Guitar value calculated by lump sum US$ 79/cu ft

[Eukalyptus]

Jurisdiction

New York

My Guitar (replacement value US$ 400) got damaged during relocation and the moving insurance is now only willing to pay for US$ 121 reffering to the guitar's size of approx. 1.5 cu ft.
On my request to cover the full amount, they quoted their T&C:

" LUMP SUM policy requires you to list out individual items that have a replacement value of US$ 500 and above on the right side table of the form. All other items are covered by a blanket policy where the insurance company calculates each cubic foot to be worth US$79.00 for replacement value."

Can they calculate the value of objects by sq ft?
To me that doesn't make sense. What if something very small gets broken?

 

[army judge]

It may not make sense to you, but it's been that way for decades.
You can buy insurance from other sources.

Very few insurance companies will pay the replacement value on items, usually you receive the actual or present value of an item, but the insurance coverage you speak about is available for purchase at a hefty fee.

 

[adjusterjack]

Can they calculate the value of objects by sq ft?

Yes. The T&C is the contract you agreed to when you hired them (whether you read it or not).

What if something very small gets broken?

There are 144 Sq Inches in a Sq Foot. Divide $79 by 144 and you get 54.8 cents per Sq Inch. Multiply 54.8 cents by the number of Sq Inches of the small object.

 

[Michael Wechsler]

That's a painful lesson. As stated above, it's the agreement you made without realizing you made it as it seems you didn't completely read what you signed. I remember upgrading my guitar many years ago and it cost me around $650 or so. The value to a musician of their instrument is obviously not what is paid but it is a measure of value generally. Given wear and tear and what you could sell a used guitar for at a music store at least it's not catastrophic recovery for damage, although it's painful. Good luck to you and hopefully it can be repaired. Stevie Ray Vaughan's guitar looked like a beat up piece of junk that you couldn't get more than a few dollars for in a pawn shop. But the sound he could get out of that instrument was priceless...