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Technical How do you insure a parts for project.

Discussion in 'The Hokey Ass Message Board' started by mcmopar, Jun 10, 2019.

  1. mcmopar
    Joined: Nov 12, 2012
    Posts: 1,414

    mcmopar
    ALLIANCE MEMBER
    from Strum, wi

    I just opened up my insurance premium, to find that my garage is not covered by enough insurance. I called my agent and now garage is covered for what its worth. I then told him about my blown hemi project and wanted that insured, and he said he is not sure how to cover that. He has been a agent for 40 years he said and never been asked that. I have a fair amount of money into just parts, but not together yet. My question is how do you insure a project that is not together and wont be for awhile.
    Tony
     
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  2. Oldioron
    Joined: Dec 12, 2018
    Posts: 514

    Oldioron
    Member

    Auto parts are not covered by your home owners policy.

    I didn't realize this until I sold my shop.
     
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  3. Chrome Insurance (AMPAC) has a policy for project cars and is very inexpensive, I have had it on several projects over the years after a friend shop burnt to the ground and the only car that was covered was a tagged & licensed driver, 3 other nice projects, one nearing completion were not covered, he lost thousands and quit the hobby. HRP
     
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  4. squirrel
    Joined: Sep 23, 2004
    Posts: 42,001

    squirrel
    Member

    I "insure" hobby stuff, by being able to afford losing it.
     
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  5. mcmopar
    Joined: Nov 12, 2012
    Posts: 1,414

    mcmopar
    ALLIANCE MEMBER
    from Strum, wi

    I cant afford to lose a $25000 motor tranny combo because it wasn't in my truck at the time, and I don't think that there are many people that can. With your logic then while you were building you barracuda with the parts in shop you could afford to lose them, so you didn't have insurance on them then.

    My agent just told me the same thing and that is what started this process. He just informed me that he can put $20000 on parts that are not on the vehicle at this time, and is insuring the body and frame separately.

    I will also look into that. If I lost my shop and stuff inside I am not sure what I would do.
    Tony
     
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  6. 49ratfink
    Joined: Feb 8, 2004
    Posts: 17,089

    49ratfink
    Member
    from California

    insurance is placing a bet that your stuff will be stolen. if no one steals it you lose the bet.
     
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  7. squirrel
    Joined: Sep 23, 2004
    Posts: 42,001

    squirrel
    Member

    Yes. And I still don't have insurance on it (except for liability).

    I guess I'm one of the few folks who can actually afford this hobby?
     
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  8. Bandit Billy
    Joined: Sep 16, 2014
    Posts: 4,836

    Bandit Billy
    ALLIANCE MEMBER

    On my 34 I had some big dollars wrapped up in it years before it was completed. Haggerty had it covered the entire time. I had to send updated pictures and we upped the value as the build progressed. They have under construction policies that convert to driver policies later and they are not that spendy.

    I normally don't insure them until they have to roll out of my place for paint, interior or whatever. I heard a buddy of mine say last week that a tree on the neighbors lot fell over and hit a couple of cars at his paint shop doing major damage. Should be the neighbors issue, may fall under the paint shop's policy but Haggerty would have paid if all else fails.
     
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  9. morac41
    Joined: Jul 23, 2011
    Posts: 496

    morac41
    Member

    Construction insurance is avaible here in Australia ..its cheap..worth while on expensive builds
     
  10. mcmopar
    Joined: Nov 12, 2012
    Posts: 1,414

    mcmopar
    ALLIANCE MEMBER
    from Strum, wi

    Thanks for the input. I have learned a lot talking to my agent, and you guys. I believe I will have it taken care of by the end of the day.
    Tony
     
    loudbang likes this.
  11. Hagerty will insure a project and your tools as well. They are going to want to see proof of tool ownership and things like that, I shoot my agent a bunch of pictures and email them to her.
     
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  12. Mike51Merc
    Joined: Dec 5, 2008
    Posts: 3,770

    Mike51Merc
    Member

    It seems to me that personal property is personal property, whether it's a big screen TV in the house or parts in the garage. You just have to have enough coverage and proof that you owned the stuff.
     
    irishsteve likes this.
  13. I have deeper pockets than some, I try to keep the hobby in perspective though. My car and tools are insured, if anything I sleep better at night and the cost is fair and reasonable. Also don't keep all of my tools in the same place.
     
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  14. I was helping a co worker restore a 1946 Harley. the bike was almost done. we were out of town at a bike show when a storm blew down a tree. the tree landed on the garage destroying it. the bike suffered some damage in the process. when the insurance agent was called it wasn't good. even though it was not running it was titled when purchased therefore required its own policy. if the bike did not have a current title in the owners name the damage would have been covered and considered contents of the garage. tony I would check with your agent on your policy to get the correct info. a policy can be tailored to your needs it just has to be in writing. to help you sleep at night maybe its time to get that security system I told you about. the cost of the system pays for itself with the discount you will get on the policy.
     
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  15. anthony myrick
    Joined: Sep 4, 2009
    Posts: 4,155

    anthony myrick
    Member
    from al

    Up the content coverage
    Take pics
     
  16. take lots of pics. save every receipt. I have a folder that's full of them. they will want to see proof you bought the stuff and its cost.
     
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  17. Jalopy Joker
    Joined: Sep 3, 2006
    Posts: 21,669

    Jalopy Joker
    Member

    just put parts in house and list as jewelry - Ha!
     
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  18. You would think but that is not the way it works in the insurance game. For instance my diesel Grasshopper mower is covered by the homeowner's part for fire, theft, etc., as it cannot be titled by the state. On the other hand, anything that is titled or has the qualifications for title is not covered by home owners insurance.

    I have Acuity insurance on all my stuff--house, drivers, hobby cars, guns, jewelry, etc. They required appraisals on the finished stuff and an appraisal of sorts on the partially worked on stuff. No liability on the non-running stuff, of course, so the coverage was cheap. I increased the coverage as I spent the money on stuff. According to my insurance guy all of that coverage was still good on a trailer to the paint shop or upholstery shop and was covered while in their possession.
     
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  19. gene-koning
    Joined: Oct 28, 2016
    Posts: 1,122

    gene-koning
    Member

    I was one of those lucky guys that had my garage blown down in a storm with 2 projects inside of it. Not only did it blow down, it also blew apart scattering my stuff for well over 1/2 mile, in town!
    That was when I learned cars, car parts, and tools that are have special use only for cars are not covered by homeowners insurance. Zero value, not covered.
    I had replacement coverage on everything in the garage (it was 3 stalls), but the garage was not attached to the house. That was when I learned lesson number 2: A garage, not attached to a house becomes an out building. All out buildings are worth the total of 10% of the insure value of the house. The 3 stall insulated, with electric and cement floors and the 10' x 10' storage shed outside were worth 10% of the insured value of that $60,000, or about $6,000. I couldn't even buy the replacement bare garage kit for that money, and to make things worse, that $6000 had to also cover cleanup and trash removal.
    The 3rd lesson I learned was that the "replacement" value of the covered content of the garage is based on the current price, less the depreciation, based on how old that item was. Most items were depreciated over a 10 year life span. If the item was 10 years old, it wasn't worth anything. If it still managed to retain some value, the only way you got that money was to buy the new replacement item. Yea.
    Lesson number 4 I learned was that because I did not have a list of the things I had stored in my garage, I would need to make a list of everything I had in the garage, then I had to determine its replacement cost, and estimate how long I had owned the item. My list was extensive, you can put a lot of stuff into a 36' x 24' garage. After reviewing my list, and viewing the pictures of the debris field, taken from my house roof by their adjuster, they determined they would settle for $$$$ for the things I was intending on replacing from inside my garage.
    Its been 20 years since my garage experience. Like Squirrel, my opinion is its just hobby stuff. It started as junk and at some point, it may or may not be something fun to drive. Both the projects that were in my garage were pulled out of the mess with new custom features. Both were finished and saw the road, and both were sold in their time.
    If you think your stuff is special, or you have too much money in it, call Hagerty or another specialty insurance company and get your stuff covered, or come to the point of believing its only stuff you get to keep for a short time, and enjoy it while it in your possession. Gene
     
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  20. J'st Wandering
    Joined: Jan 28, 2004
    Posts: 1,583

    J'st Wandering
    Member

    I am not singling out the original poster of this thread but so many of these insurance related discussions are related to covering the value of items that could be lost or stolen. I have yet to see an insurance discussion on how much liability insurance someone needs to carry so that they don't loose everything including their toys in a law suit.

    How many of you have the minimum liability coverage but are concerned about covering your car parts if a tree falls on your garage?
     
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  21. lumpy 63
    Joined: Aug 2, 2010
    Posts: 678

    lumpy 63
    ALLIANCE MEMBER

    Every dealing Iv'e ever had with an insurance company left me with a chapped ass....
     
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  22. southcross2631
    Joined: Jan 20, 2013
    Posts: 2,571

    southcross2631
    Member

    My sons dirt bike was stolen out of my shop and was not covered by my home owners . My agent said it's too bad it wasn't a 4 wheeler because you can tell them it is used for the maintenance of the property. Hagerty has covered many of my project cars while they were being built.
     
  23. mcmopar
    Joined: Nov 12, 2012
    Posts: 1,414

    mcmopar
    ALLIANCE MEMBER
    from Strum, wi

    It's amazing on what is not covered by insurance, when we think a lot of it is.

    Brian, the security thread that @Hrp started actually got me thinking about security. Then I started adding up stuff I have in my shop. Then called my agent and he said its not covered. I have a 30 x 50 shop finished and heated, that was only covered for $19000. I told my agent materials to rebuild it would cost more than that. Now I feel I am covered I believe, just have to talk to agent one more time. I am working on getting my classics covered by someone else also.
    Tony
     
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  24. There are always the "what ifs" in these types of discussions. My agent suggested that we go through the policy line by line to answer my questions. It took several hours but all my question were answered. He reiterated that "replacement" value and "agreed" value are very different things. If your agent says they are the same thing, you need to find another agent TODAY.

    On the liability issue--umbrella policies are cheap. You may comfortable with the state minimums but rest assured you are risking everything with those numbers. I'm not the least bit comfortable putting everything I own out there for some shithead to take in the event I rear end him in an accident.
     
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  25. alanp561
    Joined: Oct 1, 2017
    Posts: 579

    alanp561
    ALLIANCE MEMBER

    Don't know how it works in your state but in Tennessee, if a tree in your neighbor's yard falls into your yard, it's considered " an act of God " and any damages on your property are yours. Only way around that is if you have sent the neighbor a certified letter concerning the condition of the tree prior to it falling. I know, it sounds ridiculous but a neighbor's tree took out 60 feet of my fence and landed well into my yard . I was responsible for the fence replacement and getting the tree out of my yard. And, NO, I couldn't throw the wood back over the fence.

    Sent from my SAMSUNG-SM-G891A using The H.A.M.B. mobile app
     
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  26. gene-koning
    Joined: Oct 28, 2016
    Posts: 1,122

    gene-koning
    Member

    I told the story about my garage blowing apart, the complete roof tore loose and helicoptered 150' into my neighbors tree, about 15' off the ground. It was up to his homeowners insurance to cover any damages and have my roof removed. All my neighbors got to clean up the trash from my garage. Makes a guy feel like a great neighbor. Gene
     
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  27. porknbeaner
    Joined: Sep 12, 2003
    Posts: 40,906

    porknbeaner
    Member

    Guys worrying about covering pars. Hell I had a house fire in the early part of the century and couldn't get the insurance company to cover the house. Not even with an attorney. Evidently there is some clause in Missouri that if there is no fire marshal's report that is no fire. in KCMO you only get a Fire Marshal's report if it is a suspicious fire. Suspicious fire also means no coverage. Go figure.
     
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  28. mcmopar
    Joined: Nov 12, 2012
    Posts: 1,414

    mcmopar
    ALLIANCE MEMBER
    from Strum, wi

    beaner, that sounds like a catch 22. It looks like Hagerty is winning the bid. I have heard a lot of good about them, and only a little bad. Now for pics and all the other stuff.
    Tony
     
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  29. Chappy444
    Joined: Jan 27, 2012
    Posts: 711

    Chappy444
    ALLIANCE MEMBER
    1. Maryland HAMBers

    I believe Hagerty has a spare parts and tool rider for their classic car insurance policy.
    On my last OT rebuild I had it as I had about another cars worth of expensive and hard to find parts
    Chappy
     
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  30. WB69
    Joined: Dec 7, 2008
    Posts: 611

    WB69
    Member

    I've said on here before, I have thousands of pictures and ALL receipts.
     
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