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Camera equipment buying woes


alexander_c1

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<p>Hi everyone. Me again.</p>

<p>So the time has come. Next week I am heading to B&H to make a "major" purchase (major to me, not to some lol). Without going into too much detail when I round up the numbers of the purchase I am overbudget by $500 bucks. In an effort to keep cost down I pose this question...do I really have to get insurance for everything?</p>

<p>Another member of this site asked a question similar to mine and the responses went mostly like this: well...if you are clumsy and drop stuff then get it. If you are not clumsy and take extra care of your gear then not necessary. I certainly fit into the NOT CLUMSY category. I have had my 40D, 3 lenses and 580EX II for a little over a year and not once have I dropped or put my gear into a situation where it might get damaged. Matter of fact...when I have been to parties and bring my gear since I drink when I notice I am a little tipsy I put my gear away. Don't like to touch it in fear of dropping it or something.</p>

<p>Here is what I am getting:<br>

Canon EOS 5D Mark II Digital Camera Kit with Canon 24-105mm f/4L IS USM AF Lens<br>

Canon Zoom Telephoto EF 100-400mm f/4.5-5.6L IS (Image Stabilizer) USM Autofocus Lens<br>

Canon Normal EF 50mm f/1.2L USM Autofocus Lens<br>

Canon 580EX II Speedlite TTL Shoe Mount Flash</p>

<p>I'm getting other accesories which I did not list because insurance is not offered. 3 year insurance for the kit is $343. For each lens it's $179 and for the flash it's 71. Now, do you agree with me? Should I opt for the insurance only on the kit and not get it for the rest of the gear? This is so mind boggling to me because I ALWAYS PREACH insure everything you buy. I do it with my friends and family all the time. Please share your thoughts.</p>

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<p>One hates to think you'd personally be the statistical exception, Alexander... but just keep in mind that there's only <em>one</em> reason that there is such insurance for sale in thre first place: the people selling it find it to be highly profitable to do so. The insurance provider makes lots of money, the store gets a nice piece of it, and the sales person usually makes more commission on the insurance than they do on the hardware itself.<br /><br />I'm not drawing a hard line and saying it's not worth it for anyone, but it's quite clear that the policies are priced in a way that hugely favors the seller (which is there prerogative, of course). Me? I'd take the same cash, put it aside, and keep putting $20 more on top of it every week instead of buying two fattening lunches. Before you know it, you'll have the cash it would cost to repair/replace something you drop, or have enough to add a whole new lens to the rig later, if your not-dropping-things luck holds out.</p>
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<p>You all have valid points. It's scary for some buying all this gear and spending so much money and not being "covered" for the what ifs.</p>

<p>Matt - to your point you are so right. They will make a hefty commision on me if I insure all this gear. I asked one of the reps if I would get any sort of break when spending this amount of money and the answer was "not really" so I thought...hummm is it really worth buyin up all this insurance.</p>

<p>Bob - I called my homeowners insurance agent and asked her about this. She told me that theft of ANY item in my home is included so if this ever happend I am covered (knock on wood that it won't). But, she wasn't sure about accidental damage. She said she will call me back by the end of the day with an answer. </p>

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<p>I purchased an Inland Marine Policy through Nationwide. It is a seperate policy with no deductables and with replacement amounts. This type policy only cost about $1.00 per hundred of value/ $10 per thousand.<br>

Ten thousand dollars worth of equipment at replacement value only cost me $104.00 a year.<br>

This is a non-pro / hobby cost. It is more if you claim to be a professional.<br>

Last April, a friend of mine dropped his brand new 5d mk ii into four feet of water. With the flash and grip he was looking at $3,000.00 dollars down the drink. BUT, he had insurance.<br>

He had never dropped any before either.<br>

Best Wishes</p>

 

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<p>I bought the insurance from B&H on my 500mm. A year later, I took out a "personal item" policy through Travelers on all my equipment - $0 deductible covered everything and anything that could happen to it - literally - and the insurance from Travelers was one third of the cost of the B&H one. So more coverage on ALL gear was the same cost for three years vs. cost of the one lens insured through B&H. I have never used mine, but it feels good to know I have it. It was also way cheaper than the rate through the different photographic societies which offer it too. They price it for like $7.00 for each $100 or something like that. I shopped it around and the personal item policy was by far the best deal. </p>
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<p>If I can get this into my homeowner's or any other policy my insurance agent finds me looks like I'll be saving $750 instead of $500 on this purchase alone. Only if they can give me a break on the taxes. Maybe that's asking for too much :-)</p>

<p>I am so glad I posted on here before spending all that money on the store insurance. I will report back to you all on my progress.</p>

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<p>Insurance is an outdated concept. It's really designed to prey on people's fears that any "loss" would be catastrophic, and that insurance can replace your losses for "free". This is ridiculous, since your premiums will pay to cover your own losses and then some. Insurance companies are set up like casinos and stock markets. The house always wins. In the stock market your broker gets a commission and the CEOs get their bonuses whether you win money or lose it. No matter whether you have an accident with your particular cameras or not, statistically the insurance company will come out ahead of the photographers. For every photographer that has his gear replaced by the insurance, there are 10 others that never have a reason to file a claim at all.</p>

<p>My insurance policy would be to take all the money you would otherwise spend on premiums (in the neighborhood of $800 by the sound of it) and spend it on scratch lotto tickets. I believe your chances of having a payoff will be much higher.</p>

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<p>Hal: There's nothing outdated about the concept of insurance. What's happened is that people have started to think of insurance as a form of financing for their regular expenses. This is why the health care debate is so nonsensical. <br /><br />For a lot of photographers, having a $3,000 body and a $5,000 lens stolen or destroyed <em>would</em> be catastrophic. It's also not a common occurance. And that's exactly what insurance should be for. Not for replacing a $100 worn-out camera bag that you got wet and now can't use because you're worried about getting fungus in your lenses. <br /><br /><em>... statistically the insurance company will come out ahead of the photographers. For every photographer that has his gear replaced by the insurance, there are 10 others that never have a reason to file a claim at all.</em><br /><br />You make that sound like a bad thing. Why would you want to do business with an insurance company that's on shaky grounds, financially? I <em>want</em> my insurance company to make money, and I want the people that run it to be successful. Why? Because I want them to have the deep pockets to cover lots of losses when something bad happens. I want their agents to make enough money that they're not barely getting by and thus being unscrupulous in how they handle their business. <br /><br />If everyone could just be honest about the math on all sides of such transactions, and not resent the fact that service providers <em>provide those services to make money</em>, then everything would be a lot easier. A photographer shouldn't have to apologize to a bride for charging what they charge to shoot a wedding, since part of that fee goes to make sure there are backup cameras, flashes, assistants, transportation and all the rest. And insurance in case of disaster.</p>
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<p>Alexander,</p>

<p>Order it all from a big supplier out of State and save the sales tax, on all that gear it adds up. Or order from B&H and ship to somebody you know out of State, then get them to ship it back.</p>

<p>I just got a new $3,000 laptop, I was in Florida and if I got it from the local store I had to pay tax, I ordered it from B&H and it came with free shipping and no tax, saved hundreds.</p>

<p>Re the insurance, get it on a credit card, that often has insurance included to an extent, and find out about adding to your home insurance (unless you do pro work, if you do then you need to have separate insurance that includes liability cover).</p>

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<blockquote>

<p>...there's only <em>one</em> reason that there is such insurance for sale in thre first place: the people selling it find it to be highly profitable to do so.</p>

</blockquote>

<p>To one degree or another can't the same be said about any item a retailer sells? Comparing homeowner's insurance to the extended coverage from a company like <a href="http://sagemaxprotectionplan.com/">Sagemax </a> may not be comparing apples to apples. You need to know if your homeowner's coverage includes accidents, water damage and the like or just theft.</p>

<p>You may also want to check your credit card -- some cards add additional coverage to one degree or another. Like any product we sell, insurance isn't for everyone and we don't recommend it to everyone, but for those who want/need it, it is available.</p>

<p>Henry Posner<br /> <strong>B&H Photo-Video</strong></p>

 

Henry Posner

B&H Photo-Video

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<p>Henry: remember, I didn't say that like it was bad thing. Just pointing out that it's a service, just like any other, being <em>sold</em> by a retailer. It has value for some people, and less so for others. Just depends on the whole picture (which, as you've just pointed out, includes lots of other possible variables).</p>
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<p>Hi Henry. Yes, I agree with you. Although it will be nice for me to save this chunk of change I need to make sure I have some kind of protection. I have been planning/saving for a very long time to make this purchase and I want to make sure I do the right thing. If I can't add replacement or damage protection through my homeowner's I will definately consider adding insurance AT LEAST on the kit. As I stated before I am $500 overbudget by adding insurance on all items.</p>

<p>Thanks again to you all for commenting on this thread.</p>

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<p>All B&H prices<br>

<br /> Canon EOS 5D Mark II Digital Camera Kit with Canon 24-105mm f/4L IS USM AF Lens<br>

$3,499.95<br>

Canon Zoom Telephoto EF 100-400mm f/4.5-5.6L IS (Image Stabilizer) USM Autofocus Lens<br>

$1,679.95<br>

Canon Normal EF 50mm f/1.2L USM Autofocus Lens<br>

$1,599.00<br>

Canon 580EX II Speedlite TTL Shoe Mount Flash<br>

$420.00</p>

<p>Total $7,198.90</p>

<p>Sales tax at 8.375% = $661.63</p>

<p>I just saved you all you needed and more.</p>

<p> </p>

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<p>Not exactly on the subject - but close (insurance). I do not pay insurance on my photo gear (and it is worth a pretty penny by now). Statistically it is unlikely that I would ever need one - and if that happens...well, bad luck.<br>

I paid, however, salary insurance for the last 10 years - just in case. My salary was good, the insurance was only about $120/month, so I figured - why not ?<br>

Last February I got stricken by a nasty variety of pancreatitis (if there are any doctors reading it - the worst variety of it). I still haven't returned to work yet - almost 10 months now. The insurance pays 80% of my previous income, which is a lifesaver.<br>

So - no, I would not spend money to insure my hobby gear. But - yes, I would insure something which is really important.</p>

<p> </p>

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<p>My insurance company (American National) will insure my gear for $10/per $1000.00 of coverage per year. So, to cover $5000 of gear it cost me $50.00 a year. They do cover the gear at replacement cost and it covers it no matter what happens. Even if I run over it with my own car.</p>

<p>Of course, I also have three car, one home, and one life policy with them.</p>

<p>I never buy insurance from the store. They only sell it because they make money on it, cause they know you will most likely never need it, of will not take advantage of it. Or like one I had, they made it so hard to have it honored, I gave up and "ate" the loss.</p>

<p>Jason</p>

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<p>I know this in no way is the situation everyone or even most are in but I insure my gear against only the issues I put my gear in which i have no immediate control. I'm a diver and I have flood insurance on my camera for Dive related accidents, because diving I don't have 100% control over my camera at all times, whether it is handing my camera to someone so I can get on board, or the rocking boat knocking it onto the deck or a mechanical piece failing and the camera flooding while on a dive. Things I CANT control. If I screw up and drop it its my own dumb fault and I shoulda held on better or used the strap. I agree with one of the early responses, put the cash you'd spend on the insurance + a little bit each week away and buy a new lens in 6 months (or replace something that you dropped if that comes to be the need), but here is the real question, you take insurance out on everything... What are the chances u'll even use HALF that insurance in the life of the item? Put the money on the side and if you would have needed the insurance on ONE of the items u'll have it put away already, and you would have spent the same or maybe even less then u would have otherwise.</p>
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<p>Hi Alexander,</p>

<p>I have "All Hazards" insurance on my photo equipment from the same company that writes my renter's insurance. It cost me approximately 1% of the retail value of the equipment per year. It not only covers me for theft and fire as my renter's insurance would, but also most forms of breakage. The only exceptions that I remember are vermin, war, and a "nuclear incident". There is no deductible, but you must declare a maximum value when you purchase the property. The value of the property is determined at time of loss e.g you buy a D300 today and declare the value as $1700 - the retail price price today. Two years from now the camera is run over by a car and unrepairable; the price of the DX00, the new Nikon replacement, has fallen to $1500. The company would pay you the $1500 for the replacement. There is no depreciation, it is just the price of a brand new camera has fallen. On the other hand, if the price goes up, you must declare a new value before any loss otherwise the maximum the company would pay is the declared value of $1700. I review my policy once a year.</p>

<p>For extended warranty, check with your credit card company. Many cards double the manufacturer's warranty, up to a total of two years, at no charge. All my cards do. Yes, both MasterCard and Visa do pay off. There is a bit of paperwork. </p>

<p>Some companies call the insurance "All Hazards", others call it "Inland Marine", others "Personal Article Floater"; my insurer now calls it "Valuable Personal Property".</p>

 

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<p>Hi Alexander,</p>

<p>I have "All Hazards" insurance on my photo equipment from the same company that writes my renter's insurance. It cost me approximately 1% of the retail value of the equipment per year. It not only covers me for theft and fire as my renter's insurance would, but also most forms of breakage. The only exceptions that I remember are vermin, war, and a "nuclear incident". There is no deductible, but you must declare a maximum value when you purchase the property. The value of the property is determined at time of loss e.g you buy a D300 today and declare the value as $1700 - the retail price price today. Two years from now the camera is run over by a car and unrepairable; the price of the DX00, the new Nikon replacement, has fallen to $1500. The company would pay you the $1500 for the replacement. There is no depreciation, it is just the price of a brand new camera has fallen. On the other hand, if the price goes up, you must declare a new value before any loss otherwise the maximum the company would pay is the declared value of $1700. I review my policy once a year.</p>

<p>For extended warranty, check with your credit card company. Many cards double the manufacturer's warranty, up to a total of two years, at no charge. All my cards do. Yes, both MasterCard and Visa do pay off. There is a bit of paperwork. </p>

<p>Some companies call the insurance "All Hazards", others call it "Inland Marine", others "Personal Article Floater"; my insurer now calls it "Valuable Personal Property".</p>

 

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