Slalom4me

While browsing through the "Guide to Policy" for a home insurance
policy, I noticed that spare car parts are only covered to a max
of $1,000 in the Special Limits of Insurance section.

Since $1k would not begin to cover the value of new parts, take-offs
and other motorsports bits I have on hand, I asked my agent about a
rider or an endorsement to increase coverage to a more realistic level.

After checking, the reply was that there is nothing available under
either a home or auto policy. The rationale given by the insurer
is that the typical home owner would not have more than $1K worth
of spare auto parts on hand. In the view of the Insurer, anyone
that does must be storing "inventory" intended for resale, rather
than destined for personal use. They do not want to find themselves
covering "inventory" of an undeclared home-based business.

Have others here discovered similar limitations in their home policy?
Has anyone arranged for coverage of spares?

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wallyman424

what, next theyre gonna tell your wife how much jewelry to have, or how expensive her couches can be? ITS A DOUBLE STANDARD I TELL YA!

96GS#007

Never looked, but not surprising.

Having said that, they're really out of touch. $1,000 won't even cover a set of wheels much less all the other stuff I have laying around.

FWIW, lots of people in the Seattle area where I live keep two sets of wheels...a summer set and a winter set with "traction tires" (often required to traverse the mountain passes to get to the ski areas in the Cascades ). Depending on vehicle, I bet $1,000 is a bit short in that regard as well.

John Shiels

guys with collector cars must have an answer for parts insurance.

davidfarmer

I've had tools and parts stolen, and it was all covered, no problem. Just a deductible of course.

I don't think they even asked WHAT the items were, just got a copy of the police report. I had a few thousand dollars worth of tools, a brand new Powerdyne Supercharger (used to sell them for Mustangs), and even an expensive lawn mower stolen. Again, it wasn't officially a business and they asked no questions.

0Randy@DRM

I just got done with all that crap last month. The insurance companies are just crazy. I don't have a lot but my garage is the hardest to protect and with the most cash tied up. Easiest to get into, fastest to steal everything, easiest place to start a fire, easiest place to get hurt. But has almost no coverage.
I had a huge fight about a couple guns, because they didn't have serial numbers in 1920 (Grandpa). Worth the most, but can't be insured for any amount. I was able to find special insurance on the web. It was very cheap and makes me sleep good at night.

But my friend has a little hail storm and they went over and wrote him a 26,000 check. For his SUV that gets used-abused for his business, and his wife's 7 year old minivan. Because he is too lazy to clean the garage and park his "nice" cars inside. He didn't even make a phone call, they came to his door and cut him a check.

Randy

AU N EGL

We have an insurance rider to cover my wifes jewelry and my live in mother-in-laws, extensive art collection.

Think you can get insurance riders for just about anything, Tools of trade are covered to a point, then one may need business insurance.

Race car insurance would cover all those tools, spare parts, the car, trailer everything but during the race itself.

ScaryFast

The bottom line is simply that it's not worth their time to re-write policies for millions of insured citizens for the handful of us that have car part lying around. Like it or not, they're in business to make money...

Slalom4me

In addition to the motorsport enthusiast's collection of regular and
specialty tools, I have some less common items like a borescope,
Chassis Ear and so on. Ditto for the other hobbies/interests I follow.
Then there are the metal working items.

I've been told that as my personal belongings, these are all covered
under the policy. I intend to document the extent of these items
and present a list to the insurance company but I am not looking
forward to the response as I believe they will conclude I am running
a business (I do little work for others and none for payment).

Regarding spare parts, 96GS#007 has an excellent point I hadn't
considered - season wheels are common here and the value of
wheels & tires in $CDN easily doubles the $1,000 insurance limit.

Here are the Special Limit amounts for other items described in
the policy. Looks like the gardening lobby has exerted some
influence (but don't keep more than 1/2 oz of bullion at home.)

• $5,000 - Books, tools, instruments, computer hrdwr
  & software pertaining to a business, profession or
  occupation, but only while on your premises
• $6,000 - Securities in all
• $500 - Money, including cash cards or bullion in all
• $3,000 - Watercraft, accessories, trailers and motors
• $2,000 - Utility trailers
• $2,500 - Animals, birds or fish in all
• $2,500 - Cemetery plots or markers in all
• $10,000 - Lawn mowers, snow blowers garden-type
  tractors and other motorized gardening equipment in all

I don't disagree that my circumstances are out of the norm
and I don't object to paying more for coverage. I am just
disappointed that there does not seem to be any provison
to do allow me to do so at this point.

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rustyguns

what insurance company?

rustyguns

i have a collector policy through Grundy...500 bucks for spare parts i need to change that!

dvandentop

wow 1.000 is all better check with my state farm buddy

mwvettec5

I have my C4 track car, spares, tools, and enclosed trailer insured with Hagerty.

You can insure a car & trailer for whatever stated value you decide and also add however much value you place on spares, tools or etc - of course the policy cost reflects this.

I'm paying about $300 a year to cover the above eveywhere except on track.

Slalom4me

Thanks for the post.

I see that Hagarty specifically mentions Spare Parts Coverage on
their web site.

The classic policy includes $750 comp coverage for spares, and further
coverage can be added for a premium. Hagarty also advertises that
they write coverage on spare parts that are for vehicles not insured
with them.

This latter insurance appeals to me, but more information is required.
It is not clear whether just parts alone can be covered, or if at least
one auto policy is a prerequisite. Their ability to provide coverage in
Canada is an important consideration.

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Slalom4me

Grundy makes reference to spare parts coverage on their
web site, but it is just one item in a list of the types of coverage
they offer. Grundy does not provide further SPC details on-line.

I'll approach them to ask for futher information.

Thanks

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Slalom4me

Is there an issue with contracting with multiple insurers for
non-competing coverage on the same property?

I seem to recall that there is and I understand that an insured
should not be entitled to collect twice for the same incident from
two different insurers. But if one company provides P/L, P/D and
Comprehensive (inc $1,000 in spares) while the other provides
Spare Parts Coverage w/ a $1K deductible - is there a conflict?

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