When reviewing your homeowner’s or renter’s policy, it is paramount that you determine the policy type. The reason is, a typical policy is written on a named or open peril policy, each of which is defined below:
Named-Peril Policy – A named peril policy is one which only covers those perils which are specifically listed in the policy. An example of such is the typical HO-3 policy which only covers the 16 named perils listed within. Also included is a list of exclusions which limit the coverage provided within the 16 named perils.
Open-Peril Policy – An open peril policy is one which covers all perils, unless specifically excluded within the exclusions section of the policy. A typical example would be a HO-5 policy, which covers any peril except those exclusions listed within the policy. The benefit to this policy is you don’t have to worry whether your peril is included in the 16 named perils of the HO-3, as long as it isn’t named as an exclusion, then it should be covered. HO-5 policies tend to cost more than a HO-3 policy, as their coverage is broader.
When looking to pursue coverage for your camera and equipment through your homeowner or renter insurance, it is important to make a determination between the types of coverage provided within your policy. As you will see, there are specific sections of the policy which will provide you with camera insurance coverage, while other sections cover the other exposures related to your home. The description below explains the coverages provided within your homeowner’s policy, and the highlighted sections therein identify possible areas of coverage for your camera equipment.
Section 1 – Property Coverage
Within your policy, the first section is normally reserved for property damage coverage. Within this section are those coverages for damage to your home (structure), garage or unconnected structures, personal property, and coverage for additional living expenses from a covered loss. Each of these related property damage coverages is defined below.
Coverage A – Home or Dwelling
This is the basic property damage coverage for the dwelling or the structure. The building, including the interior and exterior of the homes structure, is protected against covered losses under this coverage. Typically, you would be unable to pursue a loss to your camera equipment through this coverage however it is still important to review this section of your policy. The coverage within this subsection is determined based on the insured value of the building (The amount you insure your home for). Well see why this is important as we move through the policy.
Coverage B – Garage or Freestanding Separate Structures
An add-on to the basic property damage to your home. This coverage is for exactly what the name applies, structures which are not connected to your main dwelling. Common examples might be a unattached garage or permanent shed. You need to be weary though because a freestanding structure can be difficult to define. As with coverage A, you will not be able to pursue a loss through this coverage as it is constrained to structures and dwellings.
Coverage C – Contents or Personal Property
This section is the most relevant when discussing camera insurance. Section C covers those perils related to your personal property, both in your home as well as away
from the property. Typically this coverage is provided in the amount of 50% of the insured value of the structure; however your policy may read differently. For property that is away from the home, coverage is provided in the amount of 10% of the coverage provided by Part C, or 5% of the insured value of the structure. See the example below:
Home Value: $100,000
Part C Coverage (at premises): $50,000
Part C Coverage (off premises): $5,000
This coverage would apply to both those items which are within the residence when the loss occurs as well as away from the premise. Depending on the value of your equipment, you should be weary of losses off your property. Using the numbers above, if your camera or equipment is worth more than $5000 and experiences a covered loss while off the property, then you may not be able to recover the full value of the equipment. Remember that the coverage is based on the insured value of your home, as well as the percentage used by your insurance company for Part C coverage (read your policy or contact your agent). If you are concerned about your coverage not being enough, you may be wise to look into possibly scheduling the camera equipment to ensure its full value is covered.
Limitations in Regards to your Camera
A typical homeowner’s and renter’s policy, have limitations included which limit coverage for certain items and conditions. For instance, a typical policy only provides coverage in the amount of $2500 for jewelry (not scheduled), which is damaged or lost by a covered peril. Within these limitations, there are two specific examples which can apply to your camera equipment.
Business Property – Limit: $2500 (on premises); $250 (off premises)*
Although your business property is covered by your typical homeowner’s policy, there is a limit to the insurance company’s exposure. If you use your camera or equipment for business reasons, then this limitation could apply to a covered loss. With that being said, if you experience a covered loss on your property, then your equipment could be covered up to the amount of $2500. However, if you are on the road or away from the premises in general, then the coverage is limit to only $250. This is something you should be weary of as the definition of business property can be very vague, and even the single use of the camera for a commercial purpose can cause it to be considered business property.
Electronic Apparatus – Limit: $1000 (in and outside of vehicle)*
This limit applies for those “electronic apparatus” which are equipped to be operated by power from the electrical system of a vehicle, while still retaining it’s capacity of being operated by other sources of power. In other words, if your camera is charged in your vehicle (regularly), while still being able to be charged by another source, then it can be subject to these limits. If the property experiences a loss while in the vehicle, then special limit 10 would apply – $1000. If the property experiences a loss while outside of the vehicle or “residence premises”, then the $1000 limit would only apply if it is used in business (otherwise the full personal property limit for off premises losses would apply).
