Insuring My Shop---Advice?

[Anonymous-0]

For the last year I have been getting my shop finished off. It is a 22x34 barn with cement floor, 8' ceiling and approx. 10.5' clearance in the haymow. It is now WEII wired, insulated, lit, and finished off. I also have a 17x30' addition on the side. Addition is not finished off and has gravel floor.

How much insurance should I put on this building? I can't imagine the loss if it were to burn down.

I also need to insure the contents: welders, saws, vices, grinders, jacks, compressors, etc. I can figure out the value of the tools, but what would a replacement building cost "turn-key"?


Thank you,
Glenn F.

 

[Anonymous-0]

That should read WELL wired....Overkill on the lighting and receptacles, etc.

Glenn F.

 

[Jim Broughton]

Glen; Take the square foot construction cost in your area times the area footage of your barn to arrive at a replacement figure, then add the replacement cost of your tools and equipment and you'll have your answer. If you've got a good insurance man, he or she should be able to assist you in those calculations as well as other disasters besides fire,ie; windstorm. tornado , flood ,etc.
Good luck and enjoy your new barn !!
Jim B. in Oregon

 

[Midwest redneck]

Add up the cost to build and then price out all new tools and add that in. Then go to insurance comp. and say I want it insured for "x" amount.
My garage is apprased for 1/10 of the house or about $25K, The whole garage with concrete was $25k to build. and if it burned to the ground it would not burn up the concrete, so I would actually come out ahead by a few thousand. I dont know about contents in the garage I should find out.

 

[Greg_Ky]

I have all my stuff insured for "replacement cost" so no matter how much the price of things go up over the up coming years I am covered and it only cost's a few dollars more a year. ( no haggling with the insurance company about what something is worth) / RE;(insurance company Say's ***** is only worth X amount because it is XX many years old but to replace that same ***** may cost three times what they offer)

 

[Anonymous-0]

Make a list of the contents. I know this is a real pain, but if something does happen, you'll know exactly what's lost. A really good idea is to put it in a spreadsheet (Excel, etc) one column with the description, and one column with the approximate replacement cost. That would give you a rough idea of how much coverage you'll need. (Just don't show the total cost to the better half ;-) )

You could even go so far as to have model numbers and serial numbers listed on this sheet. Good info to have in the event of theft.

If / when a loss occurs you shouldn't forget about anything, and you'll have a "shopping list" to replace lost items.

Don't forget about parts / raw materials inventory either. This may require a separate sheet if inventory fluxuates frequently.

Digital pictures of the shop and equipment are also a good idea.

 

[JRM]

That's great advice. I lost our shop a little over a year ago. You will not remember what all you have in it. I was glad I had an inventory that was less than 6 months old. I was able to salvage almost all of my tools and equipment, the building was a total loss.

Update the inventory yearly, more frequently if you have major purchases of tools. Also, best to sit down with your insurance once a year and review coverages.

 

[evilboweviel]

insurance company will ONLY give you what they think the tool is worth. YOU have to buy a exact replacement tool out of your pocket send them the bill and then they should reimburse you. Works better with a real good agent on your side
BTDT for 14k+
ron

 

[Hobo,NC]

That happened to a buddy of mine. They would not pay for new concrete, So why figger the concrete in. The building was cinder block and would not pay for new block either. It burned up everything in the building, roof was gone, insured for 50K he got 22K.

I had a building 30X40 cost me 7K to build, the hole deal unlock door and go to work. The insurance tried to con me into 25K policy. No thanks 12K will B enuff. After all you are going to say, concrete is good, we no pay for new concrete.

 

[Mike M]

I had a pole barn built maybe 2-3 yrs ago ? I'm thinking 32x48, 10 foot insides ,insulated ,liner panel heat and lights did the insides myself and still had $22 or 23,000 in it.

 

[Anonymous-0]

Hi Glen,

I can help with this. First off I am a documentation specialist. My company photographs and documents contents such as tools, household items, etc for insurance purposes. I am not sure where you live, but my service would beneficial if you need it. Where ever you live, I could refer a company in your area.

Not all insurance agents are aware of how to insure tools. There is a company called Inland marine insurance that specializes in tools. If your in Canada, check out houseoftools.com.