Had to do an estimate for contents insurance recently...

[Brian Ashton]

I've not had to do it since I moved to Australia but the need came up recently. So I went through the drawers and such tallying up what I've found… The estimate came to just under $50,000. It was an eye opener that's for sure, considering the overall tally for the entire contents of the house was $110,000. I have two stationary tools, a lathe and bandsaw, that are collectively valued at $11,000. Other than that everything else is hand tools with a value of about $39,000. That's a lot o crap! What's more, I'm not a collector so I don't have 5 #3 planes, 22 saws, or anything like that they're, for the most part, one offs.

I'm not bragging but that's a lot of money spend on tools. And when you consider the average cost for an individual tool is about $200, that's a lot of tools. Half the houses insurance is in the garage. Don't think I'll share this info with the wife.

[Hilton Ralphs]

What's the deal with insurance in Oz in terms of having an asset register? Do you require one and if not how to prove what you had in the event of a theft or fire?

I know some (most/all) insurance companies will wiggle out of a claim over the smallest detail. If your tools are not in a room that's physically connected to the main house then soz for you.

Out of interest, what do you pay per month to insure the $110k? Just trying to see what the percentage is compared to over here.

PS. I see your boys pulled an escape of note today at the Gabba.

[David Weaver]

Figure when you add everything up, you'll get something around that if you've accumulated tools for a while. Especially if your policy is replacement cost. If you have a bunch of carving tools, you'll find you have a couple of grand just in a bucket of those.

My company doesn't require a schedule, and I've never had to make a claim, but I'd expect that life is a lot easier if I have a video of what's in my house. I go through my basement and shop once every 6 months or so to get a current video of what's in there. Even if the insurance company paid your claim, can you imagine trying to remember everything you have? It only takes 5 or 10 minutes to get a video catalog of it.

[george wilson]

Don't tell them you have a dust collector. They will cancel your policy.

[Tom Vanzant]

As in "dust + air + spark = BOOM!" Just call it a two-stage vac and all is well...maybe.

[george wilson]

Yes,they seem to hate dust collection systems.

[David Weaver]

I'm sure they have data showing that dust collection systems have a higher fire risk by a lot if they care that much. The question is whether or not they have a good baseline of structures that have dust collectors in them, or if their data is skewed because they know a lot more about places with losses that had dust collectors than they do about all places that have dust collectors (i.e., the risk looks higher than it really is due to bad data?) . Who knows. I don't have trouble believing that older data with all metal dust collectors and all metal runs and a lot of heavier commercial use would show a fire risk.

Be interesting to know what they had on modern non-commercial use, though.

[Bill Houghton]

Heck, if $300 is a lot of money, $39,000 has to be even more.

[Malcolm Schweizer]

I am going through the same process, but since I live in the hurricane belt and just insurance on the house not getting blown away/flooded/earthquake, etc. is $7,000/year, I am barely able to afford to insure the contents. My tools, although I have yet to fully tally them, will add up to about the same $50k. Just one drawer of planes is about $2,500 alone. It adds up fast. Try explaining how one Wenzloff saw is worth $300 that to the uneducated looks like a plain old handsaw. I now keep all my tool receipts. Take lots of photographs too!

There arises issues when you say "workshop." Sometimes it is better to say "Hobby Room." A hobby room conjures up visions of sewing and building model airplanes. "Workshop" conjures up images of electrical hazards, severed limbs, and flying debris. Actually, come to think of it, that pretty much describes my workshop!

You also get discounts for various things, but you may need to ask for it. Ask if you get a discount for:

• Alarm System
• Shutters (if you live in a storm zone)
• Smoke/Fire Alarms
• Sprinkler system
• Dead-bolt locks (sounds silly, but I once got a discount for having dead-bolts)
• Security bars/doors.

[Brian Ashton]

What's the deal with insurance in Oz in terms of having an asset register? Do you require one and if not how to prove what you had in the event of a theft or fire?

I know some (most/all) insurance companies will wiggle out of a claim over the smallest detail. If your tools are not in a room that's physically connected to the main house then soz for you.

Out of interest, what do you pay per month to insure the $110k? Just trying to see what the percentage is compared to over here.

PS. I see your boys pulled an escape of note today at the Gabba.

What it comes down to here is you have to anticipate the insurance companies will do any and everything to not pay. They proved that is spades in Queensland when they had some pretty big floods a few years back. At least half the insurance companies refused to payout any of their policy holders simply because the flood that took place didn't fall into their definition of what a flood should be. I don't know how anyone can say a river that has risen and inundated your house is not a flood but they did. The public, media, and government backlash was massive but they were totally unrepentant.

There is an asset register but what is required to be on it is extremely vague and with a lathe that would cost around 17,000AUD to replace I can't afford to rely on the insurance company to say it should be fine if I don't register it - their track record is abysmal. I've got it in writing that it's fine but if the need arose to fight it I have to anticipate they will fall back on a typical tactic of saying if I don't like our ruling take us to court… Which in this country is near impossible to pull off regardless if you have a solid case - and they know that.

I have individual pictures of every tool so they'll have a hard time denying that.

Contents alone is about $500 a year with $1000 deductible. So pretty much nothing will be fixed on insurance, just theft and fire damage.

I wasn't watching but I'm hoping the english can beat the convicts at least a couple times before heading home.

[Brian Ashton]

Don't tell them you have a dust collector. They will cancel your policy.

My dust collector consists of my lungs. Or if things get too cloudy I open up the doors at both ends of the garage and let the neighbours deal with it.

Figure when you add everything up, you'll get something around that if you've accumulated tools for a while. Especially if your policy is replacement cost. If you have a bunch of carving tools, you'll find you have a couple of grand just in a bucket of those.

My company doesn't require a schedule, and I've never had to make a claim, but I'd expect that life is a lot easier if I have a video of what's in my house. I go through my basement and shop once every 6 months or so to get a current video of what's in there. Even if the insurance company paid your claim, can you imagine trying to remember everything you have? It only takes 5 or 10 minutes to get a video catalog of it.

Ya I first started buying tools when I was 17. I've never bought cheap stuff either so it's added up over the years. The wife was wanting an explanation as to why half the value of our house was locked up in the garage. If I were still living in Canada I could probably halve the replacement value and be even less if in the US. I'm hoping sooner than alter I can box my stuff up and send it to our next adventure.

[Derek Cohen]

What it comes down to here is you have to anticipate the insurance companies will do any and everything to not pay. They proved that is spades in Queensland when they had some pretty big floods a few years back. At least half the insurance companies refused to payout any of their policy holders simply because the flood that took place didn't fall into their definition of what a flood should be. I don't know how anyone can say a river that has risen and inundated your house is not a flood but they did. The public, media, and government backlash was massive but they were totally unrepentant.

There is an asset register but what is required to be on it is extremely vague and with a lathe that would cost around 17,000AUD to replace I can't afford to rely on the insurance company to say it should be fine if I don't register it - their track record is abysmal. I've got it in writing that it's fine but if the need arose to fight it I have to anticipate they will fall back on a typical tactic of saying if I don't like our ruling take us to court… Which in this country is near impossible to pull off regardless if you have a solid case - and they know that.

I have individual pictures of every tool so they'll have a hard time denying that.

Contents alone is about $500 a year with $1000 deductible. So pretty much nothing will be fixed on insurance, just theft and fire damage.

I wasn't watching but I'm hoping the english can beat the convicts at least a couple times before heading home.

Hi Brian

What is the good of an insurance company if they do not insure? It reminds me of a line by Seinfeld when his hire car at the airport was missing: "You guys know how to make a booking, but you don't know how to keep a booking".

I use CommInsure (Commonwealth Bank). They only require itemisation when the value exceeds $2000.

Like David, I go around the house and workshop taking photos. It's quickest. I have always meant to put together a spreadsheet, but never find the time or enthusiasm. Sort of avoidance of the truth or not providing my wife with evidence!

This thread is opportune as I have just taken delivery of a new combo thicknesser-jointer/planer (Hammer A3-31) which, together with a bandsaw (Hammer 4400), are the only power tools that are worth over $2000. I have a Marcou handplane that costs new in this range. Otherwise there is nothing to itemise.

It would be interesting to put values on the handtools one owns. For some tools, such as LN or LV hand planes and saws, one would strive for the replacement cost. That is easy enough to establish. However, what about vintage tools, both hand and power? There is so much variation because of condition and intangibles that are part of the collector value system. Imagine the arguments that will ensue as a result. Perhaps it is worth itemising these and obtaining an "agreed value" And then what about tools one makes for oneself? How do you place a value on these?

There is not only floods to be concerned about. There are fires and theft. At least the family will not venture into my shed if I am not there.

Regards from Perth

Derek

[Chris Parks]

A lesson I learned from a friend who had his workshop cleaned out is list everything with photographs. It is not the item value it is when you have to claim there is no way you will remember everything. After his claim and re-stocking months later he was finding that he did not remember stuff and only found out when he needed to do a specific job. Go into your house tonight and list everything you can remember and then compare it to what you actually have. I bet you will be surprised at the disparity.

[Jim Matthews]

A lesson I learned from a friend who had his workshop cleaned out is list everything with photographs.

+1 on this !
Make certain the photographs clearly show the maker's name and model number.

You'll need to produce a catalog listing, if valuation is in question.

Check your policy for replacement value of items like these, they may require an additional rider.

The place to start is with an agent, and read the contract.

http://www.wolleranger.com/insurehobby.html

[george wilson]

True about the catalog listing. I had this kid who mowed my lawn steal a BIG 3/4" commercial electric drill from my lawn building years ago. They wanted a catalog listing which I could not find. I just gave up and forgot it. I hear the kid's thieving family had a shed full of stuff they'd stolen from neighbors.