home insurance

Is it a business?
My carrier (AAA) won’t cover woodworking as a business, but they cover me for my hobby.
A manufacturing business presents MUCH more exposure for an ins. co. and, is a whole ‘nother story. Not typically handled by your typical homeowner’s co.

-- Gene 'The true soldier fights not because he hates what is in front of him, but because he loves what is behind him.' G. K. Chesterton

Are you wanting to run your shop as a small business or hobby?

BTW – I like your website, it sounds like you are kinda semi-business/semi-hobby. Basically working on a commission as people see your items. I actually hope to be doing what you are in the future.

So my question is this, are they saying they are not going to cover your HOME if you have a workshop in your basement, or are they saying they aren’t going to cover your workshop in terms of content cost?

If they aren’t going to give you Homeowners insurance because you have a shop in your basement, that is a serious issue and something you are going to understand as to WHY they aren’t going to do that. I really can’t figure out why they wouldn’t give you Homeowners insurance, maybe they aren’t keen on running businesses out of the basement? You don’t have a small kiln or other fire hazard down there do you?

My insurance company is very clear. As long as my woodworking is only a hobby (i.e. I make no money) they are okay.

In my case, I sell products at a craft fair once per year and all proceeds are donated to charity. I think my insurance company is okay with that, but I have not asked and I don’t plan to.

-- Rich, Cedar Rapids, IA - I'm a woodworker. I don't create beauty, I reveal it.

Rich who are you using? I’m in Iowa too (Des Moines), and I am using Nationwide. I haven’t contacted them about it yet, because my shop is in my 3rd stall and figure it would be covered by contents, but I have been thinking about contacting my agent just to get his opinion.

Rich -
I think that you really should ask your agent about your coverage (or lack thereof). I suspect that the act of selling your stuff makes you a “business” which could cause you a lot of grief if you ever had a problem. The fact that you donate your proceeds probably doesn’t matter.

-- Adversity doesn't build character...................it reveals it.

Try this link: https://www.insuremyhomebiz.com/index.asp

-- I don't make mistakes, only design changes....www.dgmwoodworks.com

Paul, I do insurance for a living and the replies on here pretty much nailed it. If the tools are used for a business they will more then likely NOT be covered. If your only selling items on occasion you might want to check with your agent and see what that companies policy is on that. If they are personal use tools then they are covered.

Also, it would be a good idea to take pictures of your tools and keep in safe spot. Another thing you should do is have some kind of list of what you have and what you paid for it. If you have replacement cost coverage on your contents then knowing what your spent on the tools and having the list will be important if you should ever have a fire or anything.

-- Dan - "Collector of Hand Planes"

I am in Tennessee, so things may be different for you of the northern inclinations, but I get my insurance through Farm Bureau. They are used to insuring farms which are almost always businesses. Thay don’t have a problem with my shop; I did add a rider to cover the cost of my machines. Even with the rider their rates are better than the regular homeowners policy I had before.

-- Michael :-{| Diapers and politicians both need to be changed often; and for the same reason.