Insurance question


Just Bob

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Talk to your agent about it and decide if you want to pay for 100% coverage - insuring the value of all of your tools and supplies- so you’d be made whole if you lost everything in a fire/tornado/severe flood. Or you can cover a portion of the total value so that you’d be covered for a partial loss (storm damage, theft, slight flooding, etc).

Also need to ask them if it’s full replacement value or if it’s retail price less depreciation/used market value.

Then talk deductibles. 

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I've never had tools covered.  I had one shop hit by a tornado in 1988, and a lot of stuff got thrown out in the yard.  The building was covered, but the only real damage to tools was that a couple of my oilstones were broken.   We just go with the standard contents percentage on our houses.  Our house is filled with antiques from 3 Grandfathers and one Great Grandfather, and some old stuff from an Aunt and Uncle.  No way it could all be replaced anyway, but who knows what the value is.  

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I would consider your location and the chances of a catastrophic claim. Yours would probably be a fire and less likely a storm. 
I have a list of my major tools and the original cost and date purchased, just like my guns, furniture and appliances in my house and insure all of them at replacement value. Probably a little over kill but we have flooded3 times (1” or less) in the last 20 years and it was amazing how lenient they were to replace so much that didn’t actually need replacing. But again, I would consider your risk. 

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3 minutes ago, Coop said:

I would consider your location and the chances of a catastrophic claim. Yours would probably be a fire and less likely a storm. 
I have a list of my major tools and the original cost and date purchased, just like my guns, furniture and appliances in my house and insure all of them at replacement value. Probably a little over kill but we have flooded3 times (1” or less) in the last 20 years and it was amazing how lenient they were to replace so much that didn’t actually need replacing. But again, I would consider your risk. 

Yea, fire is our biggest concern.  I did value everything at retail replacement cost.  Insurance broker had no problem with that.  I was just curious how everyone else did theirs.

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On 7/31/2023 at 8:01 PM, Tom King said:

I've never had tools covered.  I had one shop hit by a tornado in 1988, and a lot of stuff got thrown out in the yard.  The building was covered, but the only real damage to tools was that a couple of my oilstones were broken.   We just go with the standard contents percentage on our houses.  Our house is filled with antiques from 3 Grandfathers and one Great Grandfather, and some old stuff from an Aunt and Uncle.  No way it could all be replaced anyway, but who knows what the value is.  

I’m pretty much the same. 

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4 hours ago, BillyJack said:

Most are just guessing or are using* theirs as how it is. You won’t know till you talk to your agent. One phone call away..

I agree, that is why I worked with the broker at my house.  My shop is a separate building. 

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On 7/31/2023 at 10:04 PM, Just Bob said:

...I did value everything at retail replacement cost.  Insurance broker had no problem with that.  I was just curious how everyone else did theirs.

For the big items I keep a copy of the purchase receipt with the owners manual, so I have make, model, purchase price and date.  Unfortunately (or stupidly), I keep the manuals in the shop :blink:.  Probably should keep copies elsewhere. 

Annual panoramic pictures might also help for the big stuff.

The small stuff (screw drivers to lathe accessories) is another documentation problem.

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