Shop insurance/instrument insurance, etc

[buddyellis]

The situation John (Yonkle, sorry about the typo in the title) is going through got me to thinking. #I have insurance on most of my instruments, but I have no real documentation on them if something catastrophic like a house fire: #All my documentation is on my computer.

This leads to a few thoughts/questions.

1) I should probably document both instruments I own, but also those I'm building more thoroughly than I currently am, and do so in an off-site manner (picasaweb, or other online storage, etc)

2) Does homeowners insurance typically cover a shop like this that we use for semi-business purposes? #I should probably declare those sorts of things on my policy (at least the big items) #How do you guys who do this as a living (or are like me, a semi-hobby) handle insurance on your shop? #Do you insure instruments in build progress? #Do you have a special policy for this? #Are there companies that specialize in these sorts of things like there are for musical instruments?

[thistle3585]

Well, having gone through a flood, and still negotiating with the flood insurance company, I can say nothing in my shop was covered including instruments. The primary reason is because the base flood policy does not cover contents only structural stuff and mechanicals. And of the structural stuff it did cover, it did not cover the finishing of anything. So, they would pay to hang drywall but not to bed and tape it, nor paint it. My homeowners policy didn't cover anything because it was a flood, but I finally was able to negotiate $5000 out of them for water damage based on a floor drain that backed up. I am still negotiating with the flood insurance company, which is separate than my homeowners policy, and hope to settle in the next week or so. I would estimate my total damage to be around $30,000 and I may get half. I was fortunate to have been able to get a lot of stuff out before the water really took over, but had I been at the festival that I was supposed to be at then I would have lost twice that amount.

My suggestion is that you inventory all of your possessions, yes its a lot of work, then find an insurance agent you trust and discuss what type of policy you need and I would review it with them each year before renewing. I've discovered the hard way that both me and my agent didn't put enough effort into it, but I will from now on. Incidentally, my brother is a certified public adjuster and he guided me through the claims process which has really helped me in negotiating my claim as my agent wasn't too helpful and I was really left to fend for myself. You might find a certified public adjuster to review your policy and make suggestions.

[Mario Proulx]

Depends on where you live, I believe, but as soon as you have accepted one payment for one service or product, the insurance companies will likely consider your workshop commercial.

As thistle said, sit down with an agent(better still, go visit a few) and discuss it, openly. If you try to hide it now, you may save a bit, but when you need -them-, they will dig it out and dump you on your butt.

I've been there(major fire), had the right policy, and re-built, but they(insurance) did try hard to find a way out. C.Y.A.!

[Frank Ford]

IF #you'd like to talk to a really knowledgeable agent, Ellis Hershman is your guy. #He's Heritage Insurance, and he covers lots of well known professional musicians, builders, repairers and shops like Gryphon. He offers, among other things, "malpractice" coverage that provides compensation if you mess up a customer's instrument.

For my own personal instruments, his stand-alone policy is around half of what my homeowner's "rider" was costing me.

http://www.musicins.com

[buddyellis]

Frank,
Exactly what I was looking for. I know about musical instrument insurance (much better/reliable than homeowners when dealing with instruments) and I figured there was something similar for builders/etc, and, well, there it is.

[Rick Crenshaw]

I'm not a builder (well, I built one very great sounding Stew-Mac F5! I mean GREAT) but I have instruments that I insure through Heritage. Never had a claim, but I know someone who has... no hassle. I talk to Matt Hershmann or Colleen Bianchi. Great people. I sleep well at night.

[dunwell]

Contact Joan or Ellis at Heritage Insurance Co.

joang@musicins.com
Phone: 1-800-289-8837 x112

You will also need to check with your homeowner policy folks, but if you sell anything, or if you have claimed floor space as a business on your taxes, then I suspect that the shop is not covered.

Suggestion, not for just the shop, but for the whole house. Pick a day each year, like your birthday, and stand in the center of every room in your house and take a photo of every wall. Stick the results in your safety box. You would be surprised how many things you will see later in the photo that you didn't remember having, even not listed on your inventory. Several close up photos of your CD and DVD racks and book cases helps too, there can be an amazing amount of money in those small spaces, particularly when you go to replace them and find how many are out of print.

Alan D.

[Celtic Saguaro]

I doubt seriously that a commercial woodworking shop (see the definitions above) of any sort would be covered by homeowner's insurance.

[jaydee]

For the instruments in your collection you should get an appraisal every two years or so. Keep the appraisals in a safe deposit box so you have a concrete replacement estimate if the unthinkable happens.

JD

[LeoR]

I contacted Heritage and they didn't require an appraisal. Just the Make, Model No, Serial No & my estimate of the value. This surprised me - anyone ever file a claim with them? Good experience?

[Amandalyn]

i Have Heritage Ins. Never had to file a claim, but happy with their service.

[dunwell]

This surprised me - anyone ever file a claim with them? Good experience?

Only very minor one for some finish damage and it went w/o a hitch. They were surprised that I was claiming so little. Contact Mark and Kath Blanchard (http://blanchardguitars.com/) if you want a real life tale about how good Heritage is with claims.

Alan D.