Shop insurance question

Shop insurance question

Joined: March 8th, 2004, 11:48 pm

March 14th, 2018, 2:01 am #1

By the end of the year I will have a large workshop filled with tools it would cost money to replace. This is new to me since I have usually had small spaces and junky tools. How do you get insurance on such things? The shop will be attached to my house and primarily be a hobby wood and metalworking shop. Occasionally a friend will come over to work on one of his projects or help on mine. So what sort of insurance do I need and where do I get it?
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Joined: October 8th, 2014, 2:05 pm

March 14th, 2018, 11:17 am #2

If it's not for a business, you can probably have a rider added to your homeowner's / renter's insurance policy to increase the coverage on the contents of your home and associated buildings. Asking your insurance agent about your options is a good place to start.
If it ain't broke, I'll fix it!
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Joined: December 20th, 2016, 1:30 pm

March 14th, 2018, 11:26 am #3

hinermad wrote: If it's not for a business, you can probably have a rider added to your homeowner's / renter's insurance policy to increase the coverage on the contents of your home and associated buildings. Asking your insurance agent about your options is a good place to start.
Ask different agents.  I was in the same situation and found a company with better coverage and cheaper than my house insurance.
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Joined: October 10th, 2014, 3:09 pm

March 14th, 2018, 1:10 pm #4

Insurance cover is often 'new for old' so the covered value for tools can be astonishingly high, which is reflected in the premiums.

In the UK, there's a specialist insurance company Walker Midgley, who offer 'old for old' cover, which is much more affordable. You do have to have a good valuation and you might need the services of an auctioneer/valuer.
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Joined: November 30th, 2014, 1:36 am

March 14th, 2018, 4:14 pm #5

Mark-T wrote: By the end of the year I will have a large workshop filled with tools it would cost money to replace. This is new to me since I have usually had small spaces and junky tools. How do you get insurance on such things? The shop will be attached to my house and primarily be a hobby wood and metalworking shop. Occasionally a friend will come over to work on one of his projects or help on mine. So what sort of insurance do I need and where do I get it?
If I recall correctly my insurance quote was something like $100 for every $5000 value per year, so $25K coverage in tools would cost me $500 per year.  Since my shop is on my property I just made sure the structure was covered, added a burglar/fire alarm to the shop and lived with the $5K in basic coverage in my homeowner's policy.
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Joined: December 20th, 2016, 1:30 pm

March 14th, 2018, 11:04 pm #6

You might need to consider the value of old/antique tools.  I had picked up/inherited a bunch of them and there was no comparison to new tools. The handsaws and planes have very, very expensive modern counterparts.
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Joined: March 8th, 2004, 11:48 pm

March 14th, 2018, 11:37 pm #7

I am by far the oldest thing in my shop.
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Joined: January 1st, 1970, 12:00 am

March 15th, 2018, 2:38 am #8

Mark-T wrote: I am by far the oldest thing in my shop.
-I've got a 113-year-old Stockbridge shaper I'll loan ya, so you won't feel so bad.

... Assuming that goes back far enough. 😁

Doc.
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Joined: March 8th, 2004, 11:48 pm

March 15th, 2018, 4:18 am #9

Nah, I am good. I don't feel bad about not owning 100 year old tools, I just don't want to become one.
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Joined: September 16th, 2014, 7:01 am

March 15th, 2018, 5:24 am #10

If it's at a residence for private use you can get additional coverage reasonably. 

I tried to do the same thing for work hand tools on a work truck that gets driven to work sites, and it was the "We don't want to cover that" rate -  Way low coverage, way high premiums, way high deductibles, lots of wiggle wording.  And if you try to lie a little and use the personal rate above, they'll be glad to take your money for years till there's a claim - then they'll figure it out and deny the claim.
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