How to value older tools

[txestrella]

I had a catastrophic fire at my home and insurance is replacing my tools at the actual replacement cost. How do I value older (50s-90s) snap-on, craftsman and other tools in order to replace them. I have multiple toolboxes that were destroyed from the 50's to 2000s and then my older hand tools: chisels, planes, files, rasps, rifles and gouges- some are from the turn of the century.
I know that to replace them- the majority are not home depot quality but (woodworking is what I know mostly) lie-nelson and other higher end stores type tools.
Does anyone know how they would value stuff like that? I don't want to use ebay and such because in order to actually replace the tools it would be more expensive. I was literally a tool hoarder, 40+ hammers, boxes and boxes of wrenches, screwdrivers, sockets etc, plus my father-in-law was a metal fabricator and I have zero clue about his tools.
Thanks,

 

[Ricky Joe]

If it is a guaranteed tool, replacement value, because you can get it replaced if it fails. Obsolete but common tools such as Bonney, Herbrand, etc., I would value at eBay sold prices. Specialty tools I would say would be based on what you feel you would be willing to pay for them. My two cents.

 

[Nutria]

Ugh, sorry that happened. It's a bummer. I had the same experience, courtesy of a wildfire. A few thoughts:

- You have replacement value on contents-- good! If you have a top-of-the line tool that is old, it's completely reasonable to list replacement value top-of-the-line costs based on new high-quality tools. The carrier will probably do a blanket depreciation, but you should start with new replacement cost.
- You can probably also negotiate that percent depreciation- no need to go with what percent they initially want to use. You may be able to negotiate their depreciation down, say, from 20% to 10%.
- Not that you would, but I do not recommend inflating values. I know a guy who did that. He got away with it, but if the carrier catches on, my understanding is that they can disavow your entire claim. So, both unethical and risky in my opinion. But make sure to not cheat yourself either.
- You can "bundle" estimates of groups of tools vs doing it one tool at a time. A "socket set," for instance.
- We turned out to be, to our surprise, about 20% underinsured on contents. Once I was able to convince the carrier that we would easily meet our coverage max on contents, the carrier issued us a check for the max. At that point we could spend the money on whatever, and it saved the hassle of itemizing all of the contents.

Hang in there. You will push through this and have a good shop again.

 

[txestrella]

Thank you so much for the advice, especially on how to value my older tools for replacement cost.

 

[dscheidt]

- You can "bundle" estimates of groups of tools vs doing it one tool at a time. A "socket set," for instance.
- We turned out to be, to our surprise, about 20% underinsured on contents. Once I was able to convince the carrier that we would easily meet our coverage max on contents, the carrier issued us a check for the max. At that point we could spend the money on whatever, and it saved the hassle of itemizing all of the contents.

I have increased the coverage of personal property, largely because of tools. Agent kept insisting I didn't need to, until I gave her a photo inventory, and the actual replacement cost of stationary power tools and a few of the easier to value wood working hand tools. (We've changed carriers since, new agent's initial quote didn't include that increase. Not sure if that's because he's an idiot or a "the lower price will get them" sales tactic. Which ever, it was corrected.) I expect a fight if I ever have to make a claim.

 

[Garcky]

What bad luck! It will be a lot of work to assign values to older tools, I think. In the end, the insurance company is probably going to try to low-ball their payout. They don't understand tools, pretty much. I'm not sure what the best approach should be, but eBay sold values, if there are enough of them, should help you on the older stuff. Still, you're probably not going to like what they want to pay you. How far you take it in disputing their valuation is really up to you.

 

[Professional Tool User]

Usually with tool insurance, you have to submit an itemized list and maybe some estimated replacement values to the insurance company. That would make things a lot more straight forward. I'm not sure if this is the case in your situation or not. If they accept your claim, you're going to have to haggle if there are any negotiable areas. I'm assuming depreciation will have to be factored until unless your policy covers full replacement value. YMMV. I've heard from my auto insurance broker that he had a client who got away with showing the insurance company some craigslist listings of the same vehicle he totaled.

 

[seber]

Replacement value in insurance terms means replacing with brand new same quality. That is why it costs more. twenty year old Snap-on replacement value is new Snap-on price.

 

[dnschmidt]

Say you have a set of Bonney wrenches. Well I think Bonny would be at a level of Mac or Proto. Use the current value of the Mac/Proto set as the value of the Bonney set.

 

[captain14]

We’ve had a 2-3 GJ members that have experienced losses similar to yours during fires. They have documented some of the process in their threads. Maybe try to search via the web and add Garage Journal as part of the word search term. I know if you are searching for something and add garage journal you will get multiple hits.

 

[RTM]

Do this


Site:garagejournal.com fire insurance


And it will trim down to only this site. Pick your search terms.

 

[tarbellb]

What a unfortunate event to deal with, sorry bud.

Also why I have specific insurance on my shop, with a large coverage #

And regardless of how much you "like" your insurance, be prepared to haggle the amount