Yes, it does. You can’t insure something for more than it is worth. It’s not the insurance company’s problem that it will be hard for you to find an identical saddle used.
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Thanks! I’ll try this.
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It depends on what you call “made whole.” Prior to the loss I had an item that cost me X. After the loss I receive a check for Y. Y is less than X. The market value of the item isn’t necessarily it’s value to the owner which is why stated value policies exist. You absolutely can insure for more than something is worth so long as you’re willing to pay the premium.
No what you are describing is moral hazard. The temptation to insure something for more than its fair market value and then file a claim is great. Remember, you don’t have the spend the money on an actual replacement. I seriously doubt you could get a stated value policy for more than the FMV. It is not a matter of being willing to pay the premium. I don’t think Lloyds or the London market would write this kind of coverage and they are the source for esoteric risks.
Maybe you should just enjoy this saddle and not worry about getting every penny for it in the unlikely event something adverse happens.
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Contact Corinne at C Jarvis Equine Ins —they offer tack/equipment insurance
This is correct. You can’t “profit” off insurance by insuring something for more than it is worth.
unless its life insurance then you usually can set the policy value at nearly any amount as long as you can pay the premium
To a point, Clanter. You can buy a lots of life insurance but companies do underwriting and have check about other coverages. Back in ancient times, I worked in the legal department of a life insurance company. We had a claim where the insured bought dozens and dozens of small life insurance policies. He paying something like half his income in insurance premiums. One clear night on a straight road, he ran into an underpass. The companies were all over it as a suicide, but it could not be proven. Very suspicious, but the wife was shocked as anyone about the insurance. But there was no reason on earth why he bought that much insurance.
Anyway, property coverage is not underwritten the same way.
I hope the OP enjoys her nice saddle and always has a horse that fits it.
My jewelry is insured for more than I paid for it - appraisals in jewelry are always for more than the piece costs. Not even accounting for inflation, appraisals are well known to be 30%+ high.
Explain that, please? If you’re going to make blanket statements that you can never insure something for more than it’s worth. Other people in this thread are saying these policies exist and I got some quotes that indicate that to be the case.
I am looking to be made whole for a loss that is not my fault - such as the damage that happened to my saddle this spring, or a theft. If I can’t replace it with the payout, because they are paying me the value of a used saddle that doesn’t exist, then there’s no point in having insurance on it at all. I am fine with normal depreciation but some quotes I am getting are saying 25% per year, which is insane. It is not worth $0 after four years. Thankfully, two vendors mentioned in this thread seem to have no issue with not depreciating that item and doing stated value with receipts for purchase.
I admit I didn’t expect to be in the situation of needing to pay $3500 for repairs to a saddle that a horse fell on. I don’t wish to bear that expense again which is why I am looking for insurance against damage and loss.
Selling it because it doesn’t fit is a totally different question and not really material. I also don’t really appreciate the insinuation that I am trying to perpetrate some kind of insurance fraud by replacing a legitimately insured item with a like item.
I am not insinuating anything about fraud Soloudinhere. I have carried insurance licenses for almost 40 years and I think you are looking for something that doesn’t exist outside of Lloyds or the London market. Jewlery is different because the value of gold, silver, diamonds etc. does fluctuate because it is a tradeable commodity. So the replacement value could be very different at the time of a claim. A saddle is just not going to have that commodity value. But hey, by all means keep looking for coverage and I hope you find an insurance product for your risk.
As I said, ENJOY your saddle. I hope it always fits every horse you own so that you get maximum pleasure and utility for it. Just good thoughts, that’s all. That was the point getting the saddle, right?
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A $7500 saddle!?! :eek:
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I’m surprised that it’s so shocking to some to have something insured for replacement cost vs. resale value. I thought this was a common thing.
Interesting as most insurance companies offer “replacement” coverage because everything depreciates so if your 5 year old apple computer gets stolen, insurance w/ replacement coverage would get you new apple computer. For certain items like fur coats and expensive jewelry might have additional riders to cover them.
Not material? Sorry, it’s central. That’s how we define “fair market value.”
You present a moral risk for the reasons noted. This doesn’t mean you’re a con artist; it means there will always be a temptation if you ever run into financial difficulty.
I once worked for a company that wrote a $750 Million dollar fire insurance policy after a fire where there was significant loss of life. The premium, I understand, was actually truly impressive. It might have been in excess of the face value of the policy but I don’t know that. The company actually made money on the deal and the insured was relieved of a major liability burden that technically put them into bankruptcy and grossly impaired their ability to stay in business.
So you can insure about anything if your willing to pay the premium.
G.
*Note that “compulsion” here is legal compulsion, an act that is mandated by the power of the state, not one mandated by the personal circumstances of either buyer or seller.
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G, I meant that selling it because it didn’t fit is a totally different question. Obviously if it didn’t fit I would sell it at market and take the depreciated loss because that’s how it works. But if a horse we’re to say, drag this saddle across a parking lot (seen it happen) it’s worth to me is more than it’s market value in destroyed condition. That is why we insure such things.
Anyway, there were a couple vendors mentioned who were willing to write a policy with receipts and photos and a standard 10% depreciation. Premium was affordable. So I’m all set.
I understand your goal. I was just pointing out that establishment of valuation will be quite difficult in a unique item. And at the end of the day if you have a declared value policy then that’s the limit of the company’s liability.
Something, too, about property losses is that if the company finds a product damaged beyond reasonable cost of repair they can “total” it. If they pay out the claim then they can take the property (I believe that was noted in a comment above). They don’t have to, but they can. If they do then they won’t insure it again even if you get it fixed. Another company might, but they might not.
Good luck and I hope you never have to make a claim against your policy!!! 
G.
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My homewowners covers all of my personal belongings no matter where they are stored. So my saddle and tack - all insured. I do have to check w/ them because some items (as mentioned furs, jewelry, antiques) may be insured separately on a policy. For instance I have a diamond ring from my grandmother, basic coverage would limit it to a maximum amount of say $3500; If I insured if full value of say$5,000 that would also cover it if any diamonds fell out. A custom saddle might fall under the same category.
Also - sort of off-topic but if you’ve done any upgrades to your home granite counters, new hardwood floors, marble tiles etc - let your homeowner’s know, it really helps if yu have to file a claim.
We have detailed, date stamped photos of the interior of our house. Learned that lesson years ago after a flood claim on renters insurance while I was in college. Receipts scanned for all our furniture we’ve bought since living here. Even have receipts for the higher priced clothing items scanned and saved online.
I’m probably overinsured in a lot of regards but I have lost a lot previously without it - and now I’d rather pay the premiums. Heck, even my dog has health insurance. My tires have hazard insurance. It costs me a lot but brings me a lot of piece of mind.
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I hear you. I had a main water line leak 2 years ago… live in a condo w/ master policy.Condo laws vary from state to state so anyone who lives in a condo - find out what your state’s condo laws are. In Maryland, the unit where damage originates is subject to up to a $5,000 deductible. My homeowner’s covered that (another thing to check homeowners/condo insurance) and then also in MD, master policy only covers builder installed items - so builder grade flooring, cabinets etc. My flooring all had to be removed/replaced but fortunately my homowners new that I had upgraded carpet and flooring - so I didn’t have to settle for builder grade replacement carpet - I was made “whole”.
