Most such policies are Replacement Cost -- i.e., no depreciation -- but again this can vary by company & state. Also, some companies offer an "inflation" coverage that automatically increases you coverage amount annually -- some offer as a standard part of the policy, some offer for a slight additional premium charge, and some don't offer. You're correct in that it can be an incentive for a "moral risk" but on the other hand, too many strange claims and you're likely to get a letter from the company that will make you a member of their "alumni association". :D Also remember that "consumables" such as lens cleaner, lens tissues, non-rechargeable batteries, etc are generally considered to be uninsurable because they're eventually consumed.

Most such policies are Replacement Cost -- i.e., no depreciation -- but again this can vary by company & state. Also, some companies offer an "inflation" coverage that automatically increases you coverage amount annually -- some offer as a standard part of the policy, some offer for a slight additional premium charge, and some don't offer. You're correct in that it can be an incentive for a "moral risk" but on the other hand, too many strange claims and you're likely to get a letter from the company that will make you a member of their "alumni association". :D Also remember that "consumables" such as lens cleaner, lens tissues, non-rechargeable batteries, etc are generally considered to be uninsurable because they're eventually consumed.

Speaking from point of view of an Insurance professional with 43+ years in the industry, It's automatically covered under your Homeowners Policy (or renters policy), subject to whatever deductible you have on your homeowners policy. It's covered for theft from the premises or away from premises, fire, vandalism, etc. However, if you drop it or knock it off the table, the Homeowners policy will NOT provide coverage.

For that, you need a "camera floater" or "personal articles floater" (also referred to as Inland Marine Coverage) and they are cheap (assuming you're not a professional), -- talk with your homeowners agent. If you're a professional (income producing with camera), you can still get the coverage, it's just a little more expensive but still affordable considering the option of having nothing when your equipment is damaged.

You’re much better off with a separate policy, rather than attaching this coverage to your homeowners coverage for a couple reasons. First, if attached to your homeowners insurance, you’ll generally have a much higher deductible. Second, if attached to your homeowners insurance and you happen to have a theft claim on your camera equipment, it could result in a surcharge on your entire homeowners premium. By having on a separate policy, you can get a much lower deductible and avoid any potential surcharges on your homeowners policy if you have claim activity. In addition, the separate "Inland Marine" policy provides a much broader form of coverage that you get under your homeowners policy.

Rates vary widely from state to state. Check with the agent who writes your homeowners insurance about a separate policy. Your homeowners company/agent undoubtedly has ability to provide a separate policy covering your camera equipment with broader coverage (and cheaper) than the homeowners policy, and with much lower deductible (or no deductible). No need to find a different company unless you just don't like the company you already have.