Hifi Insurance

I buy equipment that is extremely heavy :grinning:

When I lived in a major UK city 15 years ago some insurances asked for alarm, but at that time didn’t need it monitored or professionally installed - I wouldn’t want to pay the cost of an inferior common or garden installation with monitoring when I can make it better for a lot less.

Where I live now I have had some quotes requiring alarms, but not significantly different from others not requiring, and that is with contents that is quite a bit in excess of £100k, though unlimited insurances don’t ask the total.

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I assume that wasn’t serious as a reason for under-insuring because theft is virtually impossible … but just in case anyone thinks it coukd be a good idea, unless at the time of taking out the insurance you specifically tell the insurance company of the things you have that you don’t want insuring, if you make a claim for anything else the insurance company will include everything in total value, and if on that they assess that you are under-insured you’ll only get that proportion of anything that is lost. (And even very heavy things can still be damaged in a fire!)

Exactly my thoughts. My German Shepherd is a far greater deterrent than any alarm system, but unfortunately not approved by insurers…

Is he any good at putting out fires?

Presumably not until he’s had a big drink after last going walkies

Yes, that was said in jest.

However, the bit about heavy equipment is not entirely incorrect. Would take 2-3 people to lift one of my speakers, and that’s with a bit of equipment (ropes etc). Having said that, the house and contents are insured for fire and other disasters, though if such a thing would happen, the last thing I’d probably miss is the hifi as it is ultimately replaceable (at huge cost, granted, but still replaceable).

First trip out in a morning and I swear he could fill a bath…
But on a serious note, a monitored burglar alarm wouldn’t save much in the event of fire, and in my view is no deterrent to scumbag thieves, if they want to get in they will - I just try to make sure they will have a hard, noisy, messy time doing so.
Another tip if you have it installed - the very first thing a prepared burglar will target upon gaining entry is the CCTV hard drive, so keep it in the most obscure place you can think of…

I’m sure that the biggest variable in domestic insurance is how much the insurer can get away with. My parents’ joint buildings and contents cover had swelled to £750 before I took over financial management and renewed with a very slightly downgraded policy at £107…

Self-insurance is worth considering when premiums are getting high. I’m very circumspect about claiming for anything under a couple of grand as the insurance industry will make damn sure you pay that back in premiums, although perhaps not quite as damn sure as in motor insurance.

But you need to be careful that you are covered against substantial or total loss. By all means, reduce the premium by increasing the ‘excess’ to whatever level you are comfortable with, but savings under this head are quite modest, however worthwhile.

Agreed, that’s why I have buildings insurance, because a total loss would be catastrophic however vanishingly small the risk (how many people of the tens of millions of property owners in the UK ever suffer a total loss?). But insurance for say £10-15k worth of hi-fi? If the premiums are £250 per annum, and the probability of a total loss over 50 years is 100% (which it wouldn’t be) it’s a wash.

My Hi Fi is a multiple of that £15k, and when all the rest of house contents are reckoned, I could not take the risk of a total loss, however remote. Bear in mind that if you only insure for 50% of house contents and you suffer a total loss, you will, in effect, receive only 25% in the event of a claim.

Not sure where that comes from? If you are under-insured, say only for 50% of gross value, they pay 50% of each item - whether your loss is £15k or £150k.

As for total loss, that thankfully is extremely rare - but best part of 100% of high value items (whether jewellery or hifi) is much more likely a target in burglary, especially a planned burglary as opposed to opportunistic.

The principle is the ‘averaging clause’. If the contents are only insured for half the total value, then in the event of a total loss (or any loss) you will only receive half of the insured value, by reference to the total value of the contents compared to the value which you have insured. Contents worth £100k insured at £50k will give a total insurance payout of £25k for a total loss.

I don’t get that - it seems to be multiplying by 50% twice. It’s not what happened to me: admittedly many years ago now, and the claim was small (equivalent to maybe £2-3k in today’s money): we were underinsured by about 25%, so they coughed up only 75% of the value of the lost item (less the XS).

Insurance is not a bet about what loss you may incur. It is about covering the actual value of your contents, (or your home). If you pay a premium half of what you should have paid, the insurance company will pay you half of the value upon which you have paid a premium. Half x Half = 25%.
Unfortunately, too many find out too late, but it can be devastating. Rule 1, never underinsure for either home or contents.

My understanding, reinforced by personal claim experience, is that if you paid for half the true value, they pay back for only half (meaning half for any item). On what source of information are you basing your 50% of 50% = 25% payout?

Google ‘insurance average clause’. The principle is fundamental to insurance, although perhaps not always enforced in small claims, but if you ever have to press the ‘big button ‘, it could be catastrophic. Never go for a short term cash advantage without all the facts…

Google ‘insurance average clause’. The principle is fundamental to insurance, although perhaps not always enforced in small claims, but if you ever have to press the ‘big button ‘, it could be catastrophic. Never confuse apparent short term saving with

Ok, I Googled “insurance average clause”, and found a “formula” for calculation.
Formula: Claim = Loss Suffered x Insured Value/Total Cost.
So, if insurance vale say 50k but actual total cost = 100k, ans an item worth 20k lost, claim = 20k x 50/100 = 10k. That is what I said, not 25% of value as you said. Where do you get your 50% of 50%?