Cameras Form
April 6, 2015
Summary: Photography is a popular hobby and cameras and gear can be expensive. A hobby photographer may have several cameras with multiple lens, tripods, filters, video cameras, and other gear. Like other specialty items, an inland marine form provides broader coverage tailored to the specific items. The ISO form PM 00 13 is specifically developed to provide coverage for cameras and other equipment.
Topics covered:
Introduction
Property covered
Property not covered
Perils
Deductible
Like other inland marine forms, the form allows the insured to schedule described camera equipment for specified amounts. As always, an accurate description of the items and an accurate value are important. Wear makes a difference; mint quality equipment is much more valuable than that worn by use or age.
A. Property Covered
We cover the property insured under this policy while it is anywhere in the world.
1. Scheduled And Unscheduled Cameras
We cover scheduled and unscheduled cameras only if an amount of insurance and premium is shown for that property in the Schedule above.
The amount of insurance shown for such property is limited by Paragraph D.1. Loss Settlement in Common Policy Provisions Form PM 00 01.
Cameras include but are not limited to:
a. Analog and digital motion and still cameras;
b. Projection equipment such as movie, overhead, slide and multi-media projectors;
c. Sound equipment which is portable and related to the recording, projection, reproduction and operation of motion or still pictures;
d. Binoculars, telescopes, microscopes and the like which may be used with cameras or photographic equipment;
e. Compact discs, digital video discs, diskettes, film, tapes used with photographic
and projection equipment; and
f. Related photographic accessories and equipment.
2. Newly Acquired Property
We cover newly acquired cameras subject to the following:
a. The limit for this coverage is 25% of the amount of insurance for cameras or $10,000, whichever is less; and
b. You agree to report to us such newly acquired property within 30 days of when you acquire it and pay an additional premium from that date.
If you fail to do so, coverage will cease automatically 30 days after you acquired the
property or at the end of the policy period, whichever occurs first.
Analysis
Like most personal property coverages, this form covers scheduled property while it is anywhere in the world as long as it is shown on the schedule. The insured can travel with his equipment and the coverage follows. This is important as many individuals take their photographic equipment traveling with them.
Also important is what is included under the category of cameras; the form is not limited to cameras and video equipment. Included under the coverage is projection equipment including multi-media projectors; overhead and slide projectors; sound equipment; telescopes; binoculars; and microscopes that may be used with photographic equipment; compact discs; video discs; tapes used with photographic and projection equipment; and related accessories that could include bags, lenses, filters, tripods, cables, and other equipment. With so many people making videos of themselves and others, and backyard astronomers taking photos as well, it is important to be aware of the categories covered and check with insureds for equipment beyond the cameras that can be covered. Property not specifically scheduled may be covered under a blanket amount.
The loss settlement conditions that apply appear in the Common Policy Provisions, PM 00 01, section D.1. The scheduled form has no settlement provisions; it is designed to identify specific property and what the agreed amounts are and to be paired with the common provisions form.
Section D.1 of the Common Policy Provisions form states that the value scheduled is not an agreed upon amount but that the value will be determined at the time of loss. In event of a loss, no more than the lesser of four amounts will be paid: the actual cash value of the article at the time of loss, the amount for which the article could be reasonably repaired to its condition immediately before the loss, the lesser of the amount for which the article could be reasonably replaced with one substantially similar to it, or the agreed value of the item. This allows the carrier to return the insured to his pre-loss condition at the lowest cost to the carrier, but still providing proper indemnity. It is important to make this clear to the insured—just because equipment is scheduled with an assigned dollar value does not mean that is what the insured will get in the event the equipment or part of the equipment is damaged or lost. Carriers may be able to replace equipment at less than retail cost, and if an exact duplicate or substantially identical article can be gotten at such a price, the carrier will do so.
Newly acquired property is settled at 25 percent of the total amount of insurance or $10,000, whichever is less. This is similar to the provisions of the PM 00 10, Agreed Value Loss Settlement form. In this form property must be reported within thirty days of acquisition, and premium must be paid from that date. If the acquisition is not reported within that time period, then coverage ceases thirty dates after the acquisition or at the end of the policy period, whichever is first.
B. Property Not Covered
We do not cover:
1. Aerial and radar cameras;
2. Coin or token operated cameras;
3. Television cameras used for business purposes;
4. Cameras and related property for account of dealers or manufacturers;
5. Accessories and equipment related to property described in 1. through 4. above; and
6. Contraband, or property in the course of illegal transportation or trade.
Analysis
Property not covered is short and sweet. Aerial and radar cameras, coin or token operated cameras, and television or other cameras used for business or the property of dealers or manufacturers and their accessories are excluded. Most of these items are often used in business; coin operated cameras are usually found at tourist sites and overlooks. While such business uses, and property being sold by dealers or manufacturers, is excluded, there is no indication that the use of the equipment in the insured's business of wedding photography is excluded. Looking back at the exclusions listed in the Common Policy Provisions form, there is no exclusion for same either. So, if an insured is photographing a wedding or other event for pay and his equipment is damaged, there is coverage for the equipment.
Of interest is the exclusion for aerial cameras; with the popularity of drones and cameras that can be attached, as the form reads currently cameras mounted on drones would not be covered. This may change as drones become more and more popular and common. As always contraband or property in the course of illegal transportation or trade is excluded.
C. Perils Insured Against
We insure against risk of direct physical loss to covered property.
We do not insure loss caused by:
1. Wear and tear, deterioration, inherent vice or any quality in property that causes it to damage or destroy itself; or
2. Insects or vermin.
Analysis
This is an open perils form, so only what is specifically excluded is not covered. Broad coverage is provided; only wear and tear, deterioration, or inherent vice is excluded, as is damage by insects or vermin. If the insured drops his camera that is covered, as that is not really wear and tear, it is a sudden accident.
D. Deductible
We will pay only that part of the total of all loss payable under this policy that exceeds the deductible amount shown in the Declarations.
Analysis
The form has a standard deductible clause. A loss is not paid until it is over the amount of the deductible listed on the policy.