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Multiple Gun Insurance Policies Questions?

Discussion in 'Shooting Related Threads' started by Easystreet, Feb 28, 2010.

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  1. Easystreet

    Easystreet Well-Known Member

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    Let's suppose that a shooter has homeowner's insurance, car insurance, NRA $1,000 gun insurance, and a separate gun insurance policy (limit of $10,000). Let's suppose that the homeowner's insurance policy has a limit of $2,500 on gun coverage.

    SITUATION A: Suppose that the shooter is at a shooting event and has his gun (valued at $2,500) stolen from his vehicle. Which of the above policies would cover the theft of the gun? Could the gun owner collect from more than one policy since he is obviously paying premiums for all of these policies?

    SITUATION B: Same as Situation A except that the gun is stolen from a gun rack at the shooting event. Which policies would cover the loss, and could the gun owner collect from more than one policy?

    I'm not looking for suggestions on how to keep your guns from being stolen since that's a different issue. I'm asking for knowledgeable input about collecting on various gun insurance policies if a gun should be stolen. No, I haven't had a gun stolen. I would just like to know which policy would cover what in the event that such a thing did happen and how difficult it may be to collect. Thanks.

    Easystreet
     
  2. melbournemike

    melbournemike TS Member

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    Since I live in Florida ,I didnt think insurance companies had to pay anyone anything!
     
  3. spitter

    spitter Well-Known Member TS Supporters

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    The question involves a couple more variables... for instance, are the car and home insurer the same or separate companies... The NRA coverage is typically positioned as "secondary" to other insurances.

    It also depends upon the type of coverage purchased... itemized "scheduled" coverage v. floaters (fixed amount of coverage over multiple unscheduled items)... some coverage will include a deductible, other may not...

    Sorry for the necessarily vague response,

    regards all,

    Jay
     
  4. deercreek

    deercreek Well-Known Member

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    When I had a handgun stolen from my wife's vehicle I found out real quick that the NRA insurance with membership is secondary at best---I felt they were trying to do their best to never pay a claim and that is exactly what occured. If you have auto ins that will probably cover the theft from a vehicle most of the time.
     
  5. coveybuster

    coveybuster Member

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    Easystreet, There are dozens of anwsers to your questions. It's all about how the particular policies you have are written. Some policies are designated as primary, some secondary, (but may cover any deductible you have on primary coverage). Some carry special endorsements, exclusions etc. Some vary by state or region. Read the policy provisions and then schedule an appointment with your agent about your policies. Every situation could be different. MAC
     
  6. twoatloweight

    twoatloweight Member

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    No simple answer.Generally the most specific contract pays first(primary),other are excess.For example assume you had a specific policy on your K-80,a homeowners policy and the NRA benfit.The specific police names your gun with serial number,etc.The homeowners policy says it covers "guns"you own,the NRA group certificate says it provides excess coverage for its members over all other.So,absent any odd situation,the K-80 policy would pay its limit followed by the homeowners,then the NRA certificate.All would have some provision limiting total payment to the replacement value of the gun as it is considered to be against public policy to allow profit from an insured loss.
     
  7. Easystreet

    Easystreet Well-Known Member

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    Jay (and others),

    Assume that the homeowner's policy and car insurance policy are from different companies.

    Also assume that the gun insurance policy covers numerous guns but does not specify any of them by description, serial number, or anything like that.

    Easystreet
     
  8. jbrucejr

    jbrucejr Member

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    Most car insurance only pays for automotive items taken from the car. If your radio, spare, jack, wheels are taken they pay. For non automotive contents of your vehicle like guns, cameras etc car insurance will pay nothing. Your homeowners will usually pay some amount upto a certian value (you pay your deductable) without a rider - if you have a specific rider for the items or other item specific insurance you stand a much better chance of getting more back.

    Been through this in the last year.

    JB
     
  9. BIGDON

    BIGDON Well-Known Member

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    You guys need to talk to your insurance agent more. That's who you should be talking to and get the advice that applies to your state.

    Don
     
  10. trappermike

    trappermike Well-Known Member

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    Come on BIGDON. People ask here for medical information, legal information and insurance. Some of the people on here actually think that trapshooters are smarter than doctors, lawyers and insurance professionals put together, and the advice is FREE. Probably worth what is actually paid for it. Imagine going in to court and citing trapshooters.com in your briefs.

    People, if you need medical advice, see a doctor, legal advice, see a lawyer, insurance advice, call an insurance professional or two.
     
  11. Jerseyshooter

    Jerseyshooter TS Member

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    I work for a major commercial insurance company and can give you some insight. First, regardless of how many policies you have, the TOTAL you are going to collect is going to be the amount you lost less deductible. This is to prevent moral hazard...if folks could collect 10,000 bucks for a 2500 gun, lots of them would be "stolen". Buying multiple policies with the same subject of coverage is usually a poor financial decision. It is better to buy one policy and add additional subjects of insurance (called riders) to that policy.

    Each policy will respond as respects its own terms up to a proportionally shared amount. In other words, if policy 1 covered the guns as well as policy 2, chances are they would split the loss amount after applying the largest deductible of the two policies. There are a bunch of adjustment rules about this.

    Your BEST ADVICE is to make your claim under ALL your policies and advise each insurer of all policies you have. If you have an agent, they will help you with this. If you are insured with a direct writer, I would call the company(s) you have the policies with.

    I am not in the personal insurance lines business; I do industrial property. However, I always recommend that ALL your insurance is best placed either through a single company or through an independent insurance agency. This greatly improves this type of coordination in loss situations and will greatly increase your satisfaction. In my opinion it is worth a few extra premium dollars to get this type of security.

    I also have found very little value in specialty coverages such as provided by companies represented or endorsed by groups. This would include NRA, GM, Life offered by a union, etc. These policies are usually poorly priced, poorly serviced and generaly lead to client dissatisfaction when you actually make a claim. If you need home (including the stuff in your home) and auto, then go to a local agent and get the riders you need (like jewelry, guns, furs, etc) added to the appropriate policies. Anyway, good luck with your claim RICH
     
  12. Easystreet

    Easystreet Well-Known Member

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    Yeah, you call your insurance agent and start asking questions about how to collect on your insurance policy and the first thing you know, they raise your rates or drop you because they think you are plotting to scam them out of insurance money. Imagine what they will think if you ask about the possibility of collecting on several different policies for one loss.

    I'm almost convinced that it's best to "self insure" on all except the biggest losses anyway because generally you are paying for coverage that you will never use, and if you do have occasion to use the policy, they will find some way to keep from paying the claim. After all, THEY wrote the policy.

    I've paid enough money in extra gun insurance over the past 12 to 15 years to have bought a really nice gun with it, and I've never collected a dime on it. My guess is that if I ever do have a gun stolen, each company will say that they are not responsible for paying the claim and I'll have to get a lawyer and pay him/her too to try to sort it out.

    Easystreet
     
  13. coveybuster

    coveybuster Member

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    You need to call your agent and ask if you are protected, and to what extent. Part of that premium you've been paying is for the service of your agent to anwser questions like this.
     
  14. phirel

    phirel TS Member

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    trappermike- BIGDON is a very successful insurance agent. The answer to the questions is very simple. Wait until you file a claim and then you will discover which insurance will pay, if any. Isn't it strange how much information we will gather about a gun before we buy one. But, we will pay much more for insurance and really have no idea what we are buying. My insurance agent sells State Farm insurance. When I ask him about different policies he always recommends State Farm. Is that just a coincidence?

    Pat Ireland
     
  15. BIGDON

    BIGDON Well-Known Member

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    easystreet: What you really need to do is shop around for an agent that you can trustand I would recommend a independant(one who represents many companies). With your current attitude he/she might not want you for a client thou as you appear to have a chip on your shoulder.

    Don
     
  16. tom berry

    tom berry Active Member

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    Pat, I hope you were trying to interject some humor into this thread.

    I don't know any SF agents that can sell anything other than SF products.

    Easystreet, I'm with Don, get a good independent agent and ask these questions. You've already received several correct answers from Jersy and Brucejr. I wouldn't be worried about a rate increase for asking questions.

    Tom
     
  17. Easystreet

    Easystreet Well-Known Member

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    BIGDON,

    I suppose that anyone who doesn't want to get screwed by insurance companies is considered to "have a chip on his shoulder" by insurance agents.?????

    And you appear to be a "know it all blowhard", but I've refrained from saying so until now.

    Easystreet
     
  18. melbournemike

    melbournemike TS Member

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    It appears I was right,without a roomfull of Lawyers they wont pay anyone anything!
     
  19. Easystreet

    Easystreet Well-Known Member

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    I called my independent insurance agent today and here is what I was told. Keep in mind that this is what the agent SAID. Whether it's true or not or whether the insurance company would actually pay without a big hassle remains to be seen.

    1. Firearms stolen from your vehicle would not be covered under the car insurance, but rather under the homeowner's insurance. Or it could be covered under any extra gun insurance policy (such as NRA) that you may have.

    2. There is no particular order or preference for which company to file your stolen guns claim with if you have coverage from several different policies. File it with whichever one that will pay you the most with the least deductible. I suppose that if one policy doesn't cover it all, you could file with another policy to pay for the remainder (although I don't recall the agent saying those specific words).

    3. Although my homeowner's policy has a limit of $2,000 on firearms, that is the limit for THEFT of firearms. If I have say $10,000 worth of guns burn up in a fire in my home, then that would be covered (minus the $500 deductible) under the CONTENTS of my homeowner's policy up to the limits (about $150,000) which I have on my entire contents coverage.

    So there you have it. I will now evaluate the necessity of keeping or increasing or decreasing my gun insurance coverage based on how the above information applies to my personal situation. Thanks for all the comments....... except of course, those from the blowhard insurance agent with a chip on his shoulder.

    Easystreet
     
  20. trappermike

    trappermike Well-Known Member

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    Pat, no disrespect to BIGDON intended at all. My comment was for all of the people who come onto trapshooters for technical advice. I would suggest a direct call to BIGDON for an expert opinion!! Or maybe a couple of competing agents.

    Mike
     
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