I need some help covering personal use tools

May 2, 2019

  1. Libbyc

    Libbyc New Member

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    I am an independent agent in the state of Washington and I have a complicated client that has stretched my known resources. I am hoping someone might know of a solution... Here's the situation:
    • Father and adult son jointly own a home that another family member rents from them. There will be a dwelling fire policy in place for it
    • There is a large shop/storage building on site that father and son maintain care/custody/control of, where they jointly store and work on project cars, as a hobby. The dwelling fire policy will have increased other structures coverage for this building.
    • They estimate that replacement cost on the tools in the shop would be approximately $100,000.
    • Father has a preferred homeowners policy for his primary residence that will allow me to increase the internal limit for theft of tools to $50,000, with coverage for 30% of their total personal property stored at another location, so his half of the tools is covered.
    • Son's primary residence is a manufactured home and the carrier dad has will not write a manufactured home on their standard homeowners policy.
    • The highest internal limit for tools I can find on a manufactured home is $10,000 and the most coverage I can get extended for property at another location on these policies is 10%.

    SO! I have been on the hunt for an inland marine (or similar) policy that will allow me to write blanket tools for personal hobby use at a stated property. I have been striking out (I have even gone as far as to contact my commercial carriers to see if any of them would do it, but the coverage is either not available on a standalone policy, or they decline to quote because the tools are not used professionally). Does anyone know of a magical market I could reach out to? We have access to quote a few MGA's, but when I have contacted my underwriters, they are stumped on a market that would consider this, too. I am open to a manufactured home policy that would allow for this coverage (keeping in mind that there needs to be coverage for the personal property at the primary residence as well) or anything else you can suggest.

    PS - I know that the chances of this client purchasing a separate policy for the tools is less than 10%, but I want to be able to document my due diligence and would love to have an answer on this for future.

    Thanks so much for any help you can offer.
    Libbyc, May 2, 2019
  2. fed up

    fed up Guru

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    Can always ask the Mac or Snap On man to inventory and see if he can write theft coverage. Or make sure that they carry tools back and forth in their vehicles so the Stored at another location doesn't come into play
    fed up, May 2, 2019


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    Could you sell them a BOP or an IM on the business if you wrote it as a mechanic with tool coverage and they were a sole proprietor? Do they ever sell any cars or parts for it to be considered a business? (It doesn't have to be a successful business).

    Also do you have the ability to add anything to the dwelling fire policy?