Projects I may be preaching to the choir here, but .....

Folks:

Every once in a while an article comes that might help those involved with building or restoration of something cool. Such a treatise follows. PLEASE read this:

http://roadscholars.com/is-your-project-car-insured/

Jon Lundberg

 

Or you could spend the cash and have the shop/garage and all of its contents insured. my homeowners covers anything in my garage at any given time and it is easy to prove what was in there if there was a fire, in the case of theft I am also covered by simply sending a time stamped photo via email. it costs me an extra 20 dollars a year.

maybe different where you are but in good ol Missouri you cannot register a car that will not *** safety inspection. So a project cannot be registered.

 

A friend of a friend recently went through that. He was told by is ins. agent that everything in the garage was covered. His copy of the policy said everything was covered.

His old uninsured motorcycle decided to catch fire. Burned the whole garage down. Vehicles with insurance were covered, no prob. Agent said to take inventory of everything else in the garage. He hit over $100k in tools and equipment and the motorcycle. Spent weeks sifting thru thru rubble to get everything listed. In the end got $12k, policy limits.

Fine print on the back of the policy was where the policy limits were reveled. Even the agent did not know this. We are the exception to most insurance policies. Most people do not have a $20k tool box. Or $800 worth of spray guns on the wall. Let alone a few sets of NOS fenders upstairs. I do not have everything I own on one building. I know that not everybody can do that.

 

LOL I am over 60 and have been hearing read the fine print all my life.

Insurance companies do not make money paying claims, they will do whatever they can to get out of paying. In nearly every state in the union these days a verbal contract is binding. Someone owes your friend some cash and it is up to him to get it, either the agent who sold him the policy or the insurer. Neither is going to step up if he doesn't step up first.

Anyway legal advice from a jailhouse lawyer is worth about as much as a felon with a law degree.

Getting back to my original statement read the fine print I do.

 

Been there.. In Michigan, with State Farm insurance. Lost a packed 20x40 building. 32" of snow fall in two days. Roof collapsed. Next day 36 x 48 building roof collapsed.. Was in court for two years. Got $15,000 plus a $500.00 "cleanup" allowance.. Policy limits and Michigan insurance laws.. "cleanup" cost several thousands. Loss of contents was never paid.

In Michigan, at that time. The claims had to be submitted as one. Special purpose (lathes, mills, welders) tools that are not used in the "average" home are not covered unless covered by a "rider". Automobiles in buildings must be licensed and insured to be covered.

 

Insurance Companies are Masters of Deception , they are all fantastic until you file a claim

 

Yes, The old add,, "You're in good hands with Allstate". So long as their hands are in your pocket!

 

always rear the fine print...or hire a lawyer

 

Well we avoid any insurance that had farm in the name. One of them got caught paying off insurance lawyers a few years back and another defaulted on some storm damage down south in the same time frame.

An acquaintance about 5 years or so back had a claim that didn't get settled due to the fine print and his attorney went back to the agent who said that the claim was covered prior to and after the fact. IE when the policy was sold and when the claim came up and the insured friend asked him about his coverage. The agent was found liable as when he sold the policy what he said amounted to a verbal contract.

Insurance varies from one state to the next, I think that it should be regulated on a national basis but that is just not the case. I have read the fine print on my current on my policy as well as the rider that covers contents of my garage, also had my attorney take a look at it and I am covered. So I am not too worried about it, I guess one should look into the liability laws in their own state.

 

I'm a former level III broker, knowing the fine print and how it affects your client is the agents JOB. If the agent didn't tell him his sub-limits may not be sufficient, the agent is WIDE open for an E&O claim. If the agent told him, and do***ented telling him, and he decided adding the coverage was too much extra $$, which is usually the case,well, then hes on his own.
I cant speak as to what goes on in the states, but motor vehicles beyond golf carts and garden tractors are NEVER covered under a homeowners policy, tools and buildings are, subject to a sub-limit, which can be raised to whatever level required, FOR A PRICE. I did this **** for 20 years guys, and THANK GOD I aint doing it anymore...
This is the kind of **** that keeps you up nights, you tell a guy he needs more coverage for XYZ, and he starts backpeddling and minimizing what he has, and you KNOW damn well hes ********ting you, and you WARN HIM what is gonna happen if theres a big loss and hes underinsured, but he just figures your trying to "pad the bill". I used to have this conversation damn near every day. Then the big claim happens, and you are "an incompetent shyster *******".
Benno, in Canada the regs are uniform across the country, except for those nut jobs in Quebec.

 

As far as that goes, all that stuff is printed on your copy of the policy. You SHOULD be reading it yourself, and asking your broker about anything you are unsure of. Call him/her up, and ask them to review your policy wording. Go into their office and have a sitdown, where they can read your wording to you with you there, and review anything you aren't sure about. A competent broker is HAPPY to answer any questions of this sort with you, as it helps put a firewall between him and any potential E&O's. besides, its what we do.

 

Better call Dewey, Cheatham, and Howe.

 

My beloved Triumph. At least it took nothing with it, and was insured. JC Taylor paid the stated value 10K without fuss and then sold it back to me for 10 bucks. No post incident rate increase.

 

Man, that's heartbreaking to look at...

 

Well I would say its just a damned old Trumpet but contrary to popular belief I happen to have a real soft spot for Limeys. Good that the insurance covered it.

 

I had the wagon insure for a stated value the entire time I was building it,I could raised the value every six months if I need to.

I did this when a friend experienced a fire that destroyed his garage,his home owners covered his shop and tools but his project car was not covered,his auto insurance covered the finished car.

This insurance is relatively inexpensive,seems it was around 70 bucks every six months. HRP

 

In Missouri you don't have to license a car to insure it but it has to be ***led in your name. The way mine is set up it is easier just a simple rider on my homeowners. It will not cover an uninsured car in the driveway but hopefully my driveway won't catch fire any time soon. Well maybe on the 28th when the world comes to an end but that will probably be a moot point as I doubt that I go to hot rod heaven anyway.

 

Again?,the sky is falling,the sky is falling. HRP

 

Yea I guess it is all over the web, some pastor in Texas has predicted that because we are having a blood moon on the 28th and it is one of several recently that the world will come to an end.

Wolf, Wolf, Wolf.

 

Duck?

 

No that's duck, duck, goose.

 

Oh yea! That's it...

 

And people wonder why I never let you get behind me. Makes me giggle just thinking about it.

 

I'll add some perspective from the point of view of a (former) insurance adjuster. Spent five years doing boat and yacht claims, and am second generation behind someone who spent thirty years doing multi million dollar liability claims. Some random thoughts, in no particular order . . . .

- "They make money not paying claims" - Actually, they make most of the money in the markets with the money, while they have it. The average insurance company loss ratio is 106-108% - That is, the cost of claims, and the loss adjustment expense, is 106-108% of claims dollars taken in. If we could cut out the bogus claims it would help, but legit claims we have no say over.

- "the adjuster doesn't want to pay . ." - Actually, and I don't mean this to sound harsh, but your adjuster doesn't give a damn if your claim is paid or not. Their job is to pay based on the contract of insurance (the policy), and the law. You have coverage, you get paid. Coverage doesn't apply, you don't get paid. Under the law (both my adjusters license, and the Federal Fair Claims Practices Act) my job is to find any and all available coverage available to the insured under the contract. Trust me, screwing you is not worth losing my license.

- The number one, most common, without at doubt cause of conflict between insureds and adjusters is the simple fact that people do not take the time to read and understand the policy they purchased . . . until they have a loss. At that point it is too late. Do your homework, ask questions, ask more when you don't understand the answers, and don't stop until you are certain you have purchased the right coverage for your needs. I can only pay on the contract, not what you thought you had, or you thought the agent meant. All the policy language used to deny a claim is clearly written in the policy you were provided when you purchased the coverage.

- Don't shop price - shop coverage, financial stability of the company, and quality of claims operations. (in that order) When it comes to insurance, cheap is not generally a good value. Especially when we are talking about specialty items such as Hot Rods, boats, shop equipment, etc.. In these cases it is important to have a claims operation that understands the products if it all possible. I am always amazed that people will scrimp on coverage or company to save $250 a year protecting $100k of their hard earned ***ets.

- How you treat your adjuster will go a long way towards your experience with the process. Face it, we're all human - everyone is en***led to the same thing legally - but if I have 150 files on my desk, and you are an abusive jack*** because you hate insurance companies, you might not be at the top of my to-do list. I can often streamline the process, but the more abusive you become, the more hoops you may face to jump through. (streamline vs. letter of the law, so to speak)

- Don't lie to your agent, or the carrier if you are working direct with a company, when buying coverage. The common things are driving records, DUI's, or locations of the insured items. I won't bore you with the legaleze, but the legal issue is Material Mis-Representation. You may find yourself with a catastrophic loss and zero coverage . . . on something that would have been covered had you not lied in an attempt to save a few bucks.

- For every "the insurance company screwed me" story, those of us on the other side have one about an insured who filed a bogus claim and we caught it. And another one about a claim we knew was bogus, but for legal or business reasons we had to pay anyway. Those happen daily. But otherwise honest people seem to have no issue scamming an insurance company, and by extension costing the rest of us in higher premiums.

Ok, sermon over.

 

all of the above in spades. And the biggest expense to Brokers and Insurance companies? Not claims, hell, not even close. Fighting (usually spurious) lawsuits.

- Don't lie to your agent, or the carrier if you are working direct with a company, when buying coverage. The common things are driving records, DUI's, or locations of the insured items. I won't bore you with the legaleze, but the legal issue is Material Mis-Representation. You may find yourself with a catastrophic loss and zero coverage . . . on something that would have been covered had you not lied in an attempt to save a few bucks.

 

Did I make that big enough? Can you all read it? Seriously guys, I no longer have a dog in this fight, left the business 3/4 years ago, glad to see the backside of it, no love lost. Best free advice you will ever get right there.

And I'll tell you another little secret a lot of guys on the other side of the desk from me never figured out. I used to be primarily on the commercial side, and as soon as I figured out a guy was ********ting me about what sort of work he did, or what property he actually had, and trying to minimize it to save a few bucks of premium, I would quote him the VERY HIGHEST company I could find. Wanna guess why? I didn't want his business, I was hoping he would go to the guy down the street, and become his problem, because I don't want that clown on the books. in the business its called "front-line underwriting" and its why guys like me got the big bucks, as opposed to the yahoo you are dealing with at the front counter. It goes back to the "keeping me up nights", rejected claims, "material mis-representation of fact" and spurious lawsuits I mentioned earlier. Seriously, these guys have no ****ing clue...

Theres your little window into the inner machinations of "Dewy, Cheatum and Howe".

 

Yep, that about covers it, from both underwriting and claims perspectives. The things you see on a regular basis would astound most people. Things people think they are going to get away with - like we (agents and adjusters) haven't seen it all before. Just because we can't stop it doesn't mean we weren't well aware of it.

That said . . I had a sign framed on my office wall that said "Remember to remind yourself every thirty days - Every insured is NOT a lying, cheating, lowlife, son of a ***** - Those are just the one's you remember vividly." In reality most people have had something bad happen, and just need you to help them resolve the problem. You go through the process as quickly and painlessly as possible, and you keep moving.

 

Things must be real different in Tennessee. There is nothing painless about an insurance claim here, you have to fight for every red cent.

 

When I was an adjuster I was in Virginia, and because they were specialty claims, I handled losses nationwide. Property losses are pretty cut and dried. Liability losses are more fluid, but often the fights trace back to an unrealistic expectation. Everything has a fair and reasonable value - from a hangnail, to a death.
If I only had a dollar for every time someone said, "If you don't meet my demand, I'm going to get an attorney" . . . . . . . . .