NLIC.org

Colleen Said:

Auto mechanic tools got stolen in robbery, but insurance won't cover $20,000 loss??!!!?

We Answered:

Speaking as an AIC and former adjuster (I currently oversee insurance claims handling)..... the Boss's policy will usually only cover the Personal Property (PP) that is in his care, custody and control. Typically, tools that belong to the employee are not covered under a business owners policy.

However - if you have homeowner's or renter's insurance - the tools would be covered under that policy. You will have to show proof they existed (recpts, photos, etc) and your policy may only cover actual cash value (ACV). (The cost of the used item - not the value to replace it..... BIG DIFFERENCE! Most people don't get this)

If you can afford a replacement cost value (RCV) policy - go for it. That means the coverage will pay for the full cost of replacing the item.....

less your deductible of course.

Soooooo....if you've got the coverage...call you agent (or claims dept) and file the claim. $20k is a lot to lose out on.

Goodluck!

~jifr!

Glen Said:

I had about $2000 worth of tools stolen out of my truck tool box. Will my auto insurance cover this?

We Answered:

Auto policy will not cover your personal property in it. Check with your homeowners company. If the tools are used for business purposes there is going to be a limitation. The limitation will vary from 250 to 1000 depending on the company. If the tools are used for personal use only then you would have coverage on them under the homeowners policy.

Tiffany Said:

What does property damage on car insurance cover?

We Answered:

The fire damage to the car would be covered under Comprehensive coverage you have on the car. The deductible would apply. If you do not have comprehensive coverage -- then your insurance company can not pay for the damage to your car.

(property damage liability - pays for damage you cause to other peoples property. You can't be liable to yourself)

As far as the child safety seat goes -- some companies give the benefit of the doubt and cover that as part of the comprehensive claim on the car and others will put that under the homeowners.

As far as the tools and other personal property in the car go -- the auto policy will NOT pay for those. Those items would have to be claimed under your homeowners or renters policy -and your deductible would apply. If you do not have a homeowners/renters policy - then there is no coverage for these items.

The policies have language in them that prevents overlap.
The auto policy specifically excludes damage to personal property and the homeowners policy specifically excludes damage to automobiles. This way each is insured under the most appropriate policy.

Wallace Said:

My tools were stolen from the car dealership i work for they said their insurance wont reimburse me?

We Answered:

The thief. Honestly.

Your employer is NOT responsible. Most employers do NOT carry coverage for employee's property on their premises.

And, the standard homeowners policy has a built in limit for your busines property - sometimes the coverage is for as little as $250.

So, you're going to end up eating this. Yes, I know, it's probably thousands of dollars of tools. If you want tool coverage, you either have to add it on specially to your homeowners policy and pay extra for it, or buy a seperate policy for it.

Sorry.

Ross Said:

Does any kind of insurance cover this?

We Answered:

He can buy coverage, called "inland marine" coverage to cover his tools in transit. However, it's subject to a deductible, and MOST tools aren't going to be damaged from being dropped that far, even if the box is dented.

Auto insurance covers your CAR, not the stuff in/around it. Homeowners has an exclusion/limitation, for stuff you use in business, and, it's on a named perils basis, so "oops I dropped it" isn't covered.

Ben Said:

Will home owners insurance cover contractor's injury?

We Answered:

Most homeowners policies have medical payments coverage that applies to a third party without regard to fault. The problem is that the limit of liability is usually quite low because it is intended to pay for immediate emergency type of expenses. Most policies cover only $1,000. with the opportunity to endorse a higher amount but few increase the standard amount.

You said it will be a long time before he works again. Medical payments will not cover loss of wages.

The plumber needed to purchase a health insurance policy and a disability policy. Otherwise he has to sue his own client and prove that the homeowners negligence was the direct cause of his injury.