What did you do today?

[gee-dub]

I did an update to my "insurance" memory stick.  I keep a pic of the machine, the S/N tag, and a scan of the receipt for most large items.  I guess I can blame COVID for me falling a few years behind.  Took some digging but I am near-current again ;-)

 

[BillyJack]

On 7/25/2023 at 5:25 PM, gee-dub said:

I did an update to my "insurance" memory stick.  I keep a pic of the machine, the S/N tag, and a scan of the receipt for most large items.  I guess I can blame COVID for me falling a few years behind.  Took some digging but I am near-current again ;-)

 

For shop tools?

[gee-dub]

On 7/25/2023 at 3:34 PM, BillyJack said:

For shop tools?

Yeah. I guess I could’ve been more clear about that… .  Pictures and documents are not specifically necessary for insurance claims but they stop any attempt to deny what you had and what you paid for it in the event of a claim.

[JohnG]

I started a list when I was first starting out, I should probably update it since I now have significantly more money invested. 

[BillyJack]

All my  stuff have been claimed on taxes for business. 

[JohnG]

That won’t necessarily help for an insurance claim.

[BillyJack]

On 7/25/2023 at 7:13 PM, JohnG said:

That won’t necessarily help for an insurance claim.

I know for a fact it will. I talked to my same insurance  agent for 25 years about it. Remember … I ran a business out of my home, the reason I wrote all my tools off on my taxes..My tools are in my garage, there under contents now..

I’ve talked to mine about it, sounds like maybe some need to discuss this with theirs 
 

 

[wtnhighlander]

A major portion of my tool collection is inherited. No insurance will ever pay what I think they are worth!

[BillyJack]

There is a lot to insuring tools, etc. It will depend on your policy and the insurance company. Most don't want to pay for that protection .

 

This has been discussed so many times  on  the last 20 years, it's different with each company and state.

[JohnG]

On 7/25/2023 at 8:48 PM, BillyJack said:

I know for a fact it will. I talked to my same insurance  agent for 25 years about it. Remember … I ran a business out of my home, the reason I wrote all my tools off on my taxes..My tools are in my garage, there under contents now..

I’ve talked to mine about it, sounds like maybe some need to discuss this with theirs 

So if your shop were to burn down, you’d send the insurance co 20 years of tax returns? You put tool level detail for all of your tools purchased every year on your tax returns? We only list assets by name when reporting gain/loss on sale, but for new assets purchased it is grouped by asset class and depreciable life. Non-cap tools and equipment are just in an expense line. Of course we have detail supporting the tax returns, but that is a completely different matter than “writing them off for taxes.”

If you’ve discussed it with your insurance company and you feel good about your coverage, then that’s great! But you said it yourself:
 

On 7/25/2023 at 11:18 PM, BillyJack said:

There is a lot to insuring tools, etc. It will depend on your policy and the insurance company. 

For most people, having a document (properly backed up offsite) with all of their assets on it (not limited to the shop) would be very smart. Accessing that file will always be faster and easier than going through years of paperwork or trying to remember everything. Having that list will also make it easier to work with the insurance company to be sure they have the coverage they want/need. 

 

[BillyJack]

On 7/26/2023 at 7:14 AM, JohnG said:

So if your shop were to burn down, you’d send the insurance co 20 years of tax returns? You put tool level detail for all of your tools purchased every year on your tax returns? We only list assets by name when reporting gain/loss on sale, but for new assets purchased it is grouped by asset class and depreciable life. Non-cap tools and equipment are just in an expense line. Of course we have detail supporting the tax returns, but that is a completely different matter than “writing them off for taxes.”

If you’ve discussed it with your insurance company and you feel good about your coverage, then that’s great! But you said it yourself:
 

For most people, having a document (properly backed up offsite) with all of their assets on it (not limited to the shop) would be very smart. Accessing that file will always be faster and easier than going through years of paperwork or trying to remember everything. Having that list will also make it easier to work with the insurance company to be sure they have the coverage they want/need. 

 

All you have to do is call your insurance company. 
 

At this point I really don’t  care  about those tools . They made me a living and payed for themselves.

if you want additional coverage for your tools outside of your normal house policy, you’ll have to pay for it. 

[Tom King]

I don't think I could document all my tools in a year.  All mine have been written off too.  Someone asked me what would I do if someone stole my tools.  I said by the time they got the first semi truck half loaded, they would all be full of holes, and then the rest of the semi trucks would be sitting there empty.

[BillyJack]

On 7/26/2023 at 7:59 AM, Tom King said:

I don't think I could document all my tools in a year.  All mine have been written off too.  Someone asked me what would I do if someone stole my tools.  I said by the time they got the first semi truck half loaded, they would all be full of holes, and then the rest of the semi trucks would be sitting there empty.

I’ve seen woodworkers on these forums document every screw driver. I can see documenting stationary and portable power tools and some in between that are expensive, but it don’t take that long. 
 

Insurance is going to ask how much coverage you want. if you say, 10k or 30k it  comes with a price..

[legenddc]

Got up this morning and replaced the decaying insulation on our AC line. Going to be in the 90s the next few days so I wanted it done before it got too hot out.

Regarding insurance, I did a quick run through of our house with my phone recording everything and added it to the cloud. Might try to make it an annual activity. I didn't go into details, just opened drawers, closets, cabinets, etc. For a while I was sending all online receipts to a separate email address but I never got into the habit of doing it every time.

[Chestnut]

1 hour ago, legenddc said:

Got up this morning and replaced the decaying insulation on our AC line. Going to be in the 90s the next few days so I wanted it done before it got too hot out.

Regarding insurance, I did a quick run through of our house with my phone recording everything and added it to the cloud. Might try to make it an annual activity. I didn't go into details, just opened drawers, closets, cabinets, etc. For a while I was sending all online receipts to a separate email address but I never got into the habit of doing it every time.

Did you total up retail values? I did that then my eyes bulged....

Speaking with my insurance agent, keep records of the furniture you make as well. Pricing hand made furniture is different than just looking at some piece at Walmart or IKEA. I was advised to find similar pieces of solid wood hand made furniture. Then total that list up. My tools have easily returned 2x their value in furniture. That doesn't include built in cabinets or stuff I've made for others. My wood cost isn't included but honestly the wood cost is a small fraction the price of most of the furniture.

[BillyJack]

Built in pieces are cabinetry.Estimating the price for a piece of furniture would be tricky. 
 

If your insurance is less than you think it should coverage, you only need to inform the insurance company. They just charge you for additional coverage..

[legenddc]

On 7/26/2023 at 10:56 AM, Chestnut said:

Did you total up retail values? I did that then my eyes bulged....

Speaking with my insurance agent, keep records of the furniture you make as well. Pricing hand made furniture is different than just looking at some piece at Walmart or IKEA. I was advised to find similar pieces of solid wood hand made furniture. Then total that list up. My tools have easily returned 2x their value in furniture. That doesn't include built in cabinets or stuff I've made for others. My wood cost isn't included but honestly the wood cost is a small fraction the price of most of the furniture.

I went through my whole house so there's no way I'm totaling up everything. Even with the shop there's so much it would be overwhelming. I wouldn't replace it all and would struggle since almost all of my larger tools were bought used. I have a rough list of the bigger items and what I paid vs. how much I've made selling a few projects over the years. If I counted the furniture I've built

There's a couple local woodworkers who have done some similar projects and one has pricing on his website. I would have to reach out to them to to get estimates. You're right though, the shaker end table I made is $750 on one of their websites vs. $75 at Ikea.

I read a few different posts on Reddit a long time ago and it's stuck with me. We don't think of how much stuff we've bought over time. Think about what's in your shower. If you're like me you're probably thinking a bottle or two of shampoo and a couple bars of soap.

Here's the list from the Reddit post: 

• Designer Shower Curtain - $35
• Matching Shower Curtain Liner for Designer Shower Curtain - $15
• Shower Curtain Rings x20 - $15
• Stainless Steel Soap Dispenser for Shower - $35
• Natural Sponge Loofah - from Whole Foods - $15
• Natural Sponge Loofah for Back - from Whole Foods - $19
• Holder for Loofahs - $20
• Bars of soap - from Lush - $12 each (qty: 4)
• Bath bomb - from Lush - $12
• High end shampoo - from salon - $40
• High end conditioner - from salon - $40
• Refining pore mask - from salon - $55

Bit different from my shower contents but you get the gist.

On 7/26/2023 at 11:05 AM, BillyJack said:

Built in pieces are cabinetry.Estimating the price for a piece of furniture would be tricky. 
 

If your insurance is less than you think it should coverage, you only need to inform the insurance company. They just charge you for additional coverage..

I do need to reach out to my agent and schedule a meeting to discuss our insurance on house/cars as well as adding life insurance. I've brought up tools with them in the past and they said it was covered. I don't think they fully understood what I have.

[BillyJack]

On 7/26/2023 at 11:30 AM, legenddc said:

I went through my whole house so there's no way I'm totaling up everything. Even with the shop there's so much it would be overwhelming. I wouldn't replace it all and would struggle since almost all of my larger tools were bought used. I have a rough list of the bigger items and what I paid vs. how much I've made selling a few projects over the years. If I counted the furniture I've built

There's a couple local woodworkers who have done some similar projects and one has pricing on his website. I would have to reach out to them to to get estimates. You're right though, the shaker end table I made is $750 on one of their websites vs. $75 at Ikea.

I read a few different posts on Reddit a long time ago and it's stuck with me. We don't think of how much stuff we've bought over time. Think about what's in your shower. If you're like me you're probably thinking a bottle or two of shampoo and a couple bars of soap.

Here's the list from the Reddit post: 

• Designer Shower Curtain - $35
• Matching Shower Curtain Liner for Designer Shower Curtain - $15
• Shower Curtain Rings x20 - $15
• Stainless Steel Soap Dispenser for Shower - $35
• Natural Sponge Loofah - from Whole Foods - $15
• Natural Sponge Loofah for Back - from Whole Foods - $19
• Holder for Loofahs - $20
• Bars of soap - from Lush - $12 each (qty: 4)
• Bath bomb - from Lush - $12
• High end shampoo - from salon - $40
• High end conditioner - from salon - $40
• Refining pore mask - from salon - $55

Bit different from my shower contents but you get the gist.

I do need to reach out to my agent and schedule a meeting to discuss our insurance on house/cars as well as adding life insurance. I've brought up tools with them in the past and they said it was covered. I don't think they fully understood what I have.

Because it’s basic coverage. If you say you want more coverage because you have a garage full of tools, it’s up to you to bring it up and ask for a better rate, which you’ll pay more for the coverage.

 

Most people don’t want to pay more, so they don’t say anything.

[Chestnut]

1 hour ago, legenddc said:

I wouldn't replace it all and would struggle since almost all of my larger tools were bought used. I have a rough list of the bigger items and what I paid vs. how much I've made selling a few projects over the years. If I counted the furniture I've built

There's a couple local woodworkers who have done some similar projects and one has pricing on his website. I would have to reach out to them to to get estimates. You're right though, the shaker end table I made is $750 on one of their websites vs. $75 at Ikea.

IIRC it doesn't matter what YOU paid it matters how much it'd cost to replace. I don't think they care about used prices or even if you bought it on sale. If today at the store it costs $500, that's what replacement cost is. I've used https://vermontwoodsstudios.com/  for design ideas but also to get a price idea. If their marketing is to be believed they are made by local craftspeople.

A friend of mine had a valuable item stolen from his home. He bough tit used for $350 but retail was $750. His agent cut him the check for $750. This was renters insurance but still should be the same. My agent has told me basically something similar.

[gee-dub]

On 7/26/2023 at 10:08 AM, BillyJack said:

Because it’s basic coverage. 

My various agents have all said what @BillyJack says. Anything in my shop is covered by basic household contents coverage up to whatever your policy is set for.

[legenddc]

On 7/26/2023 at 2:10 PM, Chestnut said:

IIRC it doesn't matter what YOU paid it matters how much it'd cost to replace. I don't think they care about used prices or even if you bought it on sale. If today at the store it costs $500, that's what replacement cost is. I've used https://vermontwoodsstudios.com/  for design ideas but also to get a price idea. If their marketing is to be believed they are made by local craftspeople.

A friend of mine had a valuable item stolen from his home. He bough tit used for $350 but retail was $750. His agent cut him the check for $750. This was renters insurance but still should be the same. My agent has told me basically something similar.

I think that depends on your policy. Some are full replacement cost and some are "replacement cost minus depreciation". Could depend on your state as well.

[pkinneb]

Actually last night but...

A couple peg test runs

Also ran a oil mix test on the ash really liking this.

[Chestnut]

20 hours ago, legenddc said:

I think that depends on your policy. Some are full replacement cost and some are "replacement cost minus depreciation". Could depend on your state as well.

I didn't think of different regions and how industry practices may vary. Also company to company could be vastly different.

[BillyJack]

Insurance companies will gladly sell you coverage, coverage depends on how  much you’re willing to spend to get the coverage you want. My daughter sells home owner insurance and my buddy down the street sold business insurance policies. 
 

My daughter looked at my policy and said it was good coverage, but she could not get me the  deal my insurance company offers.

[BillyJack]

My daughter is a DIY’er.I told her When I’m gone she can have what ever tools she wants and can yard sale the rest. The bar contents ????? I’m undecided.