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Insurance.

Started by Grebo, March 07, 2013, 08:30:01 am

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Grebo

March 07, 2013, 08:30:01 am Last Edit: March 07, 2013, 08:50:30 am by Grebo
We have moved workshop / home & current 'landlord' has dragged in their Insurance agent to add our stock & tools to it. All separate but covered by the same company.
We had insurance before but it was just a ball park figure.

This chappy wants Itemised list of the big stuff, machines & the like & a rough figure for the rest of the materials, tools etc. Well I have started making a list but this is going to take a life time & how to you put a figure on 12 years of material stock, fittings etc.  ???
Help !

Can any of you machine guys, give me some replacement prices for my machines ?
All bought secondhand.
Pfaff 545 H3,
Seiko STH 8BLD 1,     
Reeds sailmaker
The rest are new & I have the invoices for them.

Suzi

JDUpholstery

on the machines, whether new or bought second hand, the replacement value should be the same based on original cost of unit less annual depreciation, so don't short the value of a used machine because you got a good deal. as far as valuing all of your stock goes, I would lump that kind of stuff into a rough guesstimate... the insurance agent probably has no idea of the value of inventory, so your best guess would probably suffice, focus on your big ticket, hard to replace items

brmax

I guess trying to figure out the year it was made if its used, that might be a serial number chase.  But if you got lucky and new when it was made and sold would be great. Im listening for anymore tips on this as im interested bigtime.  A lot of you no this stuff a bit better. 
thanks

bobbin

Late, but! 

I just did this whole thing with my insurance agent.  Replacement means you get a new machine that will do what those you presently own do (how old your present machine is doesn't matter).  It doesn't matter how much the machine you presently use cost, what matters is how much a NEW one will cost.  I know my 5 thread overlock cost me $700, but to replace it would cost $2500 and THAT'S the number that matters! that I paid $300 for my blindstitch isn't important, the fact that it would require $2K to provide a new one DOES. 

Look carefully at the other things in your shop... cutting machinery, presser feet, binding/folding/hemming attachments/presser feet... cha-ching!  How much to replace your benches, unwinding carts, etc.? 

Grebo

Thanks Bobbin,
That confirms what I was thinking, that this guy doesn't know what he's talking about.
He's on about depreciation on what I paid.

How the heck do you do that ?  What is the expected life of a sewing machine ?
I am sure we all have at least one that's past it's sell by date & still going strong.

I will do the replacement cost list & he can go coco. 

Thanks. x

Suzi

JDUpholstery

expected life of a sewing machine, who knows! one of my machines is over 40 years old and sews like a champ...the depreciation of value is not based on what you paid, but what the unit costs new at date of manufacture...if you purchased a 5 year old machine that costs 1500 bucks, but bought it for 200 you still value it at 1500 less 5 years depreciation

baileyuph

Insurance claims would be defined in the insurance policy as to what the coverage is.

Business depreciation, as on a tax return would be based on actual expenditure.  Can't write off what is not spent.  If a used tool is bought, that price is the write off on a tax return.  So, insurance and taxes are probably different when it comes to dealing with the government and insurance coverage.

Doyle