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equipment insurance

2K views 28 replies 18 participants last post by  david2011 
#1 · (Edited by Moderator)
I just spoke with my all state guy and he told me that he can not sell me equipment insurance. Do any of you guys have insurance on any expensive equipment. I live in south Louisiana and am mostly just worried about having my shop flooded during a hurricane.
 
#2 ·
Usually a hobbyist shop is covered under your normal homeowners policy. Take pics & save receipts. If you're a commercial shop then your business insurance should cover. If you're illegally running a commercial shop out of a residence then the insurance can't help you as most all policies have a "no illegal use" clause.
 
#3 ·
I dont have any homeowners insurance, as the house is paid outright, and for some weird reason because it hasn't been insured for so long the I have to have it insured through the state for two years before I can even get a quote for a policy from a company, and the state wants 5K a years, so I just didnt get home owners insurance. I figured I could get a policy to cover what to me are basically toys, just like how a person might get a dirt bike or a 4 wheeler insured.
 
#4 ·
Something doesn't sound right here. If you buy or build a house must you also insure it with the state for two years? It is as if the state is penalizing you for not having non-required insurance. I would find another source for insurance and advice on such. That said you are taking quite the rick having nothing covered. I say screw the tools and get the dwelling covered first. If you had a flood what good are new tools if you have nowhere to put them.
 
#5 ·
no insurance wow.you do have liability i hope ? im with farmers and anything in my shop is covered under my home plan.my wife used to be a csr for a lot of the agents so were insured to the hilt.
 
#6 ·
Control freak, you make a good point, I just took allstates statement at face value, I havent looked around to see what other companies have to say about the uninsured issue.

The reason I didn't get any insurance is kind of two fold, A: even though its in south Louisiana its in (probably) the one spot that is at 8 ft above sea level, and B: the house is 125 years old and is outrageously over built, 12X12 cypress beams and rough cut 2X4 cypress studs at 12ish inch on center, they're anywhere for 8 inches to like 14 inches, its actually kind of funny how ununiform they are. fastened with just the biggest nails youve ever seen, about a quarter inch diameter and 8ish inches long. plus its up 3 ft on blocks. So while its a gamble Im not too worried about it blowing down or flooding. my shop is a metal building, probably wont be damaged even if it was to be flooded, but the equipment would be.
 
#7 ·
SWMBO is also my insurance agent. She said our homeowners policy covers our 'personal property' which includes my shop tools. She said you can have expensive items 'scheduled' on your policy like you would expensive jewelry or paintings but there could be additional premiums charged for that coverage. Keep in mind this is how it is out here on the left coast. I think I would call around and see what other companies there have to say about this.
Best wishes,
 
#8 · (Edited by Moderator)
So what about fire? You may not be worried about storm damage, but that is not the only hazard.

Also, for everyone out there, you need to know flood damage is a whole 'nother ball of wax. Most homeowners insurance doesn't cover flood damage so you would need a separate policy most likely through the national program. And you need to know how your policy defines a flood. Damage from a failed water heater may be treated differently than a sewer backup or from an actual external flood or "wind-driven rain".

Not to mention if you've made updates to your home and not increased coverage. And actual value vs replacement cost coverage, code and ordinance to cover the added cost to rebuild to latest codes, etc

Definitely one of those areas you need to read the fine print and/or enlist a solid agent to make sure you actually have the coverage you think you have.

Just my $0.02 as having to deal with a couple homeowners insurance claims over the years.
.
 
#9 ·
here on the west coast we also have that thing called earthquakes that are not covered by regular insurance.i have that coverage also.to not cover your home whether paid for or not is not smart.my home is fully paid off but i sure aint getting rid of mine.good luck.
 
#10 ·
I'm in Nor Cal and while earthquakes are normally not significant here fires are. Our home is all ours, no debts. We are fully insured to replacement cost. Anything less to my mind is short sighted. I have pics of all my tools both vintage and contemporary.
 
#11 ·
Areas are flooding now that never ever flooded before here in the north east. People are learning the hard way that inaurance doesn't cover anything when you get flooded. Just expect the unexpected. Your house might be over built but things happen. Tree can come down and take out a room. Insurance sucks but it's neccesary.
 
#12 ·
You might try calling an independent insurance broker. They can check with several different companies and find the best price and coverage for your needs. As for the Allstate rejection there must be more to the story. I would think that an inspection would bypass their 2 year rule but I suspect that they have just put a moratorium on new policies in your area, possibly waiting for new flood maps to be completed.
 
#14 ·
when I "officially" went from hobbyist to commercial in my sign shop, I got separate coverage for the building and its contents through my homeowner's policy. (it was on the same property as my home).
a year later, I had a lightning strike on the office end which damaged the building structure and fried EVERY electronic thing that was plugged in. so my pen plotter and computer were upgraded. it was a $15k hit.
(I also had flood damage coverage for just a few dollars extra).

Shelving Wood Room Shelf Metal
 

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#15 ·
when I "officially" went from hobbyist to commercial in my sign shop, I got separate coverage for the building and its contents through my homeowner s policy. (it was on the same property as my home).
a year later, I had a lightning strike on the office end which damaged the building structure and fried EVERY electronic thing that was plugged in. so my pen plotter and computer were upgraded. it was a $15k hit.
(I also had flood damage coverage for just a few dollars extra).

Shelving Wood Room Shelf Metal


- John Smith
Separate building?
 

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#17 ·
What if someone wanders on to your property and gets hurt? In PA, I am responsible unless I have my property "properly Posted" as private. Of course being 'in town' I don't realistically think this is possible for us.

I have State Farm and have family heirloom items and shop items insured for what they appraise for or sale price (receipts required) respectively. We keep the original records off-site, and keep copies at the house.

Never heard of being able to not have homeowners insurance. Of course, I haven't been everywhere.
 
#19 · (Edited by Moderator)
you guys all bring valid point, I guess I knew in the back of my mind that regular insurance doesn't cover flood damage, and that is all I'm concerned with so I probably could get just flood insurance. My shop is steel. it was rated for a category 3 hurricane, and then I had closed cell foam installed and studded and put up 1/2" plywood, all of which adds to rigidity, I feel confident it will stand up to cat 5 storm, but if it gets a foot of water it in thats a different story.

Fire is really not a concern in south Louisiana, I mean I guess I could have electrical issues, but all the wiring is new.
 
#20 ·
+1 to shopping with an independent agent, the uninsurabilty statement by Allstate sounds like BS and likely illegal. My situation is much like what everyone else has described, anything in the house or backyard shed is covered by my homeowner's unless I'm selling something, that changes the game but I'm not. Off site tools like if I were to leave my sawmill in the wood and it was damaged or stolen, need to be addressed specifically which I will when the time comes, for now it sits in my backyard.
 
#21 ·
+1 to shopping with an independent agent, the uninsurabilty statement by Allstate sounds like BS and likely illegal. My situation is much like what everyone else has described, anything in the house or backyard shed is covered by my homeowner s unless I m selling something, that changes the game but I m not. Off site tools like if I were to leave my sawmill in the wood and it was damaged or stolen, need to be addressed specifically which I will when the time comes, for now it sits in my backyard.

- bigblockyeti
Yeti,

I am sure different companies have different policy quirks but here is what happened to my neighbor. His golf club charged him too much for a cart rental so he went out and bought his own cart and trailer to bring it to the course. Well someone came in while he was sleeping and hooked up the trailer and stole both. He filed a claim and was denied because he hadn't locked the gate. Not sure what would happen if a property has no fence.
 
#22 ·
My daughter sells insurance. I'll ask. I do know homeowners covers the housd and contents including tools in the garage. My boat is also covered on the property.

Now whether you have enough coverage would be the question…
 
#23 · (Edited by Moderator)
I have some experience with the insurance thing. What happens is that if you have a lapse in insurance, the insurance companies assume that you are seeking insurance because you already have or anticipate damage. So, they refuse … which puts you in the high-risk pool. In a free market, they are free to refuse to insure anyone that consider high risk as long as the refusal is not on protected grounds (race, religion etc.) If no insurance company is willing to insure you, the state will do it for a high cost. At least in my state, that is the way it is. I've been through that and paid high rates for a few years before I fell back into the normal catagory.
 
#24 ·
I have some experience with the insurance thing. What happens is that if you have a lapse in insurance, the insurance companies assume that you are seeking insurance because you already have or anticipate damage. So, they refuse … which puts you in the high-risk pool. In a free market, they are free to refuse to insure anyone that consider high risk as long as the refusal is not on protected grounds (race, religion etc.) If no insurance company is willing to insure you, the state will do it for a high cost. At least in my state, that is the way it is. I ve been through that and paid high rates for a few years before I fell back into the normal catagory.

- Ocelot
These are words of wisdom!
 
#25 ·
Well that explains things. I still say that there must be a company out there that will take a chance. Maybe your opening line should be "I think I am being over charged for insurance, can you provide a quote". Also when determining the amount you need to get coverage for what it costs to build back or replace, not what it is worth.
 
#26 · (Edited by Moderator)
Insurance is for those things you can't afford to lose.
Flood insurance is mostly Federal for residences. It has a Max benefit of $250k with about $160K for contents with a $1200.00 deductible regardless of the size of your house.
In addition of fire and other losses on a home it is also critical to have liability insurance. You never know when someone may get hurt on your property and sue you….even a burglar breaking in who gets hurt has been known to file a law suit. If nothing else liability insurance will require the insurance company to help pay for your defense in court. For those fortunate enough to have acquired considerable assets an additional "umbrella" liability policy is important to protect those assets from law suites.

I would suggest you talk to an independent insurance agent about your insurance needs. They usually represent several insurance companies and besides getting you the best deal they will also help represent you to the insurance company if you have a claim.

Something I have recently learned is that in a major loss, like a flood or wild fire, it is best to hire a private adjuster who can represent your claim to the insurance company. Yes, they charge a fee but usually they get you a far better settlement than you can get yourself; sometimes for more than your coverage.
 
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