Piano Consigned for Sale Is Stolen

December 16, 2013

We have an insured that has a piano. Several years ago he contracted with a piano dealer to sell his piano on consignment in the dealer's store. The dealer was later evicted, and the insured finally found the new location where the dealer reopened his shop. When the insured approached the dealer at his new location, the dealer told the insured that he does not know what happened to his piano and then walked away from him and would not discuss it further. The insured notified the local police and filed a theft claim on his homeowners insurance. The police said they have had several similar reports on this dealer and there is a hearing set for this theft claim. We reported this theft claim to the homeowners insurance carrier and the carrier is now saying that they think this is a contract dispute rather than a theft claim. My argument is that this can be a contract dispute and a theft claim. If the dealer does not get a sale premium for the piano owner for the piano and then does not return the piano, he has stolen the piano. What is your opinion on this claim?

Pennsylvania Subscriber

When the policy does not define a term, courts refer to a standard desk reference. Merriam-Webster Online defines “theft” as “the felonious taking and removing of personal property with intent to deprive the rightful owner of it.” While the insured voluntarily gave the piano to the dealer to sell, the dealer has not returned the piano nor paid the insured for the value of the piano. The piano is therefore stolen and should be covered.