Garage Condo -how to insure

[67-ls1]

I'm hoping someone has come up against this issue and can guide me.

I bought a 60x25 commercial condo to use as my hobby shop/man cave. The garage at my house is too small and occupied by my wife's car every night. I moved all of my car related stuff to the condo. I do NOT run a business out of the building.
For others that have condo garages or remote mancaves, etc, what do you do for insurance?
I have been trying to find an insurance policy that will give me general liability, fire and theft. It is a condo so the building is covered by the association.
Every insurance agent I have talked to tells me I need a business policy even though I do not run a business out of the shop. I even tried Hagerty because they offer policies for complete collections, and they said no.
I am concerned that a friend gets hurt or I have a fire or it gets broken into.
HELP!!!

 

[Dick in Wisconsin]

Have you talked to your current homeowner's insurance agent? That is where I would start.

What do other owners in the condo association do?

 

[67-ls1]

I did talk to my agent. He said to get a business policy.
All the other units in the building are occupied by businesses. I'm the only one using it as a personal space.
But I see these garage condo projects popping up all over the place. There has to be a policy available somewhere.

 

[The Cobbler]

get a price on the commercial policy, you might be surprised at the rate they quote you. Likely since it's a commercial complex and not a residence is the reason you can't get a homeowners policy

 

[67-ls1]

I did get a quote for a business policy. Not exactly inexpensive since it includes proffesional liability (errors and omissions) etc. and the first things they ask are things like how many employees (0), annual sales volume (0) and your business license number.
This could also be an issue if I had a claim because the policy would not be for what I really do in the space.

 

[Big Dad]

Tax number would be cheap easy, call it a business

 

[LXCam]

I did get a quote for a business policy. Not exactly inexpensive since it includes proffesional liability (errors and omissions) etc. and the first things they ask are things like how many employees (0), annual sales volume (0) and your business license number.
This could also be an issue if I had a claim because the policy would not be for what I really do in the space.

You must have been talking with someone who didn't have a clue how to deal with insurance. An E&O policy, really?. I don't remember how much my policy was for my condo, but it sure wasn't much or I'd be able to tell you.

Something to consider. Start an LLC for your car antics. Then all cost associated with all of it would be deductible and you could get a simple commercial policy.........just a suggestion.

 

[motofool33]

my renters policy covers mine for now

 

[67-ls1]

LXCAM, I have called every company I can think of. The E&O is part of the business policy. I tell them I don't need it and they tell me it comes with it. Most won't quote me when I explain what I do in my space.
LLCs in California are approx $1000/year to maintain so that doesn't work either.
The few business policies I did get quite on we're both over $2k/year. Crazy money for a hobby shop.

 

[67-ls1]

my renters policy covers mine for now

Yeah, if I was renting, this would be a no brainier. I can get a policy cheap.
Thanks,
Dennis

 

[motofool33]

Yeah, if I was renting, this would be a no brainier. I can get a policy cheap.
Thanks,
Dennis

I'm not renting and I'm covered check into it.

Sent from my SAMSUNG-SM-G900A using Tapatalk

 

[Mr. Welsh]

Why can't you just add the contents of the shop to your homeowner's policy?

 

[67-ls1]

That's the first thing I checked. But because it is a separate property and I own it, I'm told it needs its own policy.
Same agent told me that if I had items in storage at a rented storage facility, they would be covered but there would be no liability coverage.
With as many of these condo garages that are popping up all over, I can't believe everyone starts a business to get insurance or goes without.

 

[sealbyte234]

That's the first thing I checked. But because it is a separate property and I own it, I'm told it needs its own policy.
Same agent told me that if I had items in storage at a rented storage facility, they would be covered but there would be no liability coverage.
With as many of these condo garages that are popping up all over, I can't believe everyone starts a business to get insurance or goes without.

What did you end up doing? Where you able to find an insurance company that would provide the insurance you seek? If yes, which company?

 

[Ipassgas]

Rent the space from yourself. Get a renter's policy. Get an umbrella on your homeowner's if you're still worried about liability.

 

[rburke65]

Well if “these are popping up all over the place”, trust me, there’s an insurance company out there that will write a policy. They will insure dog **** if you cough up the money. Keep looking and calling.

 

[dcg9381]

With USAA, I had to insure my shop under a "rental policy". I questioned this up and down, but it was largely the only way to insure the contents. As they explained it to me, they consider it rental space where I pay $0.00 rent.

The physical shop itself, I had insured as "other structure" for a period of time while the house was going up. The house was covered under builders risk.

After the house was complete, the shop becomes an "accessory structure" that I can insure (at set value) and the total of the contents in shop and home are covered under homeowners.

 

[SILVERPLATE]

If it’s a complex with other units, what is everyone doing. Car condo complexes seem to be a growing trend in many areas.

 

[My Old Tools]

Check with companies that insure farmers. They often have remote buildings that have all kinds of equipment in them.

 

[TUHurricane]

A personal inland marine policy would cover the contents in the event of a fire, theft, etc. It would not cover the building itself, but it sounds like that is covered by the association. A personal umbrella policy should cover you for liability if your homeowner's policy would not cover you for some reason. There are insurance companies that will provide quotes for this coverage online.

 

[theoldwizard1]

If you store used parts for restorations, they have ZERO value !

All tools should have photographs and a spreadsheet indicating purchase date, location and price.

 

[Adaylate]

We have a 9 acre piece of property with a few out buildings on it, we don't live there but would like to build there someday. I wanted liability insurance on it. Insurance company wouldn't cover under my home owners ins, not even a new home owners policy. They finally wrote a commercial farm policy for it! The price of the policy doubled this year! No claims, just doubled! They are researching if there is another way to write this.
Good luck with your search!

 

[67-ls1]

So in my case the unit is not on the same property as my house so my homeowners policy covers nothing. If I was renting the space my contents would be covered and I could add it to an umbrella for my primary residence.
But since it’s remotely located and I own it, it needs its own primary policy. You can’t umbrella over a non existant policy.
I have had zero luck. I have a commercial policy and I’ve documented the **** out of the fact that I've let them know it’s not a business in case they try to say I got the wrong coverage if I ever had a claim.
Its expensive because it covers a lot more than I need.
I have thought of renting it to myself but if I ever had a claim they could say that’s a pretty clear scam.
I have called places all over the country that are selling these “garage condos” and asked if they knew of any insurance product.
Crickets.

 

[sh944]

I have my garage condo covered by Liberty Mutual, not the greatest coverage perhaps but they’d at least write a policy on it.

 

[PoorUB]

I have thought of renting it to myself but if I ever had a claim they could say that’s a pretty clear scam.

I don't know about that!

I worked for two different companies and the owner owned the property and rented it back to the business. It is very common in the business world to rent to yourself.

The worst part is you would probably have to form a LLC to own the property and then that might add to the expense.

 

[dcg9381]

For others that have condo garages or remote mancaves, etc, what do you do for insurance?
I have been trying to find an insurance policy that will give me general liability, fire and theft. It is a condo so the building is covered by the association.

When we built our shop (40x60) - it was the only structure on property. I did not want want it to be considered "residential". What USAA told me was that I needed to have it covered under a renters policy. I clarified that several times - as we own it - apparently that's how they do it in terms of content replacement. I wasn't concerned about liability, as the property was otherwise covered under builders risk.

Once the house was up, the "barn" is covered under "other structures". You need to watch your policy limits (make sure you have enough coverage) - but my home liability covers the entire property and essentially covers the contents (once the home was up).