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Gun Insurance

Discussion in 'Off Topic Threads' started by 1oz, Jul 1, 2009.

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  1. 1oz

    1oz Member

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    Jan 29, 1998
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    Location:
    VA
    Anybody use Sportsman Insurance Agency or SIAI ? Would like feedback from customers. What I've read so far sounds good.

    thanks,
    Jim
     
  2. claycruncher

    claycruncher TS Member

    Joined:
    Jan 29, 1998
    Messages:
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    Great rates; Great service. I've used them for the past 5 years, had 1 claim and they were great to work with. I highly recommend them.

    The major difference between SIAI and some other insurance offerings (NRA for example) is that SIAI offers a lower rate per $100 insured ($1.25) but the insured value is based on the current list price. This coverage provides full replacement if you lose your gun.

    Other insurance like the NRA costs about $1.65 per $100 insured but you get to define the amount of coverage you want. I found that between the price variance per $100 insured and the amount of coverage I specified I actually got better coverage for about the same money. If I incur a loss it made sense for me to go the SIAI approach since the lower premium rate made up for any difference in the amount of coverage I may elect to have. I wanted to be assured that if my K80 combo was stolen that I would get a brand new one and not have to come up with additional cash to replace my loss. You'll have to determine which approach to coverage best fits your needs.

    An example may better explain what I'm talking about. I don't know the current rates so the rates in my example are what they were about a year ago when I did the analysis.

    Assume I have a used K80 combo that I purchased for $10,000.
    The current retail price for this combo is $14,000.
    The SIAI annual premium would be ($1.25 X 140) = $175
    Let's say I will insure my combo for the $10,000 I paid for it with the NRA insurance plan. My premium would be ($1.65 X 100) = $165.

    Let's say the gun is stolen. With the SIAI plan I would receive a new K80 combo; under the NRA plan I would receive $10,000 and I would have to either make up the difference or find a suitable replacement for the $10,000. Based on the SIAI premium being only $10 per year more I opted for the full replacement value of a new gun.

    You'll need to perform your own analysis to see which approach will work best for your circumstances. You'll need to get current premium rates as well.

    Finally you'll want to know the specifics of coverage of your policy. I recommend looking at the policy to make sure you understand what coverage exists within the policy. Don't rely on the insurance agent to tell you the circumstances in which your gun is covered. I found out in a few cases that what I was told by the agent wasn't what the actual policy covered.

    I'm not an insurance agent just a consumer like you. I know there are some insurance agents on this site so if they see a flaw in my analysis please let me know. Policy rates and coverages vary and can change over time, so take the time to understand what coverages your getting and what rates you're paying.

    BTW, Sportsman Insurance Agency, Inc is SIAI but I wasn't clear if you understood this based on your post.

    Good luck!
     
  3. Easystreet

    Easystreet Well-Known Member

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    Claycruncher,

    That was a good response you wrote. Let me make the case for purchasing the NRA sponsored insurance. It has been several years since I researched this, but as I recall, this is how it was..... and presumably still is.

    The NRA insurance does NOT require that the insured party submit a list of their guns and serial numbers. You simply purchase an AMOUNT of insurance to cover your guns to whatever extent you want. You could have $30,000 dollars worth of guns but if all you wanted was $10,000 in coverage, then that's all you would have to purchase. Further, you don't have to specify which guns are insured with that $10,000. If you had 3 guns stolen worth a total of $6,000 then you could collect the full $6,000 even though you didn't have to specify which 3 guns were covered out of your entire collection. BTW, if a gun is stolen, then you WILL have to provide the serial number and description at that time. Otherwise, no list is required.

    There is a stipulation that expensive guns (over $2,500) must be listed separately in order to receive coverage over and above the $2,500 limit. But, if you are like me, I don't own any gun that's worth more than $2,500 so I don't have to list anything separately.

    If you had one expensive gun (say $8,000), then you could insure it for the full $8K value (if you want) and then have a separate amount to cover your remaining guns.

    Since my collection of guns does not include any expensive guns, and since I didn't want to register my guns with an insurance company, I chose the NRA insurance. BTW, NRA covers the first $1,000 of gun insurance and my homeowners policy covers another $2,500 of gun insurance.

    Easystreet
     
  4. tom berry

    tom berry Active Member

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    Location:
    Winterset, IA
    Easystreet,

    I'm not saying you're wrong about your current gun coverage as I don't know how your policy reads, but a typical HO policy will cover firearms to the limit of your personal property coverage for certain named perils. Then there is typically a limitation for theft of firearms of $2,500. However, a typical HO policy also only provides Actual Cash Value rather than replacement cost.

    Tom
     
  5. Easystreet

    Easystreet Well-Known Member

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    I'm sure that my Homeowner's Insurance won't cover more than $2,500 in firearms theft (without a rider), but I'm not so sure about the coverage for other perils such as fire. My gun insurance policy covers against fire, theft, etc.

    As for Actual Cash Value, I don't have a problem with that method of insurance. The way I see it, if my gun has an actual cash value of say $1,500 why should I expect to get more than that out of it if the gun gets stolen? If my 6 year old pickup truck gets stolen or totaled in a wreck, the insurance company doesn't buy me a new truck. They just pay me the value of the truck that was stolen or wrecked....... and that's the way it should be, IMO.

    Fortunately for us gun owners, guns tend to hold their values pretty well so there shouldn't be a big difference between actual cash value and replacement cost on most well cared for guns.

    Easystreet
     
  6. 1oz

    1oz Member

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    Location:
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    Yep coverage is 1.25 per 100 . Krieghoff people referred me to this and my home owners will not insure to fully cover even with an additional policy for jewelry and guns. Sportsman looked nice incase you dropped the gun they would cover for custom stock or repair if needed an had this on the custom policy .Sounds like something worth looking into if you are shooting a high end gun. Would enjoy hearing more good or bad .Thanks guys,
    Jim
     
  7. claycruncher

    claycruncher TS Member

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    Easystreet: thanks for your perspective. In your case since all of your guns are not valued at more than $2,500 each and the policy you describe allows for "bulk" coverage it would seem to meet your circumstances better than the SIAI coverage. However when you point out that a higher end gun valued at $8,000 requires itemization then, in that case, the SIAI policy maybe a better value for the reasons I described above.

    Actually, depending on the "mix" of your gun collection, a combination of coverage utilizing the SIAI policy for any high end guns and the NRA coverage for "bulk" coverage for the lesser valued guns might be the best all around solution. I have a number of K80 combos I insure with SIAI and a number of hunting guns that have limited coverage from my homeowners policy. As pointed out the homeowners only covers up to $2,500 total without a rider. It's been a couple of years since I've checked the rider's cost per $100 insured but it was $2.25 last I checked (State Farm). The NRA policy, if it is still $1.65/$100 would be much better value than the Homeowners rider.

    Regarding actual cash value, that's a personal choice each person needs to make. If I lost one of my Rem 1100 pheasant guns I wouldn't have a problem with actual cash value. On the other hand if the annual premium difference is $10 and that provides me with full replacement value (for example a new K80 combo; $14,000 value per my example above) instead of $10,000 cash and it's up to me to find a suitable replacement and/or make up a cash difference, the $10 difference in premium is a good economic decision yielding better coverage, IMHO.

    As I mentioned above, an important issue is to truly understand what is covered by the policy. As 1oz pointed out the SIAI covers damage if the gun is knocked over in the gun rack. I know my homeowners rider did not cover that type of damage. The SIAI policy covers all losses except one: if the gun is stolen from an UNLOCKED vehicle it is not covered. One consideration is if you ship your guns for service, etc.with any frequency. The SIAI policy covers the gun while in transit. I ship my K80's to Ottsville periodically for service and UPS insurance is quite expensive when insuring a $15,000 combo. This policy saves me these insurance costs further lowering my actual cost of coverage.

    As I said earlier each person needs to evaluate what type of coverage best fits their circumstances. Actually I'm going to look into some of the NRA coverage based on Easystreet's description to get some "bulk" coverage on my non-high end guns. Thanks for the info!
     
  8. 1oz

    1oz Member

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    Location:
    VA
    Claycruncher,

    the shipping part is what also caught my attention . With shipping the gun around for new wood twice in 2 years sending to Krieghoff for annuals . after paying for shipping insurance i could have paided for the policy for a year . To me Sportsman Insurance looks like a great deal on custom guns.

    Thanks,
    Jim
     
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