Insurance

[ugimports]

You guys are probably all smarter than me regarding your insurance. I was griping about co-insurance in off topic. In case you guys don't ever get over there and want to read the discussion:

http://calguns.net/calgunforum/showthread.php?t=1308320

It was informative for me and sounds like a few respondents are in the industry.

My PSA for today is READ YOUR POLICIES and make sure you understand Co-Insurance!! I got hosed because I didn't understand it.

Hopefully you guys aren't in the same boat as me (or don't have to find out like I did).

[acespawnshop]

I believe pawn shops are a little different. We just did our yearly update for insurance. I can get people the name of the place who does ours if you PM me. We're insured for pawned guns and non pawned guns separately. It's a little different but may not hurt to check if you can save some money.

[therealnickb]

I believe pawn shops are a little different. We just did our yearly update for insurance. I can get people the name of the place who does ours if you PM me. We're insured for pawned guns and non pawned guns separately. It's a little different but may not hurt to check if you can save some money.

OP is offering good advice. Ask your agent what your co-insurance % is. (Unless you carry higher limits than your inventory will ever be. Then it doesn't matter.)

Pawn shops may be different, but the terms of your policy may be standard. It's good to know.

[acespawnshop]

Yes, always good advice from UG. I'll second this as well. Double check don't just make a call and take an insurance mans word for what you have. Read your policy and make sure you know what you are covered for and what isn't. I've had to ditch bad insurance guys before. The current one is good tho ;-)

[OCArmory]

Thanks for the heads up. I never even considered this. Calling my insurance guy today

[ugimports]

Thanks for the heads up. I never even considered this. Calling my insurance guy today

Give him some examples of scenarios to make sure you understand how things will pay out. Something like:
1) Normal business property coverage is 100k
2) You get a shipment of some new whiz bang SCARs that put you temporarily at 125k
3) a loss happens and you lose 25k of inventory

What will they pay out? Similar scenario if you have different coverage (as I did) for other peoples stuff in DROS limbo, be it PPTs, Buds Transfers, Gunbroker transfers, etc..

You might be over-insured and in good shape -- I wasn't

[OCArmory]

I have Chiarello as well through another broker. Waiting for a call back. Looking at my policy I have 90% co insurance but I don't understand what that means. might be changing insurance companies if they aren't straight forward.

[ugimports]

You might want to look at these guys (who I am investigating) for the firearms coverage: https://collectinsure.com/

They don't do liability, but so far no co-insurance requirements. I'm still getting more info, but I may do a different company for inventory then I do for my general liability and maybe leave that with Chiarello.

[OCArmory]

I have them for my collection at home. Their policy looked good. I just finished with my insurance agent and have come to the conclusion everyone is out to screw us. I have the same type of policy you do but with a 90% clause. Still ridiculous that I pay for an amount of coverage and they have found a way to sneakily not pay what is agreed to.

[therealnickb]

I have them for my collection at home. Their policy looked good. I just finished with my insurance agent and have come to the conclusion everyone is out to screw us. I have the same type of policy you do but with a 90% clause. Still ridiculous that I pay for an amount of coverage and they have found a way to sneakily not pay what is agreed to.

No, it's just a small imposition to be sure you buy enough coverage.

Rates are based upon you buying limits that match your values. 100% co-ins rates are the lowest, but leave you with no room for error. 80% rates are more forgiving but cost more per $100 of insured values.

I'm sure your agent explained it, but co-ins will never be a problem if you keep your property limits up to date. 90% gives you some wiggle room so you don't have to be perfect.

[therealnickb]

You might want to look at these guys (who I am investigating) for the firearms coverage: https://collectinsure.com/

They don't do liability, but so far no co-insurance requirements. I'm still getting more info, but I may do a different company for inventory then I do for my general liability and maybe leave that with Chiarello.

That program looks pretty good for property.

I know you'll ask a lot of questions since you got burned, but read their form too. The brochure isn't enough.

After a quick peak, my only concern for you is the term "collectible" in their name. "Ordinary" and "collectible" aren't the same in some instances. If your business isn't mostly "collectibles" proceed with caution.

Be sure to read all the definitions, exclusions and conditions that describe what they insure and what they pay.

[ugimports]

That program looks pretty good for property.

I know you'll ask a lot of questions since you got burned, but read their form too. The brochure isn't enough.

After a quick peak, my only concern for you is the term "collectible" in their name. "Ordinary" and "collectible" aren't the same in some instances. If your business isn't mostly "collectibles" proceed with caution.

Be sure to read all the definitions, exclusions and conditions that describe what they insure and what they pay.

Agreed... I will need to make sure their definitions are clearly spelled out, but at least I've learned what to look for now. And now I know of a scenarios I can describe to them to ensure I completely understand how payouts would occur if a loss happens.