Insurance for "garage shops"

[l u k e]

I'm curious how the garage shop guys keep their machines insured? My shop value will out weigh the value of my home after my next purchase, so it is a concern I'm not sure how to handle.

[slatern44]

Your equipment in your garage will not be covered under a home owners policy anyways if you are using it for profit. You need to have business insurance and the location is your garage shop. This covers everything in it and if you burn down your house with a fire in you mill or lathe it will cover it. I was told that you can buy insurance for it just like a classic car or wife’s wedding ring, just pick a replacement value and you pay a part a percent of it. But they told me if you have a business name or any type of record that you are using that thing to make money then it not covered anymore. I'm not an insurance agent, but I did a bunch of reseach on this when I started my shop two years ago and was thinking of starting in my garage.

[l u k e]

OK, thanks. That's kind of what I was expecting but wasn't sure...

[LeeWay]

My homeowner's does cover the out building which is my shop, but it's only like $25000 for the building and it's contents. This would replace the building or my machines right now, but not both. Different states may also have different rules or policies too. Lots of changes to insurance and policies in recent years.

[slatern44]

I agree with you, every company has different policies on how they state the difference between hobby and business. I would just make sure that you do your homework and pick what level of risk your willing to take. Also make sure that you have liablity insurance on the products that you make and for customers that visit your shop.

[l u k e]

Thanks guys..