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President
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1,349 Posts
Discussion Starter · #1 ·
My shop is located behind my house. For as long as I can remember, my dad, as well as I have insured this building as a seperate structure under my home owners policy.

However, shopping for a cheaper rate, auto, home owners, umbrella, GL, an insurance company wants to wrap my shop up under my general liability policy.

Currently my shop is insured for $100k replacement value. Replacement of the equipment? Ya it's a gamble :eek:

However the insurance company that I spoke with we shall call it bobs insurance.. Says the building, should be under a comercial policy of its own. I don't think so, as the only business that really takes place here is parking my work truck here and a few ladders and some material storage. The rest of my crap has NOTHING to do with my business...

Anyways, my home owners as it is now with my shop, my house is insured for 240k replacement cost. With a 100k rider for my shop. The cost is $600 per year.

However, bobs insurance, pegging my shop as comercial with the same coverage, is $1500 a year.

Bobs insurance agent says my shop is not properly insured... Wtf does that mean?!

My customers never step foot in here. Infact, I'm pretty paranoid as to who I let in here... Not cause of insurance, but this is MY SPACE stay the hell out!

How do you insure your shop? Is it tucked in under your home owners? Or is it a separate policy?
 

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GC/carpenter
GC/Carpenter
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43,313 Posts
Get a new insurance company and don't tell them it's a shop. Sounds to me like you only use it to park in and keep some tools. It's no more a shop for a GC then a carpenter who puts his tools in his garage.
 

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GC/carpenter
GC/Carpenter
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43,313 Posts
IMO I would not refer to it as a shop. That's probably where the confusion is. Didn't you say it's only being used to park your truck in and house a couple ladders and some material? Your truck insurance should cover you there, and for the 1500 bucks a year he wants to charge for your premium, you can buy a lot of ladders with.
 

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Sluggin away
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1,393 Posts
Its depends on several factors but primarily what your existing policies coverage and exclusions define what a "home" business is....

Many policies will allow incidental business exposure if receipts are $2500 +/- per year. If contracting is your full time gig and you gross more than $2500 +/- and dont have a shop off premises and you advertise your home address as your business address then yes you could have a problem.

I would have a commercial policy for your tools (inland marine) bundled with your commercial auto and you commercial general liability.
 
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