Insurance stories?

[RayV]

My father used to tell me, "Life insurance is the worst bet you can ever make. You're betting that you'll die; they're betting you'll live".

I was looking for a part and then somehow made it to the snap-on website and saw the current price for the ratcheting screwidriver ($51.70). I have two of these. I got to thinking...

How much $$$,$$$.$$ would it take to replace my tools in the event of theft, fire, etc.?

Would the insurance company pay replacement price or some concocted devalued amount giving me pennies per tool?

How would I prove what I have? A fire would burn up the folder with the receipts and that is only the receipts for the big-ticket items(not one in there for the two $50 dollar screwdrivers).

Yeah there is furniture, appliances, clothing and other stuff in the house but what about the tools? Any experiences with tool losses and insurance companies?

[Duane Bozarth]

Well, the obvious answer is you buy life insurance for the beneficiary, not for you... ...

Depends on the terms of the policy--whether it is replacement value or market value. How much total liability for major tools is included in a standard homeowners policy w/o a specific rider is probably limited to something fairly small...

You keep copies in either fireproof locations or better yet, somewhere offsite that is readily accessible in the event of a disaster. The same is true of proving value/contents after any disaster, not just fire.

See above...

[tom]

Record your purchases in a ledger, detailing what, how much, and when bought. Save all reciepts. Video tape the contents of the entire estate, and put it in a safe place. And be on good terms with your insurance agent! Tom

[Leon]

It all depends on what you buy. ASK questions, don't go tot he agent and tell him to simply sell you insurance. Tell him what you expect out of your policy.

My agent took pictures. Make copies of receipts and keep them in a fire sage or at another location. Standard procedure for protecting valuable information.

[Robatoy]

[snippered]

I spread all the little tools out on the shop floor, took a high-res digital shot of several batches like that. I included the front pages of some area newspapers in order to somewhat 'date-stamp' the pictures. I then burnt a few copies of the CD I created and filed them with my insurance people and my safety deposit box. I have replacement coverage, which isn't cheap, but at least the premium is tax deductible.

It is amazing what a router-bit collection adds up to. My regular toolbox has accumulated several thousand dollars worth of small stuff...stuff you'd forget if you had to fill out a claim from memory.

[Lew Hodgett]

A video camera.

Keep the tape off site, like in a safety deposit box.

Lew

[RayV]

I'm assuming the premiums are dedcutible as a business expense?

I hope it is not comprable but the *RING* alone added almost $300 to our homeowners policy. Don't tell her, but the tools cost a lot more than her ring.

[Steve DeMars]

Being an insurance adjuster I can tell you. . . .

Photo everything. Try to put together a comprehensive list that coincides with the photos. Establish prices today for "REPLACEMENT" This is also for your wife should you die so she can sell it all and not get screwed. You will be paid on the actual cash value initially, until you replace your property unless you live in Florida. Then you get replacement cost up front.

Keep one copy at your home in fire proof box / safe and give one copy in a sealed envelope / box to your trusted agent.

[Dave W]

Just for the fun of it, I made a wild guess of the value of my shop stuff before phothgraphing and listing everything. I was low by half. It is not the saw, lathe, shaper and jointer that contain the value. The worth is in the details. Dave

[john]

Digital Camera and DVD/CD disks. Scan in the receipts and the digitial photos - store in safe deposit box - update quarterly or what ever is appropriate. I keep the image file on the harddrive - keep the latest DVD in the safe deposit box - update and replace as necessary - DVD writeable media is approx 40cents a disk (or less on sale or with rebates/specials - not a lot of expense for peace of mind)

John

[Mike Marlow]

I've never experienced this form of payment on any claim. I've always gotten replacement value up front. I haven't turned in many claims, but I have had the experience of "testing" my homeowner's policy. There is no requirement to replace lost or damaged property and the insurance is against damage/loss, so why would you only pay market value on something that has coverage for replacement value?

[Randal]

I had a friend whose house burned (I had tools over there for a project), he had just put a nail in the wall of his workshop for a clock. He nicked a wite and his house burned that night. Totaled. I had to help him figure out both what he had and it's value, he only had market value, not replacement, and he had no problem maxing out the claim. Most people can't afford full replacement value on everything. You'll have to talk to your agent and decide the best risks for yourself. (I had to replace my own stuff, including my tablesaw)