- →Vintage or antique instruments where age affects value
- →Custom or one-of-a-kind instruments that cannot be easily compared to standard market prices
- →Instruments with unusual provenance or historical significance
- →Any instrument where you're uncertain of current market value
Finding a Qualified Appraiser
Instrument appraisals should be conducted by someone with specialist knowledge of the instrument type and the current market. For guitars, this is typically a specialist guitar dealer or experienced luthier. For orchestral instruments, a string specialist or orchestral instrument dealer. For synthesizers and electronic instruments, specialist dealers in vintage and collectable gear are the right source. Avoid general auction house appraisals for specialist instruments — the appraiser needs to know your specific market.
💡 Tip: Ask your insurer what format they require for appraisals. Most require a written document on letterhead with the appraiser's credentials, instrument description, condition notes, and current market value assessment.
Keeping Values Current
Instrument values change over time — sometimes dramatically. Certain guitar models, vintage synthesizers, and orchestral instruments have appreciated significantly in the past decade. If you set an insured value three years ago and haven't reviewed it, there's a real chance you're under-insured. As a minimum, review all instrument values annually at policy renewal. For instruments in actively appreciating market segments, consider a valuation review every 18–24 months. An instrument that cost $2,000 ten years ago might be worth $6,000 today.
Creating Your Equipment Inventory
A complete, current equipment inventory is the foundation of both your insurance programme and any future claim. For each instrument and piece of equipment, record:
- →Make, model, and year of manufacture
- →Serial number (photograph the serial number plate)
- →Purchase date and purchase price
- →Current estimated or appraised market value
- →Condition notes and any modifications
- →Photographs — full views and any distinguishing features
💡 Tip: Store your equipment inventory and photographs in a cloud service that you can access from anywhere — not just on a hard drive at home. If your studio is burgled or destroyed by fire, you need the inventory to be accessible from a different location.
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