Insurance during the build

[wareaglescott]

Curious on opinions and what people have done about insurance during the build process?

If I have 40k in parts sitting in my garage for a semi assembled non running vehicle and something happens, say theft or some house catastrophe, is that better to cover under a homeowners policy or has anyone just went ahead and insured the vehicle for the sum of the parts?

Thanks

[Timb]

Robin at Midwest insurance covered mine during build

[Gumball]

Hagerty will also offer coverage for in-progress builds and restorations.

[DaleG]

Call your homeowners insurance Co. Found I was covered for parts until it was registered.

[slaga]

My homeowner's policy covered mine while it was parts in my attached garage. I sent my car off to be finished by someone else and had to get insurance. The first person I called was Robin at Midwest. They do not offer the type of coverage I was interested in once the car was complete. Their usage and mileage restrictions were too strict for what I wanted. Errands to the grocery store, big box store, etc. were prohibited as well as taking the car to work. I was honest in telling him he did not offer the coverage I was seeking once the car was complete and that is when Robin told me he had no interest in insuring my car during the construction phase and said bye. It was a rather abrupt end to our conversation. I ended up with American National for construction phase and have every intention of continuing to use American National once the car is completed.

[insurance guy]

most homeowner policies would cover this under the property section of your policy ( same as your garage tools ). You will be covered for the named perils of your policy.

[wareaglescott]

Thanks for the answers. I did speak to the homeowners company (USAA) and they indicated it was covered while it was a pile of parts.

[cChrisM]

If covering under your homeowners, just make sure there is no sublimit or other exclusions, read your policy. Unless you have it in writing in vey clear and specific terms, don't take some agent's word for it.

[BC Huselton]

Just moved from S Carolina to N Carolina with my unfinished 818. I had coverage with the Corvette National Museum. They cannot cover in NC. Anyone have recommendations for NC that are Agreed to value but not just restricted to going to shows or car events?

Thanks, BC

[wareaglescott]

Not sure about the state but I ended up going with Midwest Classic when I decided to ship the car to the painter and it would be out of my possession and they seem to cover everywhere. May give them a try. I have an agreed value with no restrictions.

[boat737]

I too am currently in the process of shopping for insurance for California. (the car has been registered, but still in the build phase getting ready to ship out for body and paint work.)

I have contacted 4 agents, 3 of which do customs/restorations/classics/builds. I thought I settled on Midwest, but in filling out the application, I see that I can't even drive it to the store or other errand. Pretty restrictive, too much so that it seems I can only drive it out and back (to nowhere and home again), or to a car show. Back to the drawing board and more investigation. I am currently insured with my home insurer, AAA, but it is for "market value" only, whatever the heck that ends up being. That's OK for temporary, while I go-kart and build, but not for the finished build.

Has anyone used NCM? They are a vendor on this forum.

[DaveS53]

I had over $40K in my car on the day I started and over $60K near the end. Hagerty will insure your car for any reasonable value, both during construction and after. They do not have the mileage restrictions that others do. I insured my car for $80K after I started driving it more. That's more than I could sell it for but about half what it would cost to have it rebuilt by a pro.

My neighbor who is an Allstate rep told me not to depend on homeowners insurance during construction. Although you may have some coverage, it's likely to be inadequate.

[wareaglescott]

I too am currently in the process of shopping for insurance for California. (the car has been registered, but still in the build phase getting ready to ship out for body and paint work.)

I have contacted 4 agents, 3 of which do customs/restorations/classics/builds. I thought I settled on Midwest, but in filling out the application, I see that I can't even drive it to the store or other errand. Pretty restrictive, too much so that it seems I can only drive it out and back (to nowhere and home again), or to a car show. Back to the drawing board and more investigation. I am currently insured with my home insurer, AAA, but it is for "market value" only, whatever the heck that ends up being. That's OK for temporary, while I go-kart and build, but not for the finished build.

Has anyone used NCM? They are a vendor on this forum.

Surprised you say that about Midwest. I have them and don't have any restrictions on using it for an errand. Maybe it is different in California. I have unlimited mileage and an agreed value policy. My car is restricted to/from work. I would never consider driving my car to work but if I did desire to I could have paid more to get an endorsement to cover that.

[boat737]

Surprised you say that about Midwest. I have them and don't have any restrictions on using it for an errand. Maybe it is different in California. I have unlimited mileage and an agreed value policy. My car is restricted to/from work. I would never consider driving my car to work but if I did desire to I could have paid more to get an endorsement to cover that.

Yup, looking at the application right now. Quote: Usage is restricted to occasional pleasure driving, car shows, parades and club events. Vehicles are not to be used for daily transportation, commuting, business or to run errands. (in addition to other restrictions, i.e 1000 miles per year.)

Why have the car if you can only take it to a car show?

[Misterfubar]

Surprised you say that about Midwest. I have them and don't have any restrictions on using it for an errand. Maybe it is different in California. I have unlimited mileage and an agreed value policy. My car is restricted to/from work. I would never consider driving my car to work but if I did desire to I could have paid more to get an endorsement to cover that.

Midwest told me there is a 20% surcharge if I wanted to drive mine to work up to 30 times a year, and I was restricted to 6,000 miles and from running errands and such. The price was very reasonable, but I didn't like all the restrictions.

[mcwho]

I have had insurance from Midwest since a month or two after kit arrival. Cheap piece of mind. I will have to reread my policy, don't believe I have all those restrictions. I will double check my policy!

[wareaglescott]

Yup, looking at the application right now. Quote: Usage is restricted to occasional pleasure driving, car shows, parades and club events. Vehicles are not to be used for daily transportation, commuting, business or to run errands. (in addition to other restrictions, i.e 1000 miles per year.)

Why have the car if you can only take it to a car show?

My use restrictions are layed out in my policy and they are not those. My restrictions mention hauling and commercial use. I have unlimited mileage. Yours is either California specific or that is the base insurance on the application subject to change at a higher premium would be my guess.

[boat737]

Midwest told me there is a 20% surcharge if I wanted to drive mine to work up to 30 times a year, and I was restricted to 6,000 miles and from running errands and such. The price was very reasonable, but I didn't like all the restrictions.


My use restrictions are layed out in my policy and they are not those. My restrictions mention hauling and commercial use. I have unlimited mileage. Yours is either California specific or that is the base insurance on the application subject to change at a higher premium would be my guess.

In any case, these restrictions are just too onerous. I'll be contacting NCM and/or another local classic car insurer here. Hopefully, it's not a just a California thing.

[Jeff Kleiner]

I'm well aware that insurance varies widely by state but as an FYI to others... we have all of our vehicles insured with State Farm; the roadster has the same liability, comprehinsive and collision coverage as our daily drivers, $35K agreed value, no limitations for use or mileage. Less than $200 annually. You've got to find an knowledgeable agent willing to do the research to write the correct policy for our cars. My friend Bart checked with a different local State Farm office and was told that they couldn't insure his. He called my agent and after taking in his title and registration info along with a few photos had coverage that afternoon.

Jeff

[wareaglescott]

In any case, these restrictions are just too onerous. I'll be contacting NCM and/or another local classic car insurer here. Hopefully, it's not a just a California thing.

My point I was trying to make but not doing a very good job of is that those restrictions on your application may not be all that is available to you from Midwest. FWIW and comparison when you shop it I pay $601 per year for unlimited mileage and the relaxed restrictions vs what you mentioned. When you get some other quotes if the Midwest price seems like a good price maybe just check with them specifically on what is available to you at what cost. Good luck whoever you go with and hopefully none of us need to ever make a claim!

[boat737]

My point I was trying to make but not doing a very good job of is that those restrictions on your application may not be all that is available to you from Midwest. FWIW and comparison when you shop it I pay $601 per year for unlimited mileage and the relaxed restrictions vs what you mentioned. When you get some other quotes if the Midwest price seems like a good price maybe just check with them specifically on what is available to you at what cost. Good luck whoever you go with and hopefully none of us need to ever make a claim!

Thanks Scott. Yeah been out of town, out of state and out of the country a fair amount lately, and haven't actually talked with too many on this. I'll start to get some calls in and get some voice to voice info when I get some time at home.

[slaga]

In any case, these restrictions are just too onerous. I'll be contacting NCM and/or another local classic car insurer here. Hopefully, it's not a just a California thing.

It is not just a California thing. I was told of similar restrictions when I spoke to Robin at Midwest and I live in Texas. There were no options for a less restrictive insurance policy from Robin at Midwest. At least that was the case about 2 years ago when I was looking.

[Blue MK3]

Just moved from S Carolina to N Carolina with my unfinished 818. I had coverage with the Corvette National Museum. They cannot cover in NC. Anyone have recommendations for NC that are Agreed to value but not just restricted to going to shows or car events?

Thanks, BC

I'm in NC and am covered by Infinity. Inexpensive and no restrictions. Your rate will probably be based on your age, driving history, etc. Contact Kay Hagen at 919-278-6595.

[BC Huselton]

Thanks for the help...I will call Kay. Where are you in NC? I am in Cary.

CNM is great with reasonable rates and restrictions. I had to leave them because they cannot operate in NC. They must have a physical office in the State to deal there.

[japollon]

I own several older or classic sports cars and have them insured with a combination of Chubb, Grundy and AAA in California. The rates are very reasonable, all policies are based on agreed value and not one of them have any restrictions. There is a lot of competition in the classic car insurance marketplace and in California they are eager to get your business. Like most others, my homeowner's policy covers me during the build stage of the Cobra.

[boat737]

I own several older or classic sports cars and have them insured with a combination of Chubb, Grundy and AAA in California. The rates are very reasonable, all policies are based on agreed value and not one of them have any restrictions. There is a lot of competition in the classic car insurance marketplace and in California they are eager to get your business. Like most others, my homeowner's policy covers me during the build stage of the Cobra.

Hmmm.... My AAA agent told me flat out, market value only (and we have all the other cars and home and boat through them.) They will not do agreed or stated value. Who's your agent or what county is Petaluma? I would like to stay with AAA, but I don't want to get stuck with a $20k settlement check if the car gets totaled or stolen. Maybe I should go to another AAA office. This is getting very frustrating for me. It shouldn't be this hard.

[japollon]

I'm not at home at the moment but let me look for her name and number when I arrive. Will be later today. Petaluma is in Sonoma County. North of San Francisco.

[mcwho]

This thread has me interested in exactly what my INFINITY insurance policy has. Thought I had an agreed value clause. mine is 37500, which is kinda low I think, but I also don't see anything about Theft coverage.

[bobl]

Interesting. I live in Texas. Got my incomplete car insured for agreed value through Robbin at Midwest last year. No restriction on use or miles. Cost was around $500 a year for $40,000 agreed value. After I finished the car I moved my insurance to State Farm where I have everything else. They wrote an agreed value with no limitations of $50,000 for $600 a year. I bet the variations have to do with not only what state, but what city you live in. Certainly is confusing.

Bob


It is not just a California thing. I was told of similar restrictions when I spoke to Robin at Midwest and I live in Texas. There were no options for a less restrictive insurance policy from Robin at Midwest. At least that was the case about 2 years ago when I was looking.

[mcwho]

This is hypothetical, say you have homeowners and your car is garaged there. Who would most likely pickup the coverage FIRST if the car is stolen out of the garage?

I would thik it would be the Homeowners policy.

[boat737]

This is hypothetical, say you have homeowners and your car is garaged there. Who would most likely pickup the coverage FIRST if the car is stolen out of the garage?

I would thik it would be the Homeowners policy.

I don't know and I haven't looked, but I betcha the homeowners policy has a standard exclusion for vehicles. That sounds like something they would do.

[Papa]

My homeowner's policy will cover damage to my vehicles if the structure causes the damage, i.e. collapse of the building. Theft would be limited to loose parts up to $1000, so a separate policy for the car will be purchased as soon as it arrives. I have American National Property and Casualty. They have a classic car product called CHROME, but it also has limitations for cars under construction. I'll likely be buying Haggerty insurance, which offers a rider for cars under construction at agreed value for ~$20/year on top of the regular insurance policy. In any case, be sure to ask your insurance company very specific "what-if" questions and have them explain which legal clauses in your policy apply to which situations and what their limits of coverage are for each case.

A couple of years ago, Colorado had some pretty bad flooding that prompted me to call my agent to purchase flood insurance. After asking a ton of questions, I learned that flood insurance doesn't cover water damage if my basement were to fill up with water, but would only cover damage to the structure such as the home being moved off the foundation or damage to the foundation itself. My basement is finished and I wanted coverage to protect that investment. Flood insurance would not, and my basic insurance policy would only cover above-grade portions of my home except for sewage backups. I ended up buying a rider that specifically covers damage to the basement from water damage other than sewage backups. Had I not asked the right questions, my agent would have happily sold me a product I really didn't need. My home sits on the crest of a hill, so flood damage (per the insurance company's definition) would be very unlikely, but water damage from "seepage" is a very real possibility.