Notes regarding equipment
Equipment Sums Insured
The equipment sum insured should reflect the total brand-new replacement value of all your radio equipment. The insurance is intended to put you back in the position you would have been, prior to the loss/claim.
Whilst you may have equipment, which is several years old, and may no longer be manufactured, the sum insured should be sufficient to cover the cost of repair, if possible, or to replace your equipment with an item, as close to the original specification as possible. If the sum insured is inadequate to reflect the replacement value of all your radio equipment, you will be under-insured, and insurers have the right to reduce the value of any claim settlement in proportion to the amount of under insurance. This is known as “Average” and applies to most insurance policies covering property/assets.
Your equipment is insured for a sum of £10,000 but the actual cost of replacing all your radio equipment is £16,000.
Whilst setting up your equipment for a field day, someone places an amplifier, temporarily, on the ground whilst getting additional equipment from their vehicle. Before the amplifier can be placed on a table, someone accidentally reverses their car over the amplifier causing catastrophic damage. The amplifier cannot be repaired and needs to be replaced. A new amplifier costs, say, £5000. The claim will be settled as follows:
Sum insured on the policy £10,000 x £5,000 (cost of the new amplifier) = £3,125 claim settlement.
The correct sum insured £16,000
Even though the sum insured of £10,000 is more than the cost of replacing the damaged item, you have only purchased a proportion of the amount of insurance required to cover all your equipment and this means that the insurer will only pay the same proportion of any claim.
There may be occasions when you are unable to purchase equivalent brand-new items of equipment. For example, vintage or ex-military equipment and in these cases, you may feel that to insure these items based on their second-hand value is more appropriate. Subject to agreement by insurers, such items can be insured based on their second-hand value, but this must be agreed at the time of arranging the insurance.
Trailers and Trailer/Towers
- Trailers and trailer/towers should be included as part of the total equipment sum insured.
- Trailers and trailer/towers, owned personally, cannot be insured whilst attached to or being towed by a towing vehicle and you should contact your motor insurer if this cover is required.
- If the trailer has been modified, please provide full details.
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