Is your Garage (and you) protected?

[woodrail]

Last night near my home about 10 pm, A guys home auto shop basically burned to the ground. 25 fireman fought it for 2 1/2 hours to knock it down.

The guy lost $100 grand in the garage and $100 grand in contents. Although that is a notch above what I have, I suppose many members here either have that kind of investment or close.

I currently have a $25 grand policy on garage and contents. I probably need to up that.

Bad day for this guy. http://chronicle.northcoastnow.com/2013/09/20/fire-engulfs-garage-in-north-ridgeville/

 

[PCO6]

No matter what anyone says here, one way or the other, you have to satisfy yourself by confirming your coverage with your agent.

 

[woodrail]

and what happens when the agent discovers your "buddies (customer)" vette in your shop getting new brakes when it burned?

Hmmm....

Covered for that?

 

[Falcon67]

Most home policies here cover accessory buildings at 10% of the main dwelling. Contents are covered separately.

 

[jimindm]

I am set up as a business and am insured as such. This does not pertain to me.

this is a very good post that I think many need to think about. Even as falcon said above if you have 200K house/property, that's only 20K on the garage. Have you looked at what it cost to rebuild what you have?

I read post like these and wonder on a general home owners policy, how does a person insure a hoist, a large compressor, etc? If there was a total loss, how far would the insurance company look. Are you operating like business? Charging people for car work? If you were working on a car and the shop burns up, how far does that persons insurance fight you.

I think that reading something like this many should go over the safety issues in their garage. Do have extinguishers? Are they functional, marked where they are, easy to get to? Questionable electric run to create more circuits? Pilot lights or motors that are low to the floor? Emergency lighting in case of power failure? Fuse link for solvents or a flammable storage locker?

I am sure that if I did not have an annual fire inspection done by the FD, some of these things would slip my mind.

I knew a guy once that had drip pan of fuel catch on fire. He went and looked for the extinguisher that he hung by the door when he built the garage several years earlier. Did not see it right away, and ran for the house to get one. He got the fire out. It only ruined a cheap plastic drain pan. Afterwards we even talked about him not having an extinguisher in the garage. We decided to call in a night. Guess what he hung his coat over everyday.

Not only check your insurance, do a safety walk through also.

 

[Steevo]

Most home policies here cover accessory buildings at 10% of the main dwelling. Contents are covered separately.

^^ This is precisely what my insurance company told me last week when I looked into this myself.

They also told me that I could not buy "arbitrary" dollar amounts of additional insurance, but could buy contents coverage IF, I completely inventoried and video-documented the contents to be covered, provided receipts and date of purchase information for everything, etc., etc.

Looks like if I have a complete melt-down, I may get a new structure.

 

[jimp]

Been there, had a separate policy for the shop and my home owners covered the contents. $250,000 total, State Farm is a great company.

You do need to talk to your agent. As said before, once something has been installed it is not covered by home owners, it's auto.

 

[Openboater]

As has been said, grill your agent. He or she will have the answer. My building, which is a barn shop combo, is insured for at or near replacement.

 

[justanengineer]

Ive got an agreed value/payment policy. If anything happens I know exactly what Im getting - slightly more than I have out there.

From the pics Id question the $200k number, but then again I also cant imagine too many folks have that much in their garage with contents. I have about $10k if you count everything including the machine tools, maybe $30k if you count all three vehicles, toys, lawn equipment, and the woodworking tools in the basement too. Most of my stuff is old and cannot be replaced, and no, I wont be trying to get new SO to replace vintage Plomb, Cman, or JH Williams.

 

[jimindm]

Ive got an agreed value/payment policy. If anything happens I know exactly what Im getting - slightly more than I have out there.

From the pics Id question the $200k number, but then again I also cant imagine too many folks have that much in their garage with contents. I have about $10k if you count everything including the machine tools, maybe $30k if you count all three vehicles, toys, lawn equipment, and the woodworking tools in the basement too. Most of my stuff is old and cannot be replaced, and no, I wont be trying to get new SO to replace vintage Plomb, Cman, or JH Williams.

You may be right on the garage, but I would argue the value of the contents. When people say they have a loss, it usually means in replacement value.

I have a 24X30 fully insulated garage. My guess is about 20-30K to rebuild it. There is no way I could even put a price on the contents. 100K would add up fast. Tool boxes that are 10K to replace on there own. Welders, stand up compressors, scan tools are all expensive. SO tools are expensive $100 ratchets, $500 impacts, $300-$400 wrench and socket sets. Floor jacks, jack stands, benches.

$100k sounds like a lot, but think about it that is 1000, $100 items. Or just 400 $250 items.

I know that 30 years ago I spent $50 a week on the SO truck. At least 2-3 times that now, depending on balance.

I think many underestimate the value of their tools. It does not take much to add up to thousands.

Before I started working at home, I made sure my tools were insured where I worked. When interviewing for the job, I always asked about responsibility and proof. Some owners would stammer at the question, others would be ready to show proof.

I think so far in this thread its only been mentioned about a loss of the personnel garage. How many know what happens in the case your job has the same total loss. Is there coverage for your equipment and tools? Is it just the minimums that would cover the shop only? Would your employer be the type to help you replace it, so you could go to work somewhere else while he rebuilds.

You do have some control over where you live, and so far fire has only been mentioned. There is all kinds of losses that can occur. Natural disasters such as flooding, hurricanes, tornadoes, wind, wild fires happen every day.

Some one may never back a pick up into your garage and load it all out in the middle of the night, but what about work. Are you covered? It would be tough to suffer a total loss in circumstances that you have control over, it would tougher to have a loss that you have nothing in your control.

 

[stingry]

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My Barn/Shop burned in February of 2011. I will share some of my experiences with you and possibly give you some ideas for preparing for a fire or other loss.

I was (and still am) insured with Farmers Mutual of Nebraska under a homeowners policy. The barn was insured for $42,000 which was the max allowed for an accessory building. This was probably a little short but since we are selling the property, we did not replace it and that as probably all it would have added to the value of the property. The contents were covered under the contents portion of the policy.

I was restoring a 68 Chevelle SS396 and it was lost in the fire also. It was insured by Grundy with an AGREED VALUE (very important) policy. Once an adjuster confirmed the loss, they paid the agreed value on the car.

Here's a few important points that I learned along the way:

1. Take pictures of everything (luckily I did) and keep receipts. Not only will this prove your loss but will serve to remind you of lost items when you start to inventory your loss.

2. Make sure you have REPLACEMENT VALUE coverage otherwise the insurance Co will depreciate your tools, equipment, etc and pay the depreciated value only.

3. Vehicles, car parts and accessories, etc are generally NOT COVERED under your homeowners policy. The vehicle needs to be covered by an automobile policy

4. Do not expect to get a check for the full amount of your loss. What my Ins. Co. did was give me a check for 35% of the loss and then paid the difference as I replaced the items. Some items, such as antiques, they paid the replacement value and did not require replacing them. I had several tools that I did not need so I negotiated a 55% cash settlement.

5. As stated above, you would be surprised at the replacement value of your tools and equipment, I thought mine to be in the $50k range, ended up being over $100k.

6. The best preparation, at least for fire, is prevention! My fire started by spontaneous combustion in a wooden storage cabinet that I stored all my paints, reducers, etc in. I kept in clean and orderly (no oily rags!) but apparently something leaked and created the perfect condition for combustion!
STORE YOU COMBUSTABLES SAFELY!!!

7. Also, as stated by others, sit down with your ins. agent and go over your policy, don't ASSUME that you are covered.

Cheers
Steve

 

[trainman1385]

I am an insurance agent, you need to talk to your agent, most policiues will only cover accessory structures to 10% of the amount insured unless you specifically request higher coverage. If you insurance carrier can't do this you need to find a company who can. A friend of mine lost his garage to a fire, because it was insured properly by me, the garage was rebuilt and everything was covered. If you are making money in your garage from work you are doing that is not incidental you need to have a commercial policy for liability and property coverage, otherwise you will be hosed when you have a claim. When it comes to insurance you will get what you pay for and not a cent more,literally and figuratively speaking

 

[zack99]

I'm going to offer slightly different advice here and suggest you read your policy. The policy is a legal agreement between you and the insurance company.

My insurance agent sells policies for a number of companies. She is personable and is great at finding the coverage I want at a reasonable price. I don't expect her to play lawyer on my behalf and interpret a simple legal document. It's all there for anyone who cares to read it.

In case of a disagreement between what is in the policy and what you think your agent told you, which do you think is legally binding?

 

[Dave in Mass]

I am an insurance agent, you need to talk to your agent, most policiues will only cover accessory structures to 10% of the amount insured unless you specifically request higher coverage. If you insurance carrier can't do this you need to find a company who can. A friend of mine lost his garage to a fire, because it was insured properly by me, the garage was rebuilt and everything was covered. If you are making money in your garage from work you are doing that is not incidental you need to have a commercial policy for liability and property coverage, otherwise you will be hosed when you have a claim. When it comes to insurance you will get what you pay for and not a cent more,literally and figuratively speaking

Sorry if I missed this, if the garage is attached, is that generally still considered and accesspry structure?

 

[trainman1385]

if its attached its included in the home , if its not attached then it isn't included. Yes you can read a contract to see if its covered, but its your opinion. I would still recomend asking your agent and then asking if its their personal or professional opinion and to have them put it in writing. I have seen to many agents screw their clients over during the last 16 years I have been an agent

 

[Pat Brady]

I'm covered, thanks.

 

[pepi]

and what happens when the agent discovers your "buddies (customer)" vette in your shop getting new brakes when it burned?

Hmmm....

Covered for that?

He better have coverage and as with your car, just cause a car is in an insured garage, gets destroyed the car is not covered. You could be sued by the owner for the replacement. Cars are a separate deal, same goes for tornados, floods in order for a car to be covered it must have full coverage or you are SOL.