Workshop Insurance

[Steve Ellis]

Dear Forum

We have just (Last Friday) completed on our house purchase in Yeovil.
The property comes with a large 6x6m double garage which we are converting into a workshop so we both have space for our hobbies.

My question is do people insure their workshops, tools etc. and of course their Armourtek kits within the workshop as part of their house and contents insurance or as a separate entity and if so who have you used.
The workshop is separated from the main house by about 8m, so far the insurance companies we have spoken to seem to only insure the contents of an outbuilding or garage up to the value of £1’000.
Not very helpful when a single kit can be worth over £7’000.

I look forward to hearing from you
Steve

[Greg Stephens]

Speaking as a public adjuster in America I am operating on the assumption that the policies in the UK are based on similar principles. A public adjuster represents the home or business owner against insurance companies.

Your contents are covered under Coverage C here. Your tools and projects are covered under this section of the policy. You might wind up with a second policy often referred to as a "rider".

Were it gets complicated is the type of coverage you have and the purpose of your tools and project. RCV and ACV are two types of coverage here for personal property.

ACV is actual cash value. This is what the items are worth after they have been depreciated. Clothes furniture and electronics get a fairly harsh devaluation. It can pay as little as 20 to 30% of the original value. Hard items like machine tools do better. You might be able to demonstrate that an Armortek tank does not really depreciate much.

RCV is replacement cost value. It is essentially the new purchase price. This is by far the best coverage.

If you rent then you need renters insurance. Don't skimp.

The main issue with tools is the purpose for which you are employing them. If you are using your tools too produce income then you need a business policy.

You might be able to argue that you don't really make money and it is just a hobby. But I have seen a lot of people burned this way.

Example:
I had a client who was a fire fighter. His house caught fire while he was on duty. The firemen from another station came and put out the fire. I represented him. His son had cancer. The fireman had started selling T-shirts that said "Screw Cancer". He told the insurance adjuster that the shirts were involved in a non-profit he ran. At the time it was very difficult to start a non profit and he never really bothered.

He almost lost all coverage on his house for because of an application error. He didn't tell the insurance company he was running a business from his house on his application. He nearly had his policy rescinded.

I have a contracting business. I have a lot of tools at my home and industrial location I try to keep them separated. If a work tool was damaged at my home during an event I would not claim it.

Again I am not licensed in the UK and have only casual knowledge about the insurance market there. This should at least give you some talking points with your agent.

[Derek Attree]

Hi Steve
Talk to Walker Midgley they are the company that does model maker insurance and the UK Tank club insurance.
They also do insurance for workshops and tools and models stored within.

Their phone number is 01144 250 2770 and the guy to talk to is Tony.

Regards

Derek

[Kevin Hunter]

Hi Steve

Derek is spot on re Walker Midgley.
Among other things, such as UK Tank Club, they are the insurance brokers for Southern Federation of Model Engineering Societies. If you were to join your local M.E. Club you would automatically benefit from third party (public) liability insurance to cover your personal modeling activities at home. You would still need to buy additional cover for workshop equipment and/or your tank(s) but as a member of a SFMES club you would benefit from beneficial scheme rating.
Might be something to consider?
Regards
Kevin

[Steve Ellis]

Hi Derek

Thank for the information, I’ll give them a call in the morning.

Kind Regards
Steve

[Steve Ellis]

Thanks Kevin
That’s really useful to know, I hadn’t thought of joining the Model Engineering Society.
I’ll lookinti this also.

Kind Regards
Steve.