Tool insurance

[DSW]

The theft of a members tools on another site ( Socal Tool theft) has reminded me of this. It seems way too many guys find out too late that their tools and gear are NOT covered by their insurance for one reason or another. Sadly that's what they told him today about the theft.... He's not not covered because he didn't list them as "additionally insured items" on the policy from what he last posted. If you use your tools to earn money, then there's an even greater chance your insurance won't cover them as most home owners policies exclude tools used for business. It seems the more expensive and "specialized" a tool is, the less likely they are to be covered.

 

 

I know when I talked to my regular agent, that my personal tools are all on the "questionable" list as to if they are covered or not. Since I'm a general contractor and I work for myself, even tools that I might use for my "hobby" stuff might well be refused if I put in a claim, if they chose to do so. Also any "expensive" tools, usually with a value over $1000 would need to be listed individually, or they aren't covered under any circumstances. The definition of what constitutes a tool for "work" and a tool for my "hobby" is very poorly defined by the insurance company. Since I'm a big fan of buying top quality tools, even tools I have never used for "work" like my lathe or my little table top mill aren't exactly "homeowner" quality. Light industrial usually is a better description of many of my tools and gear.

 

For my business, I have a $15K Inland Marine rider to cover tools and materials in addition to my regular general liability policy. This rider covers my tools ( again anything over $1K is supposed to be listed individually) ANYWHERE. Home, on my truck, job site etc from theft, fire or loss. I probably should have 3 or 4 times as much coverage, but right now I just can't afford it. $15K is enough to at least get me back on my feet and working, should say my truck get stolen with all my tools in it. Other wise my business would close when my tools are stolen. When you stop and start adding up just what all my hand tools would cost to replace, let alone my basic power tools, it's staggering what I have invested in tools.

 

 A few thoughts. Make a list of your tools. As well as a description of what the tool is, and hopefully what you paid for it, include any identifying marks, serial numbers and picts of the tool, serial number and identifying markings. While they may not help recover the tools, at least it's a documented record of what you owned taht you can use to back up your case with the insurance company, should God forbid, you ever do have to fight for the value of your tools. I'll admit I'm not as up to date on this as I should be. When my truck finally comes back from the mechanic, it will be time to do another through cleaning, pulling everything from the boxes, documenting them again to make sure I have them all listed, before I put them back in the truck. Home shop tools are on the list when time permits this winter.

 

Take a minute next time you are talking to your insurance guy to fully understand what IS and IS NOT covered by your insurance. Think long and hard if you can afford to loose everything if they deny the claim because it wasn't covered. It may be well worth adding a rider to your policy specifically to cover your tools, even if it's only for  fraction of their value.

 

 

 

 

Think hard about this. I can almost guarantee there is some scumbag out there who wants to steal your stuff. It could be some crook who wants to turn your hard earned tools into cash at the  pawn shop or on CL. Worse it's some tweeker or crack head who'll sell your hammers, tongs and anvil for scrap. A lot of these guys have learned the scrap guys really don't ask too many questions and pay cash. Stuff that goes to scrap is usually unrecoverable even if they do manage to catch the crook. Around here due to copper and alum theft being high, many nonferous scrap places are now required to provide documentation about who brings stuff in and what they brought. Most photograph your ID along with a digital pict of what you sold. The steel guys don't, and it seems the junkies know this. Even in a "good" neighborhood something can happen. If it's not theft, there is always the chance of fire, or storm damage like a tornado that can wipe you out.

[John McPherson]

Having been thru this ordeal myself, I can attest that there is NO upside. Property theft is such an epidemic that the Police do not even respond in person unless you have a break-in of your actual residence (not your truck, garage, shed or barn), or unless guns and motor vehicles are stolen. Why is this happening, you ask? They have re-defined the crime. Property theft is now a misdemeanor, and not a felony. 

 

So, forget that CSI stuff, even if they left fingerprints on everything. Nobody is coming. They even suggested over the phone that *I* should check the pawn shops and flea markets for my tools. :angry: I had to read the paper for the crime stats a few weeks later to find out that a dozen folks in my neighborhood had filed reports that same night. No telling how many did not even bother.

 

For everything else you get an on-line form to fill out,so that you can submit a documented claim to your insurance company. Which may or may not pay you anything on your claim, but likely WILL raise your rates or drop you due to "higher risk". :(

 

 

[notownkid]

Anything of value in tools take a photo of when you determine and list the values attach the photo, helps to date the photo.  Will not help much with insurance Co.(they are paid to turn down any and all claims they can) but will go a long way when you find the scum that stole it. 

 

Never show off your real nice equip. esp. to other workers and darn few friends.  Friends talk, they have other friends and relatives not quite as honest as they are.  Police are no help because they know most thieves are in it for drug money and they sell it for pennies on the dollar.  A number of yrs. ago we discovered a cop was stealing car parts from us.  Only found out when we left a dog in there at night in fenced locked area.  He didn't make another trip. 

 

Video security for any area your tools and equip. is in.  If you catch them make sure they "Fall Down a few times". 

[Eddie Mullins]

I haven't had a "shop" break in (yet) but have had two home break ins over the years (2 different houses in different states). Its a bad deal all the way around, luckily our insurance has been good to deal with. My "shop" , read as old barn, has now become a concern as I have added multiple tools over the last several months, it is probably a good time to take some pics and talk to my agent. After the last break in we fenced our property and got a German Shephard, not a garuntee, but makes me feel better and gives the wife some peace of mind.

[Nobody Special]

In addition to pics, was advised by an insurance guy giving a briefing to military years ago to do a walkthrough with a video camera and talk your way through all household items, tools, or equipment, showing i.d. information and describing the item, identifiers, and and value.