p.1 #1 · How to value equipment for insurance purposes
As of the first of the year I closed my photogarphy. I had my equipment insured with The Hartford and now that I no longer have a business Hartford suggests I list my equipment on my State Farm home owners policy as a rider. My question is how to value the equipment for replacement purposes.
For example I paid $11,500.00 for my 800mm f/5.6 but they are now selling for $13,900.00
I can find replacement cost for my 1DMIV and 5D II but what about replacement costs for a 1DIII, a 50D, Gitzo GT1325, etc?
p.1 #2 · How to value equipment for insurance purposes
Generally, a replacement value claim will buy you the current equivalent of an out of production item. For the 1DIII, it would be a 1DIV. Of course, that's only if your policy doesn't pro-rate the value of lost items for their age, in which case, it would be the value of a 1DIV, less depreciation.
p.1 #3 · How to value equipment for insurance purposes
Check with a local camera store that serves pros. I use Hunts Photo here in Melrose, MA. For a small fee ($35 I think) they will create a list of all your gear, including serial numbers, and also the replacement value for insurance. They use the new cost of the closest available new gear for items that are out of production. For example, I have a non-USM 100mm macro. They listed the current 100mm non-L. When my 40D went out of production, they listed the cost of a new 50D as a replacement.
Their manager signs off as having inspected all the gear, and the list is exactly what your agent will need for the rider, since it includes all the serial numbers and costs.
p.1 #4 · How to value equipment for insurance purposes
When you make a claim you will probably have to provide proof of purchase, although having the professional valuation will probably remove the need for this.
p.1 #5 · How to value equipment for insurance purposes
The way my policy works, is that I set a price for the value of the item. It really doesn't matter what the price is because it is decided before the claim. Then if there is a loss, I get a check for the preset value. The reason that the value doesn't really matter to the insurance company is that the rate I pay is based on the total value of my equipment. In other words, if I decide that my 1DIII is valued at $5,000 (the price of a new 1DIV) then my premium is "x." If I decide that the value of my 1DIII is $2,000 (the price I could pay for a used 1DIII of similar condition) then my premium is something less than "x." So from my insurance company's perspective I set the amount that I want to be paid for a particular item should I make a claim, and it sets the premium that it wants to cover that potential loss.
