Insurance for shop/barn?

blunosr · Mar 13, 2013

When you guys build a shop or barn, what do you tell the insurance agent you're going to do with it, or put in it?

I told the agent I was going to work on my old tractors, store implements, and have a little wood working shop in it... she quoted me $3600/yr.

I was astounded! I expected $400/yr...

What would they have said if I told them I was putting hay in it?

What's your advice on the best thing to tell them I'll put in my shop/barn, or use it for?

I think I'll get into the self-insured business...
Thanks,

Troy

Anonymous-0 · Mar 13, 2013

she has no idea what she or you is talking about. time to call around or go with your last sentence.

Nathan (SD) · Mar 13, 2013

I dropped my insurance too. Rates kept going up. Was told by 2 different agents that since the building was over 50 years old it is considered more hazerdous. I had already paid them enough to build a new one.

Dr. Walt · Mar 13, 2013

If you have a standard "Home Owners Policy", make
sure that you have the rider for "Adjacent
Buildings", and you are covered. I also carry an
extra rider just to cover my tools. My bill runs
about $1100. per year total.

gene bender · Mar 13, 2013

Time to look for another agent. Try your local Farm BUREAU agent how much is your house and contents?

Bruce from Can. · Mar 13, 2013

You buy insurances again risk. If you can aford to rebuild after a loss,you take the risk . If you cannot ,you sell that risk. Size and type of building/and end use of building will increase or decrease the amount of risk corverage. That is how I buy insurance, if I am perpared to eat the loss, then I don't spend money to insure. Bruce

MarkB_MI · Mar 13, 2013

Do you own an actual farm? Then your best bet is a "Farm and Ranch" policy, which will cover you for liability related to the farm as well as hazard insurance for your shop. Rates are typically much cheaper than for commercial policies.

Homeowners policies normally include coverage for detached buildings, typically up to ten percent of the value of the home itself. Depending on what your house is worth, that's probably enough for the structure but wouldn't go very far to cover the contents. I don't have any additional insurance on my shop but I probably should.

If you don't intend to run a business out of your building, I would just say it's "storage" and leave it at that.

Whichester1 · Mar 13, 2013

I think you are being quoted rates for a commercial operation rather than and a storage building/hobby shop.
Wood burning heat will also greatly increase your rates.
Suggest you get another agent(s) and get additional quotes.

JOCCO · Mar 13, 2013

An old logger called it Finlanders insurance (a my fault policy)!!!!

casecollectorsc · Mar 13, 2013

If you have painting supplies in there it goes sky high. My agent told me "I don't want to know what goes in there after I leave". If it burns down it was all put in after he was here.

VaTom · Mar 13, 2013

My homeowner's policy is also 10%, so I raised the house coverage to give reasonable protection for my outbuildings. The contents of the outbuildings are covered on my homeowner's, so long as nothing is used commercially.

Had a recent claim from a large oak hitting one building. First check was $19k, remainder upon repair completion. While the adjuster was here I took the opportunity to ask about a number of things, including my large amount of machinery. Fully covered, so long as nothing has unusually high value as "collectable", which should have a rider. Any machinery damaged off my property would not be covered. The assumption is it was then used commercially.

No need to say "storage" for a farm outbuilding when it's full of obviously often used tools. My farm buildings contain tools and tractors. Non-commercial as I'm a "tree farmer".

Much depends on which insurance company. I had a very unpleasant experience over a fire-damaged tool claim with an Allstate independent adjuster several years ago. This time couldn't have been easier, the adjuster is an insurance co. employee.

Rick Kr · Mar 13, 2013

Mine is an extra $160 a year.

Rick

GeneMO · Mar 13, 2013

That is so far off base it is comical.

I think you need to go by your Farm Bureau office.

A couple of hundred bucks should insure a farm shop.

Gene

David G · Mar 13, 2013

Get a home/farm policy.

I do not know what the wood heat adds.

dhermesc · Mar 13, 2013

I've found FB to be great if all you want is a peice of paper saying its insured for bank purposes or what ever. For actual coverage that will pay if something happens you'll want to go somewhere else. 30-35 years ago everyone in my family connected in any way to farming had FB, today not one family does.

BIL thought I was being an ***hole when I told him the issues we had with FB when he bragged about being named "FB Family of the Year". Then his 80 year old barn burned down taking their 4H pigs, a tractor and some other equipment with it. Apparently if you want coverage on the contents of the building you are supposed to specify them. He doesn't have FB anymore either.

Anonymous-0 · Mar 13, 2013

I use FB and only insure the contents. Building insurance is pretty expensive and contents are the most expensive items. Buildings are already guaranteed by the builder/supplier for weather related failures which is everything but fire and vandalism. Decided to chance those two issues.

Bspauld · Mar 13, 2013

Any insurance Company I have ever dealt with wants to know what they are insuring, My FB agent comes out to the house once or twice a year to check on my coverage. I have never had any problem with them, A neighbors barn burned taking 17 tractors with it, they paid. Any collector tractor should be specified in the policy,

cole in mo. · Mar 13, 2013

For the time being I've got fb, the last wet heavy snow damaged the roof on one of my machine sheds, woman at fb said, sorry we don't cover that.

Insurance for shop/barn?

blunosr

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Anonymous-0

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Nathan (SD)

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Dr. Walt

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gene bender

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Bruce from Can.

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MarkB_MI

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Whichester1

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JOCCO

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casecollectorsc

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VaTom

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Rick Kr

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GeneMO

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David G

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dhermesc

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Anonymous-0

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Bspauld

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cole in mo.

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