How much...

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Turned Around

Turned Around

Member
Joined
Jul 28, 2011
Messages
838
Location
Houston, TX
I had to do a little insurance shopping on the house since my current provider is a bit off on their estimating skills. So I decided to taylor the new policy to my needs, not just a simple "Row A Policy".
So I went aroudn the shop and started adding up the main tools in case of fire. So I'm curious how much everybody has invested in their home shops. Mine's in a simple, one car garage, so there's not too much to it.

Grizzly 5979: paid $120
Ridgid 14" bandsaw w/ riser block: paid $100
Delta dust collector: paid $75
Craftsman radial arm saw: hand-me-down
Ryobi table saw: paid $100
Harbor Freight grinder: paid $45
Craftsman drill press: hand-me-down
DeWalt planer: paid $50
Craftsman scroll saw: hand-me-down

those are the main tools. gotta love craigslist for those killer deals.
 
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If you are tailoring a policy, you need to consider REPLACEMENT COST, not paid cost. I know we have a couple of insurance guys here that can be more specific, but you could not replace those tools for $500....
 
I wish my list was so short! I've spent more on a few hand planes.

I've asked my insurance company and they didn't want a broken down list or anything (though you should have one just in case!). They said unless it is over $10,000 I didn't need specific coverage. I'm north of the border so it may be different for you but you should ask around to see if this is the case.

AK
 
they said the smart thing to do was go around with a camera, take a picture of the main things and the serial numbers in case of fire or theft. my garage is attached, so it's considered as part of the dwelling and not a seperate building, so everything in the garage falls under the same roof as the rest of the inside of the house.
 
I am not an insurance agent. That said, it may be that if you use your tools "for business", they may not be covered under a generic home owners or renters policy. It is worth checking out to be sure.
 
I have a shop that is a Morgan 16 x 20. It is covered under the same policy as our house but as a separate building. The building is covered for 10,000 and the contents are covered for 8,000. For what I have that is basically replacement costs.

Your in Texas so basically the insurance policies should be the same as the options we had. If your not happy with the $$$ amount of coverage, have them add more to it. It doesn't raise the premium very much. Our house is paid for so we had a few options. Most will have option for coverage of paying house off or replacement value.
 
SteveG said:
I am not an insurance agent. That said, it may be that if you use your tools "for business", they may not be covered under a generic home owners or renters policy. It is worth checking out to be sure.
Click to expand...

Be careful about this. I have been advised that if I "sell a pen" I am in business and the tools are not covered.

Now, for me--I did enough shows that I expected to be "a business". But, be careful what you say to your insurance company---if you are a business, you should consider "business insurance rider" to your homeowners. If you want your tools covered as hobby, be careful what you say about selling pens.
(wife sells a half a dozen a year---best not to mention)
 
ed4copies said:
SteveG said:
I am not an insurance agent. That said, it may be that if you use your tools "for business", they may not be covered under a generic home owners or renters policy. It is worth checking out to be sure.
Click to expand...

Be careful about this. I have been advised that if I "sell a pen" I am in business and the tools are not covered.

Now, for me--I did enough shows that I expected to be "a business". But, be careful what you say to your insurance company---if you are a business, you should consider "business insurance rider" to your homeowners. If you want your tools covered as hobby, be careful what you say about selling pens.
(wife sells a half a dozen a year---best not to mention)
Click to expand...

they know the tools are for "hobbies". they didin't ask anything else.
 
About 2 years ago I had a lot of tools and other things stolen from the house. One thing I did learn that depreciation KILLS. The snap on and matco tools they will give you pawn shop prices for them. I had over 12k in tools and barley got 5k for them. Granted I am retired from being a mechanic and dont use them much anymore. It was stated about them being for business and it is right. It is not covered,but you can have them for a hobby.
 
Also note that the person selling insurance is not the same person who handles claims (with most insurance firms) -- the adjustor/claims person is the one who will be looking and asking about business connections and may ask about your income taxes, sales taxes, etc.

If you have or have had as business license (to collet and pay sales taxes) you may well find that your coverage may not be as good as you think. Seen some get caught.
 
From the AAW web site

New AAW Sponsored Insurance for your personal business activities

This is an important announcement from the AAW. Our commercial insurance program has changed, effective May 18, 2009.

Most professional turners know that their homeowner's insurance policy does not cover their private business activities, inventory, teaching, equipment and property. Most of them have either done without insurance at great risk, or at great expense and effort, have found an agent to cover them. On the other hand, most of the rest of us assume that our homeowner's policy insures us even if we do some sales of our work or occasional teaching or selling tools or videos. Laws that regulate insurance vary from state to state. In North Carolina, it used to be that activities that were occasional in nature and did not amount to a "substantial" amount of income were covered by one's homeowner's policy. A few years ago, it changed to say that "any" activity that was commercial in nature, no matter how few dollars were involved, was not covered. That means that if someone came to my home to buy a piece and was injured, or if my shop burned, or my tools were stolen, or I taught a private class, I would not be covered. Each member should check with your own insurance agent to see if all of your activities are covered by your homeowner's insurance policy.

As a service to our members, the AAW has sought out a new insurance program that individual members can purchase at reasonable rates to cover their commercial activities of woodturning. The program that we have found, can insure AAW members in all states of the USA. If someone can recommend insurers that will cover Canadian or foreign members, please let the AAW know.

AMJ Insurance, Inc., a well-respected national firm offers the policies that the AAW is sponsoring. They have been offering similar policies to members of the American Crafts Council (ACC) for several years. AMJ Insurance will primarily use national insurance companies like Travelers, The Hartford, and others. The AAW endorsed program offers specialized policies that can be customized to fit the needs of our member businesses. These policies can include coverages for:

* Business Contents coverage for shows
* Goods in Transit
* Loss of Business Income
* Accounts Receivable and Valuable Papers
* Goods on Consignment
* Liability -Premises and Products
* Coverage if you teach classes
* Coverage if you sell tools or videos
 
Insurance

In most cases, home owners insurance will cover common shop tools and unless they are very expensive they will be covered under the "contents" portion of your homeowners. While most homeowners policies issued today insure the building at replacement cost (or will if you ask for it) they will only pay depreciated value for the contents. That will be considerably less than the NEW replacement cost. The insuror's position is that you used up most of the value. I'm not sure you can even get a rider that would cover them at replacement cost...No insurance company wants to make it more profitable for you to burn your house down than to sell your tools.

Business use is probably not a factor UNLESS you are claiming depretiation or have claimed a 179 expense for the tools. In that case, you probably should insure them with a separate policy. Personally I just have a list of what I paid for them. Since few of them are "business" tools that's all I need. My problem is Inventory, if my house burns down it isn't covered.
 
When I first started selling a few pens, I looked into the AAW related business insurance. These policies all start at $500 per year minimum, which is more than I make from the "business". So I'm self-insured for now. Liability is what I worry the most about, but I've yet to hear of a case against someone selling pens. Anyone out there have a story to tell?

Dave
 
Home owners...

Dave Turner said:
When I first started selling a few pens, I looked into the AAW related business insurance. These policies all start at $500 per year minimum, which is more than I make from the "business". So I'm self-insured for now. Liability is what I worry the most about, but I've yet to hear of a case against someone selling pens. Anyone out there have a story to tell?

Dave
Click to expand...
Chat with your agent....if you are selling "out of your vest pocket" your homeowner's liability probably covers it. If you're doing shows you might need to get a rider for each show. For most small sellers the liability risk is very small.
 
Just to be careful, I got a business use rider on my homeowners policy for my shop for $20 a year to get $25K of coverage.
 
here in TX most of our insu have been Loyd's of London as replacement value when ever I have lost a tractor of big tool it get 80 % of new cost paid up front and the other 20% pd when I replace it .

used Liberty for years but being out of the city they are costly now with Rockford
 
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