When most people think of collectibles, they picture art, wine or jewelry. Increasingly, though, serious money is flowing into another asset class: high‑value musical instruments.
From Stradivarius violins to Steinway concert grands and celebrity guitars, prices are rising – and many owners still have them tossed into a standard home policy. That, says CHES Special Risk president and CEO Gary Hirst (pictured), is a costly mistake waiting to happen.
“Rarity is pushing the growth,” Hirst said. Violins made centuries ago, such as Stradivarius instruments, produce a tone that is difficult to replicate with newer builds. “It’s very difficult to get that same tone from a newer instrument, only because the instrument is older and it’s obviously seasoned,” he noted.
At the same time, many high‑end instruments are painstakingly handmade. Steinway pianos, for example, “take several years to make,” and must be kept under “certain humidity conditions” to optimize their sound. The combination of limited supply, long build times and fragile performance requirements naturally lifts values.
In some cases, the underlying craftsmanship has effectively vanished. “In some instances, those craftsmen are just not available anymore. The skill has been lost,” Hirst said. That pushes up scarcity value further.
On the electric side, collectors are increasingly treating instruments like any other alternative asset. “You have electric guitars… let’s take Ozzy Osbourne [as an example]. He has recently passed away, and… the value of his guitars is just going to go up and up and up over the years,” Hirst said.
Globally, the internet has flattened local price differences. “Everyone is aware of instruments that become available around the globe,” he said. “There is no difference in pricing between the price of an item in North America compared to… Japan or in Europe, because those values are the same.”
He also points to the broader luxury trend. As pop stars sell their catalogs to private equity and firms launch funds based on Hermes bags and other high‑end goods, instruments are being pulled into the same orbit. “It just becomes another item to invest in,” Hirst said. “The money chases scarcity.”
The problem, he argues, is that many owners still rely on mass‑market home or tenant insurance for these assets – even when a single item may be worth hundreds of thousands of dollars.
“If you buy a traditional homeowner policy from one of the traditional providers… they’re very competitive, they’re very efficient,” he said. “However, they’re usually not able to give you the sort of policy limits that you would want for, let’s say, a Steinway piano.”
“A Steinway piano can be about a million dollars, and if you’ve just got a regular homeowner’s policy, it’s not going to give you that sort of value,” he added.
Sub‑limits are another trap. “With jewelry, a lot of traditional insurers only give $5,000 worth of coverage. And, you know, nowadays an engagement ring is more than $5,000,” Hirst said. The same logic applies to fine instruments: the notional “contents” limit may look high, but item‑specific caps and exclusions can leave owners badly under‑insured.
Just as important is the claims philosophy. Mass‑market policies are generally geared towards settling quickly in cash, not preserving a specific object.
“The reason why the traditional homeowner insurers are traditionally so competitive is that they have a different way of assessing claims,” Hirst said. Their assessment is often to “pay a check and walk away,” especially if the instrument is badly damaged.
By contrast, he said, specialist MGAs like Jewelry Store Insurance – operated by CHES – build policies and networks around partial losses and restoration.
“Not every item is lost 100% – it’s usually a partial loss, so it does need repairing,” Hirst said. “You want to have access to those professionals that can help you get the items properly repaired.”
Water damage is a prime example. “If you had water damage on a musical instrument that was made of wood, you’re in real trouble, and you need a proper craftsman to repair that damaged item,” he said. “It’s really only the specialist insurers that have access to those sorts of craftsmen and actually have an interest in repairing the item, rather than just writing a check and writing off… the piece of equipment.”
The risk landscape for high‑value instruments goes well beyond theft.
“There are lots of examples in the press where these big rock bands are on tour, and their equipment is being flown around in a crate in the bottom of an aircraft,” Hirst said. “For one reason or another that crate is damaged or dropped – that can jeopardize a whole rock concert and a whole tour.”
Environmental factors are just as critical, especially for pianos and string instruments.
“With high‑end pianos, you are also having to look at the humidity in a house,” he said. Insurers will want to know how owners are managing that risk. In hotter, drier climates, the stakes are even higher. Hirst recalled insuring instruments in Israel, where summer temperatures can hit 45°C.
“It’s a very dry climate, and as a result, you know, a piano is subject to warping or indeed cracking,” he said. “These items are very fragile and very prone to risk of nature.”
Hirst is clear that specialist cover will cost more than a basic home policy – but insists the trade‑off is worth it.
“Even though the insurance might be more expensive… you pay for what you get, really,” he said. “You want the certainty of replacement or repair.”
For first‑time buyers of high‑value instruments, his main advice is simple: don’t go it alone.
“I think you always have to try and find an expert,” he said. Whether it’s a luthier, a piano technician or a specialist broker, someone should be able to tell you what you’re really buying – and what it would take to maintain and insure it properly.
“It’s just like buying a car,” he said. “If I were to buy an older car, I would find a professional that could have a look at it and tell me what I’m buying. Am I buying something that needs a small amount of care, or something that needs a huge amount?”
