Does anyone insure thier tools?

[apontesworkshop]

Hi I am curious does anyone take additional insurance on their tools for theft?

 

[peter halle]

Absolutely.  I have my tools insured two different ways, but first let me explain about tool insurance.

Usually when you buy tool insurance you specify a dollar amount of coverage desired.  Let's say $20,000.  You then have to specify a deductible.  In the event of a loss you will be responsible for the deductible and then the insurance payout will be based on the depreciated amount of the tools or a database they have.

I have coverage for the majority of my tools under this avenue.

The second way to insure in my case is for listed tools.  You can get better coverage but it costs more.  I have all my Festool products and other high dollar items insured at REPLACEMENT cost under this part of my policy.  I have had to supply serial numbers and other info on each item insured separately but in the case of someone breaking into my van and making off will all my Festools I will only be out $250 and I will get the amount needed to replace at today's prices.

It is not easy to find replacement cost insurance.  Cincinnatti Insurance offers it.

Peter

 

[zapdafish]

As a hobby, I think my tools are covered under my homeowners insurance. At least that's the remaining impression from when I bought my home and was talking insurance, lol.  So whatever my deductable is, is what I would be out.

 

[apontesworkshop]

Thanks for the information guys!

Ken

 

[southrider]

Most homeowners policies cover "personal use" tools as a part of the contents coverage up to the amount of contents coverage on the policy (typically 75% of the amount of coverage on the home). Business use of any item makes it then subject to a special limit for "business personal property" that is usually very small ($200 most policies). Incidentally  - personal property is covered anywhere in the world, but normally limited to 10% of the amount on the policy when away from home.

What Peter is describing is "Commercial Inland Marine" coverage, which can be written on a "blanket" basis, or "scheduled" - some companies limit the use of blanket policies. The idea is to insure large expensive items on a scheduled basis, and write a small blanket for hand tools, etc.

Most companies that write homeowners insurance will write it, especially if you have informed them of business use of your vehicle, and they are insuring it that way (by the way - if you are using your personal truck or van for business purposes and HAVEN'T informed your agent you may lose your auto insurance entirely if you have an accident with that vehicle and they find out after the fact that you are using it professionally. And you don't want to be shopping for commercial auto insurance AFTER you've had an at fault accident).

 

[Mike Goetzke]

As a hobby, I think my tools are covered under my homeowners insurance. At least that's the remaining impression from when I bought my home and was talking insurance, lol.  So whatever my deductable is, is what I would be out.

I read someone here had problems with his insurance company in that they didn't believe such a high $ amount of tools was solely for personal/homeowners use and refused to pay.

 

[Lincoln]

I have dedicated tool insurance - they're covered no matter where they are kept, as long as they are locked up. I specified a $ value, which sets your premium, payable per month/year. Premium is tax deductible. (I'm in Australia)

 

[Chris Cianci]

As a hobbyist my agent just suggested taking pictures of the tools and get a copy to him. Considering how often tools come up for sale on the FOG and they have had little to no use.....if something was stolen we might not remember a Not often used tool and fail to add it to a claim