tool insurance, what to watch out for?

[russ_1380]

Hello everyone.

I am looking in to tool insurance.

At present I am a hobby user but have invested considerable money in tools and machinery both woodworking and mechanics / engineering tools.

As the topic suggests, are there any pitfalls to be aware of regarding tool insurance? Basically I want the insurance for theft and fire. I will need to check my house insurance with regard to what that will cover but from memory it was a minor sum compared to what has been invested.

Ay tips from experience appreciated

Thanks

Russ

 

[9fingers]

My experience with insurance is that insurers only feel confident in giving competitive pricing when there is a volume market and past experience to draw upon. When this is not available they charge lots.

Domestic insurance rarely covers much in the way of tools
Insurance for business traders is well established but as the risk of loss is high (vans being broken into, theft from job sites etc) the premiums are also high.
Relatively few people have high value tools/machinery at home and so the insurance market is just not set up to cover it economically.

I think you will find most people don't insure specifically and instead take precautions against fire and have good security.

Bob

 

[No skills]

Thats a tad depressing reading that, I'd pretty much convinced myself to convert the garage into a little workshop and was going to insure it all properly, its pretty thievey round here (had it broken into before - tools nicked, thieves are local and like to repeat visit) and I dont fancy loosing my stuff again and not getting it replaced

I'll have to get some quotes before I do anything else, the little bit of woodworking stuff I have has been hidden away unused for the last 18 months because my garage isnt up to bank vault standards.

pipper.

 

[sparkymarky]

i`m insured with nfu for my household contents, they will insure all of my sheds / workshop contents at no extra cost as long as it doesn't exceed my premium (about 25k) and i am not using my `hobby` as a business. i have checked this with them.

i have logged all of my tools by taking pictures of them and saving them on a file on my pc hopefully this should prove to be a good evidence point if any get stolen.

nfu were also my cheapest quote for contents insurance from about 10 companies i got quotes from.

hope this helps.

 

[No skills]

Will have to check my household cover see whats going on, sorry for the thread hijack.

Back up those pictures somewhere, in case your pc gets nicked

 

[wallace]

My workshop got broken into afew years back they took alot of stuff like compressor drills etc. My insurance (prudential) were really good and replaced everything to equal or better quality. There only quibble was that I was not running a bussiness from home, and I was purely a hobbiest. I will never forget that feeling when you wake up and see your workshop doors open It's now like fort nox. I should really make a list of everything I have just incase.

 

[jumps]

A few observations

basically you have 2 choices -
1. rely on insurance
2. rely on security

insurers are increasingly expecting you to do no 2 if relying on them! Read Direct Lines requirements for an example of this. It's not sharp practice at all, it's purely a take on the pooling of insurance - reduce the risk and get reduced premiums.

strictly from a personal perspective I believe the 'economic' solution is to stay one step ahead. A version of the joke about escaping lions - you don't need to outrun the lion, you need to outrun the other food. Make a good job of your security (including curtains/shades etc to keep expensive equipment out of sight. Double your patrols on Thursday night (stuff is nicked to market Fri ahead of Fri night the world over).

Avoid being a high profile target - ie worth extra effort
Avoid being an easy target

It only costs £10 to put a loud audio alarm on your 'shop - they will run.
You are not allowed to electrocute them, leave salt water crocs loose in the 'shop (without a warning notice) or shoot them on the way out (unfortunately).

The really important part of good insurance for the professional is that you get it sorted and can do your job with the minimum of delay.

 

[No skills]

Not sure what you mean by 'Avoid being a high profile target'?

 

[The Wood Butcher]

Don't be obvious about what you are doing is what that means. I don't like to have the doors open in case someone driving by sees what's in my workshop.

 

[jumps]

Not sure what you mean by 'Avoid being a high profile target'?

as the wood butcher has commented - basically it starts with not parading expensive items in front of the world, and goes as far as putting things away in cupboards so that any quick peep through your windows won't deliver temptation!

the classic example is putting things in the boot of the car rather than leaving them on the back seat...it makes a huge difference to the risk.

 

[No skills]

Ah I see (sorry), nearly impossible for myself to do tho - my back garden backs onto a 'traveller' site and they can hear any tools I use. A pre-marked target so to speak :lol:

Ironicly the last thief wasnt actually one of the travellers, but I imagine its only a matter of time before some body from a 'visiting' family takes too much of an interest. Much of the reason I havent had my stuff at home for so long, keep toying with selling it before it goes walkabout permantly.

 

[RogerS]

The other thing to watch out for is the replacement policy. Is it 'New For Old' (receipts and photos very handy as has already been said) or 'Market Value'. If the latter then who sets the market value? Answer. The insurance company and so best avoid these.

 

[Dibs-h]

Ah I see (sorry), nearly impossible for myself to do tho - my back garden backs onto a 'traveller' site and they can hear any tools I use. A pre-marked target so to speak :lol:

Ironicly the last thief wasnt actually one of the travellers, but I imagine its only a matter of time before some body from a 'visiting' family takes too much of an interest. Much of the reason I havent had my stuff at home for so long, keep toying with selling it before it goes walkabout permantly.

If I backed onto a traveller site - I'd have a primary fence on the boundary and then a secondary wire fence inside that - filling the space with razor wire and warning signs up (if required). Might be overkill - but better safe than sorry.

Or sell and move somewhere else - obviously easier said than done.

Dibs

 

[No skills]

Ah I see (sorry), nearly impossible for myself to do tho - my back garden backs onto a 'traveller' site and they can hear any tools I use. A pre-marked target so to speak :lol:

Ironicly the last thief wasnt actually one of the travellers, but I imagine its only a matter of time before some body from a 'visiting' family takes too much of an interest. Much of the reason I havent had my stuff at home for so long, keep toying with selling it before it goes walkabout permantly.

If I backed onto a traveller site - I'd have a primary fence on the boundary and then a secondary wire fence inside that - filling the space with razor wire and warning signs up (if required). Might be overkill - but better safe than sorry.

Or sell and move somewhere else - obviously easier said than done.

Dibs

I can only do the secondary fence part on the back fence being in a terraced house, all null and void as they can come over the neighbours back fence then hop over in to mine - thanks for the suggestion tho.

Sell and move? love to! we brought in the peak of prices round here in 2007 - we are currently down 15k minimum from what we paid, wont be moving anywhere for a long while

Prolly just sell the bits I've got.