# They Just Cancelled My Home Insurance



## spunwood (Aug 20, 2010)

Last year, I was foolish enough to ask my insurance company how much it would cost to insure my tools. Unfortunately, they decided that I am running a business…but I make less than $3000 a year from it and it is really a hobby for me.

Well, I am in the market for a new company, since Safeco/Answer Financial dropped me.

Anyone have any suggestions, other than keeping my mouth shut?


----------



## Bertha (Jan 10, 2011)

I've got Liberty Mutual, I think. I've never made a claim, though, so I'm not sure whether they're worth a crap or not.


----------



## TopamaxSurvivor (May 2, 2008)

Go to Hartford through AARP


----------



## DLCW (Feb 18, 2011)

I went to my local insurance agent and he was able to find a really good insurance package for my business. It includes *product liability*, facility coverage, inventory coverage, tool coverage, and *umbrella liability* coverage of $5M. It covers me when working on a customers site or when customers come in to my shop. I have local high school woodshop kids come and tour a few times a year and my insurance company said I'm covered for that as well. So very happy going through my local insurance agent on this one.


----------



## DrDirt (Feb 26, 2008)

Wow - surprised they cancelled it outright. 
I have State Farm, they did say that if I was doing anything business related in the shop then - the shop contents would NOT be covered under the replacement value policy -only the building since it is part of the house.

Came up because we got a rider to cover the tools because of value.

DLCW how expensive are the insurance packages? Obgiously you can choose less than $5M and different deductibles - - depreciated cost instead of replacement cost and on and on and on…
I'm just wondering - Is such a package prohibitively expensive for a hobbiest that might make craft fair items like spunwood where you are only talking a few grand in sales?


----------



## richgreer (Dec 25, 2009)

I'm not going to recommend an insurance company other than to say I think most people are better served by smaller companies that serve only a few states. I'm very happy with West Bend Mutual which is based in Wisconsin and only serves the upper mid-west. There is probably a similar company near you.

As an FYI - I spent my entire career in the insurance industry as an actuary and I think that gives me some insight into insurance company operations.


----------



## DLCW (Feb 18, 2011)

DrDirt - My annual premium is around $1200 paid in monthly installments. I figure for the piece of mind it is worth it especially the product liability coverage. As Rich indicates, my insurance agent and underwriter company is regional and serves the northwest. My agent takes care of everything for me and reviews my policy with me on a quarterly basis to make sure everything is how I want it.


----------



## Gene01 (Jan 5, 2009)

I agree with Rich. The regional carriers are usually your best deal. 
That being said, we went with AAA for both auto and HO. 
After we retired and began traveling, we just felt that AAA gave us more benefits. And their HO costs are not out of line. Plus, I don't know of any regional carriers in AZ.


----------



## DrDirt (Feb 26, 2008)

Thanks Don - just trying to figure if the premiums are more than a hobbiest would ever make/recover and what a good breakeven is for where it becomes attractive to try this.
Suppose also the Liability depends on what you are making.
e.g. I see little liability for making cutting boards, but bunk beds "designed for Kids" is more risky.


----------



## spunwood (Aug 20, 2010)

Hey guys, thanks for the suggestions. Interesting stuff. I am going to look up regional carriers for here in TN.


----------



## patcollins (Jul 22, 2010)

If you were ever a member of the US armed forces I would check out USAA.


----------



## spunwood (Aug 20, 2010)

Well, after a few days of looking around I ended up with Westfield insurance through a local broker. I am really happy with the rates and coverage…and yes, they are covering my tools, thought they are not "hobby" insurance.

It was a bit stressful, considering I had just a few days to do this, but in the end I think it was worth it to get a better deal.


----------



## KYJeepGuy (Sep 19, 2011)

We have Westfield as well, home and auto, the shop was not a problem at all. This last summer, I was mowing the yard for the older lady next door and I accidently grazed the side of her home with the mower tire. The outer skin of her Dryvit popped off, evidently it was improperly installed and my grapefruit sized spot revealed massive problems. Westfield immediately covered the area I damaged, no problems at all.

I agree that local agents are best for negotiating policies. Our agent really worked with us on my shop and jeep coverage, and gave us lots of options.


----------



## MsDebbieP (Jan 4, 2007)

the trouble with not mentioning the hobby business is that if you do have a claim and they see that you had a business then they won't give you any $$


----------



## superstretch (Jan 10, 2011)

I was just in to my local state farm office for my discount double check .. my agent said that all my tools were covered, even if I used them to build pieces that were to be sold, but within reason-as in I wasn't operating as a dba or LLC out of my shop.

State Farm has always been awesome to me.. great rates, great service, and don't care about my hobbies or mammoth rottweiler.


----------



## TopamaxSurvivor (May 2, 2008)

When my wife's Aerostar burned, State Farm low balled us saying the vehicle was faded, oxidized, worn out and poorly maintained. The fire marshal took a picture of it in which you could see the reflection of the adjacent vehicle in the parking lot. That is not oxidized, faded and poor finish to me. The local ford dealer was the only person maintaining it every 3 or 4 months. It had very low miles for its age. Good luck if you ever have a claim with State Farm. We would probably still be with them if they had made us a reasonable offer on the Aerostar, but we are saving over $1,000 a year moving to Hartford ;-))


----------

