I bought a Korg Kronos workstation in 2018 for $4,000. In 2026, a power surge fried the motherboard. I filed a claim with my standard renters insurance. They looked up the current used price of a “digital keyboard” on eBay, saw they were selling for $1,200, applied depreciation, and sent me a check for $800. A new equivalent workstation costs $5,000.
Key Takeaways
- Digital Rot: Digital synths (workstations, midi controllers) depreciate like laptops. They lose value fast. Analog synths (Moog, Prophet) tend to appreciate.
- ACV vs. Replacement Cost: If you have an “Actual Cash Value” (ACV) policy, you get the eBay used price. If you have “Replacement Cost,” you get the price of a brand new equivalent (e.g., the Korg Nautilus or Montage).
- Software is Excluded: Most policies do not cover the VSTs, sample libraries, or patches stored on the synth. Back up your data!
- Vintage Analog Needs Agreed Value: If you have a Jupiter-8, “Replacement Cost” is dangerous because there is no new equivalent. You need “Agreed Value” to lock in the $30,000 collector price.
The “Why” (The Trap)
The trap is “Technological Obsolescence.”
Insurers treat digital instruments like consumer electronics. A 10-year-old digital piano is viewed as “obsolete.”
However, as a musician, you need the function of that instrument. To get that function today, you have to buy the newest flagship model, which is expensive.
Standard policies depreciate items by age (e.g., 10% per year). After 7 years, your gear is valued at near zero.
The Investigation (My Analysis of Valuation)
I checked how different insurers value a fried synth rig.
MusicPro
- The Valuation: Replacement Cost.
- The Result: If my Kronos dies, they pay for the current equivalent model (e.g., Korg Nautilus), which is ~$3,500. This puts me back in business.
State Farm (Homeowners)
- The Valuation: Likely ACV (unless upgraded).
- The Result: They pay the “garage sale” value. $800.
Vintage Synth Insurance (Heritage)
- The Scenario: A Prophet-5 Rev 3.
- The Valuation: Agreed Value. We agree it’s worth $10,000. If it burns, I get $10,000, regardless of what Behringer clones are selling for.
[IMAGE: Chart showing value trajectory: Digital Synth (Down) vs. Analog Synth (Up), intersecting with “Insurance Payout” line]
Comparison Table
| Instrument Type | Policy Type Needed | Why? |
| Modern Digital (Nord/Korg) | Replacement Cost | Buy new gear to replace old tech. |
| Vintage Analog (Moog/Roland) | Agreed Value | Value appreciates beyond retail. |
| Cables/Stands | Replacement Cost | They wear out; need new ones. |
| Software/Samples | Data Recovery Rider | Standard policy excludes data. |
Step-by-Step Action Plan
- Audit Your Rig: Separate your gear into “Digital/Depreciating” and “Vintage/Appreciating.”
- Check Your Policy: Does it say “Replacement Cost” anywhere? If it says “Actual Cash Value,” cancel it immediately.
- Appraise the Vintage: If you own a CS-80 or Jupiter-8, get a letter from a vintage dealer stating the value. Send it to the insurer to lock in Agreed Value.
- Surge Protection: Digital synths are computers. Use a Furman power conditioner. Insurance covers surge damage, but downtime kills your career.
FAQ
Does insurance cover a dead internal battery?
No. Maintenance.
What if the screen fades?
No. Wear and tear.
If I spill beer on it, is it covered?
Yes, usually under “Accidental Damage” (unless you have a strict named-peril policy).