Several years ago, one of my columns dealt with the theft of a large number of music CDs from an auto and the issue of whether the insured's homeowners or auto policy should respond to the loss. The ISO PAP and HO policy language was confusing, the scope of coverage was unclear, and the two forms didn't coordinate well on the issue. The situation was made even more painful by the adjusters' and forms writers' failure to address the greatest loss resulting from the theft–the emotional blow suffered by a music lover deprived of a lifeline to sanity: the tunes!

Many times an otherwise tedious drive has been rendered more bearable by “Paradise by the Dashboard Lights” exploding from my car's speakers, or by singing the blues along with Stevie Ray Vaughn or Buddy Guy. One reason my buddies and I so enjoyed that scene in the “Wayne's World” movie when the characters sang “Bohemian Rhapsody” in the car was that we had done the same thing when Queen originally released the song years earlier. My college roommate's girlfriend even drove a Pacer!

But, alas, those who earn their living in the ISO forms dungeons evidently either have tin ears or think “tone deaf” is a rapper. Since my first plea for coverage clarification, back when Prince partied like it was 1999, property forms have not been changed to rectify the aforementioned travesty. Perhaps the forms folks thought I had described an isolated incident, of interest only to a few parrotheads.

Well, wait no more, recalcitrant ones! AC/DC's highway to hell lies before us. And proof that the-day-the-music-died is upon us comes from no less an unimpeachable source than the Washington Post. To quote from an April 16 article by Del Quinton Wilber:

“The burglar visited every room of Sara Scalenghe's Northwest Washington apartment, stealing an expensive digital camera and a gold necklace passed down from her grandmother. But Scalenghe did not begin seething until she confirmed her biggest fear: Her new iPod had been swiped, too. The digital music player held 50 favorite songs, ranging from Mozart selections to Italian rap. The device also contained thoughts on a looming dissertation and recorded conversations with friends. For Scalenghe, her privacy, as well as her home, was invaded. 'I know it sounds silly, but it changed everything, I was really upset,' said the 34-year-old graduate student. 'I can't explain it, but it hurt.'”

The same article reported that another woman had her laptop and iPod stolen. Between the two devices, she lost 3,000 songs she had either purchased or laboriously harvested from her CD collection. One other theft victim, who lost 2,000 songs when his iPod was stolen, particularly mourned the time he had invested in collecting them. “This relationship with my iPod was built on downloading all the music. The time and effort of developing a library makes you very connected with the library. It took the better part of two months. Now, I have to start all over again.”

And for those who think I exaggerate the emotional wounds inflicted by such crimes, heed well the words of a noted expert cited in the Post article:

“Everybody has a lot of memories they associate with music, and musical taste is usually very important to people,” said Anita Boss, a forensic psychologist in Alexandria, Va., who has counseled crime victims. “You actually have a piece of identity theft here. Anytime something is stolen that is so personal, victims are going to have a reaction like that. It's not the same as stealing a coat.”

Preach on, sister!

Now consider the situation we face as agents representing theft victims. Depending upon the total value of the items stolen, we may or may not face a claim below the policy deductible. If the total exceeds the deductible–since all three of the thefts cited in the Post article were from residences–the homeowners policy clearly will provide coverage. If the thieves had taken the same items from a vehicle, the homeowners policy still should respond in most cases, assuming the stolen devices were not, as stated in the “Property Not Covered” section of the HO form, “Electronic apparatus and accessories designed to be operated solely by power from the electrical system of the 'motor vehicle.' Accessories include antennas, tapes, wires, records, discs or other media that can be used with any apparatus described above.” The PAP should pick up any musical device fitting the exclusionary language, subject to the policy's deductible provisions.

If at the time of loss the insured uses devices in the auto that otherwise are covered by the homeowners policy–powering the items with one of those now-ubiquitous power adapters (iPods and laptops have frustratingly short battery life) plugged into the auto's electrical system–the internal HO coverage limit still applies: “$1,500 on electronic apparatus and accessories, while in or upon a 'motor vehicle,' but only if the apparatus is equipped to be operated by power from the 'motor vehicle's' electrical system while still capable of being operated by other power sources.”

But even if we find coverage for the devices themselves under the forms language, we still fall short of providing help for the greater loss suffered by the insured-the pain and anguish of losing memories, music and invested time and effort. If we as agents truly are to counsel our clients and offer options for protecting their property, it becomes, in the words of the Moody Blues, a question of balance.

The scenarios described in the Washington Post article, which are growing in frequency and severity, as electronic gadgets increasingly become part of our lives, once again reveal the importance of being more than mere sellers of policies. We must follow the Yardbirds' advice to see every account not merely as one-dimensional (the need for insurance coverage) but “over, under, sideways, down.” In other words, forget Jim Dandy-it's risk management to the rescue!

In all of the above examples, one small bit of advice would have served as a bridge over troubled waters. Whenever you store something of value on a digital device that can be lost in a New York minute–especially if you spend a significant amount of time doing so, heed the wisdom of Steely Dan and go back, Jack, and do it again. In other words, make a backup. With the plethora of flash drives, portable hard drives and online file-storage options now available, an insured need never risk losing both a device and its contents.

Do you include such recommendation in every coverage conversation you have with an insured? And I'm not just talking about music exposures. That original loss described in the Post included a digital camera, too. And what about all the personal photo images the owner may have left in her camera or laptop? I wonder if she had been advised to get an appraisal on her grandmother's gold necklace to determine if the homeowners' internal limit on jewelry was sufficient, or if she needed an endorsement or floater.

To paraphrase Billy Joel, if we're in a risk-management state of mind, we can turn our insureds' highway to hell into a stairway to heaven. With you by their side, providing not only coverage but also expertise and effective counsel, they no longer need fear that a petty thief will leave them “blue on black.”

Tommy will be proven right after all. Listening to you, they'll get the music.

Special Reports /

Policy Issues: When the music's over: Addressing risks like iPod theft

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