NSW Guitar Value Calculated by Lump Sum by Moving Insurance?

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MarineFerry

Member
3 February 2017
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My guitar (replacement value US$ 400) got damaged during relocation and the moving insurance is now only willing to pay for US$ 121 referring to the guitar's size of approx. 1.5 cu ft. On my request to cover the full amount, they quoted their T&C:

"Lump sum policy requires you to list out individual items that have a replacement value of US$ 500 and above on the right side table of the form. All other items are covered by a blanket policy where the insurance company calculates each cubic foot to be worth US$79.00 for replacement value."

Can they calculate the value of my belongings by sq ft?

To me that doesn't make sense. What if something very small gets broken?