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Do you have extra insurance for your machines/tooling?

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I haven’t looked into it yet, but as I sit here in Tucson sipping coffee, I worry about the security of my empty home in Northern California.
I’m sure most of us,have in excess of, $30,000 worth of tools and machinery in the shop.
I am curious what some of you have done insurance wise. If I had a theft or a total loss, I have replacement value up to a certain amount. If a few pieces were stolen, I would be out some money for sure.
I have taken pictures and videos of my tool inventory for a record.
What are your thoughts?
 
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Comments

#2
I have my machines as listed items on my homeowners policy.
 
#3
As a mechanic my hand tools and such are covered through my employers insurance. About 50k in tools. For my house I have about the same in mechanics tools. Then a full wood shop,welders,machines and tooling to go along. I also have a rare car with low low mileage I keep in the garage.
If my garage went up I would probably max my homeowners insurance policy out. I have also taken pictures of every drawer and machine in my shop. The only reason why I haven’t bumped up coverag is they will just charge you more. The homeowners policy should cover unless you have way more tools than house is worth. And I’m SICK AND TIRED of givin money to insurance companies. I’m 40 and have multiple cars,motorcycles. Between cars,house,health,injury policies that I have NEVER made a claim. I’m sick of giving my money away. Yeah,yeah I know you might need one day “my mother is a State Farm agent”. At least give me some rebates or somethings for never making a claim in 30+ years.
 
#4
A few years ago I asked my agent about extra coverage for my guns. I chose not to due to the staggering extra cost.
That’s why I am hesitating and asking for a consensus
 
#5
A few years ago I asked my agent about extra coverage for my guns
Join the NRA. Comes with some included coverage with more available for probably much much less than your insurance quote.
 
#6
I never thought of the NRA.
I am a long time RSO /Member of the NRA.
I’ll check it out for my firearms.
Thanks
 
#7
Hi Guys,

A number of years ago My workshop was broken into and around £24K worth of electronic equipment was stolen ! I had it separately insured, as it happens for 25K, all listed, serial numbers, the lot. The police basically did nothing other than give me a crime reference number. The insurance company looked at the claim and decided that since the bulk of my equipment had been purchased at auction it had no value. They only agreed to pay out for a third of the insured value, and that was only after I threatened to sue.

As far as I'm concerned insurance companies are thieves and robbers. The only insurance I buy now, is that, I am legally obliged to have.
 
#8
So homeowners wouldn't cover unless you get extra insurance? I have valuable guitars, guns and of course... tools. I had no idea these wouldn't be covered. WTH is covered?! Hopefully my Picasso collection!
Seriously, I will have to look into...thanks for the info!
 
#9
My USAA policy is so robust that it covers my machine tools even if they are at a friend's house or a storage unit. Guns too. That's their default coverage. I interrogated the agent about all sorts of scenarios and read the fine print. Pretty fair deal. They cover my property, and that's that. Flood and fire are separate policies, by convention. Haven't had any claims yet.

(from mobile)
 
#10
Hi Pontiac,

Be sure to let us know if you do have to make a claim !

Salesmen can tell you anything to get a sale...
 
#11
So homeowners wouldn't cover unless you get extra insurance? I have valuable guitars, guns and of course... tools. I had no idea these wouldn't be covered. WTH is covered?! Hopefully my Picasso collection!
Seriously, I will have to look into...thanks for the info!
With my insurance company, if I had all my guns stolen (not listed separately on the policy) I would be reimbursed $2,000. I have a $1,000 deductible. The cost to list them would be over $1,000 per year.
That is my experience anyway.
 
#12
I have a separate shop building. My insurance agent (whom I kinda trust) advised me to list a declared value on the contents of the shop (which is listed as "out building") but not to list or itemize the contents. She said that was about the best coverage I would get at reasonable cost.

Still, I have a feeling that if it is hit by a Kansas tornado (or otherwise totaled) a fair settlement will be hard fought - or worse.
 
#13
As a mechanic my hand tools and such are covered through my employers insurance. About 50k in tools. For my house I have about the same in mechanics tools. Then a full wood shop,welders,machines and tooling to go along. I also have a rare car with low low mileage I keep in the garage.
If my garage went up I would probably max my homeowners insurance policy out. I have also taken pictures of every drawer and machine in my shop. The only reason why I haven’t bumped up coverag is they will just charge you more. The homeowners policy should cover unless you have way more tools than house is worth. And I’m SICK AND TIRED of givin money to insurance companies. I’m 40 and have multiple cars,motorcycles. Between cars,house,health,injury policies that I have NEVER made a claim. I’m sick of giving my money away. Yeah,yeah I know you might need one day “my mother is a State Farm agent”. At least give me some rebates or somethings for never making a claim in 30+ years.
You might want to reconsider your insurance situation. If your employer is like most they have a blanket policy for covering employees tools. The policy usually covers $XXX.XX amount for the entire shop. That means if tools are stolen each employee that sustains a loss shares equally in the insurance payout. Also the amount the employers carry is likely to cover only a small percentage of the total value of the employee tools in the shop at any one time. This type of insurance is usually used as a draw for new employees rather than for providing adequate coverage if the shop is broken into and tools are stolen.

Many years ago a shop I worked at was broken into. Several employees had tools stolen. At that time the company only had $50,000.00 coverage for employee tools. The thieves stole nearly $100,000.00 worth of tools from several employees. Each employee was eligible to claim up to $5,000.00 or the cost of replacement tools, whichever was less. I was the hardest hit and happened to lose over $20,000.00 in tools. Due to the size of the loss and the way the policy was written I could only regain 25% of my losses. In addition when making a claim I would have had to sign an agreement not to hold the company responsible or make any additional claims against the company. In the end I opted not to make a claim and forfeit my rights to future claims should this happen again. Needless to say the experience hastened my search for new employment, and made me be aware of what insurance coverage to ask for in the future.

As for your home insurance the value of the contents covered is usually calculated as a percentage of the cost of the structural damage. If your garage burns down and it costs $30,000.00 to rebuild the value of the contents will be valued as a percentage of that cost, not a percentage of the cost to replace the entire house and garage. Like most on the forum the cost to replace the tools and other contents of my shop far exceeds the coverage included for "contents" . I carry a rider to cover the additional cost. Also contrary to some thoughts the cost of the rider is minimal.
 
#14
. . . Like most on the forum the cost to replace the tools and other contents of my shop far exceeds the coverage included for "contents" . I carry a rider to cover the additional cost. Also contrary to some thoughts the cost of the rider is minimal.
I think that is the same as what I do. I pay a little extra (very little) for more contents coverage than is the policy's default amount.
 
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#15
When we purchase insurance, we discuss the "policy" with the agent. When we have a claim on the insurance, the insurance company will only talk about the "contract" that we signed. Read all the fine print carefully and make quite sure you really understand the legal details. Keep the word "policy" out of the discussion. Get your questions answered in writing if necessary, without words like "policy."
 
#16
Forty years ago, I inquired into the cost of insuring my antiques. Sure, no problem, bring us a list, with valuation, and documentation of the value, and pay us 5% of the value per year. (Fine Arts Rider). Had I opted to insure my fine arts, I would have paid for them twice over in the last 40 years, and had no losses to claim.
 
#17
Forty years ago, I inquired into the cost of insuring my antiques. Sure, no problem, bring us a list, with valuation, and documentation of the value, and pay us 5% of the value per year. (Fine Arts Rider). Had I opted to insure my fine arts, I would have paid for them twice over in the last 40 years, and had no losses to claim.
Yes, that is exactly my quandary, concern, reluctance.
Ok, I get it, I was hoping to find a new idea or a company that specializes in our situation.
 
#18
Hi Pontiac,

Be sure to let us know if you do have to make a claim !

Salesmen can tell you anything to get a sale...
And, if you make a claim, depending on the value, they can and will decline to re-insure. At that point you can no longer get insurance in the regular market. You will be in the mid or high risk market with premiums 3 to 10 times your regular rates.
 
#19
I ask God to protect all of my assets and I have no fear that he cannot and will not honor my request---the law forces me to have car insurance, and even though I have never had an insurance claim in my 74 years ----they keep raising my premiums.---fear is what drives a person to be worried about losses---Gods ability and assurance is bigger than fear.---I also have machines and tools and assets in another shop 40 miles away but have no fear
that they aren't protected----Dave
 
#20
I live in a different country, with different morals, here no one has even house insurance, no alarms and security cameras, many of the household don't even lock their doors at night, but is a tight community any person or car from side is immediately noticeable and thieves get caught and get what they deserve so other don't evan try, best advice i can give is invest in neighborhood watch or in a WIFI alarm those are biggest deterrents for thieves.
 
#21
Irreplaceable items are just that- invest in alarms, chains, heavy doors. Don't waste money on "insurance"
m
 
#22
While I'm sure there are some very determined thieves out there, they aren't that common to have the rigging and trucks to load up and haul away lathes, mills and other bigger equipment that weigh several tons. Short of someone wanting to steal the equipment for their own shop, there's a lot of other stuff in people's homes that will get loaded out before that stuff.

For me, insurance would be more about loss via damage (fire, vandalism, natural disaster).
 
#23
Hi Guys,

A bloke that I knew, kept spiders, big ones, very big ones, in his workshop ! He used to let them walk on him. He tried and failed to persuade me to handle one. No thanks ! Gave me the willies. I reckon anyone breaking into his place wouldn't have stayed long.
 
#24
My experience with a fire loss of guns with State Farm insurance is the home owners policy will only cover 2 guns up to a certain amount. Anything more has to put on a rider policy and is at a premium cost.
Another thing we found out with heirlooms and antiques is that they will only pay for modern replacement value (with replacement policy) unless you had them appraised and/or documented in a similar way as to their true value.
Pictures help, but it was my experience that they don't have a "Total Loss" statement in their policies and you have to itemize everything right down to all your dirty underwear and then go price replacements up to the maximum of your police or they won't pay.
Just like big business, they're glad to take your money, but you'll play hell getting a dime from them.

My advice would be to take pictures (make sure you have a secure cop not in your house, they burn too) and talk to your agent.
Don't take his/her word for it make them put it in writing. I'll bet they'll tell you anything you want to hear, but will baulk at writing it down or at least amend their earlier statement that you're covered.
 
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