Suppose I wanted to inventory everything I have in my boxes to figure out about how much I've got invested in my tools and equipment, would you go ahead and figure out the worth by using the manufacturers list price, or what you actually paid for the tools?
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Tool Inventory
- Thread starter optikal
- Start date
dink
Well-known member
Go by MSRP....its the most secure method
That brings up a good point. I found out that my insurance has limited tool coverage of about $1000. I made a list and called my insurance company for more coverage. They added a rider to the policy for 25k of coverage. The extra cost is about $30/yr.
dink
Well-known member
djjack said:That brings up a good point. I found out that my insurance has limited tool coverage of about $1000. I made a list and called my insurance company for more coverage. They added a rider to the policy for 25k of coverage. The extra cost is about $30/yr.
I will also look into that thanks
danski0224
Well-known member
Insurance companies depreciate stuff, so... Better make absolutely sure you are covered. I would be very surprised if they pay out at MSRP for a replacement.
sberry
Banned
I have been down the depreciation road and they wanted to due that to the tune of about 3 k outa my pocket,, no way. I had a talk with the adjuster and they waived it. I told him I didnt buy anything that wasnt below market value or that wouldnt appreciate. If you would have bought a SnapOn wrench set 20 yrs ago cash even at list price, left it in the box today it would be worth,,, probably as good as the stock market or CD's anyway. If you got a discount when you bought it,, well you did pretty well over they years without opening a tool box? If its insured for replacement it dont matter what I paid for it. An accountant could figure this out, buy a closet full of new snappy wrenches, bargain for the price, put them away, could you make a return on resale???
Fast Orange
Well-known member
Cary-
Thats a nice thought,but how much of the increase in value is due to inflation,as opposed to appreciation?
As to insuring tools,an up to date inventory,copies of purchase reciepts and a replacement cost policy with adequate riders to cover the value is the way to go.
My home garage burned to the ground in 1986. I lost over $23,000 worth of hand and power tools and welding equipment. With a standard policy,I would have gotten about $12,000 for that part of the loss. With a replacement cost policy,reciepts and the remnants of the old tools,the adjuster had no choice but to pay the full amount.
George
Thats a nice thought,but how much of the increase in value is due to inflation,as opposed to appreciation?
As to insuring tools,an up to date inventory,copies of purchase reciepts and a replacement cost policy with adequate riders to cover the value is the way to go.
My home garage burned to the ground in 1986. I lost over $23,000 worth of hand and power tools and welding equipment. With a standard policy,I would have gotten about $12,000 for that part of the loss. With a replacement cost policy,reciepts and the remnants of the old tools,the adjuster had no choice but to pay the full amount.
George
Pitalplace
Well-known member
Made an inventory about 15 years ago and keep it updated with each new tool. The insurance guy said to take pictures also so when the new digital camera shows up I will be making a tool inventory CD
I've recently walked through the house/garage and made a video of all the items in my posession for this EXACT reason. However, while doing so I reviewed the tape and realized that there may be another reason the insurance wanted a visual..... Let's say I claim my XYZ tool is worth $400. They look at the picture/video and say "Yes that tool costs more than $400 to replace, but by the looks of your tool it's only worth $NNN.NN." Who would win??
Thoughts?
Any insurance adjusters/agents on the board?
Thoughts?
Any insurance adjusters/agents on the board?
Fast Orange
Well-known member
That's why you need a REPLACEMENT COST policy-no depriciation,no adjusted values-if they don't want to pay the $,they have to give you an exact or equal replacement
Didn't Snap-On (or some one on the behalf of SO) take this to court awhile back? Something about since Snap-on has a lifetime guarantee or full replacement that the insurance companies has to give full replacement value not the normal depreciated value?