The most boring forum thread today about insurance

[FDLWproject]

Hi everyone -

My kit is due to be delivered in ~1 week. I've seen lots of posts about insuring the vehicles post-registration/titling/etc. But I've not seen many regarding how to ensure (ha, insure) coverage while the kit is being completed. Some parts may be covered via standard homeowners policy through contents coverage (depending on provider), but curious if anyone has looked into this. My primary concerns would be theft/fire while it's being built - and being SOL and out a LOT of money!

Thanks!

[JohnK]

Check with your insurance agent. As you said, some homeowners policies have blanket 'personal articles' coverage in the event of fire, but that amount is usually limited. You could also consider a separate personal articles policy. They're typically used for higher value items like jewelry or artwork, but depending on your insurance company it might cover an in process build as well. Lastly, depending on your state and insurance company, I have heard of folks getting an actual auto insurance policy for an in-process build. Long story short, talk to your insurance agent to see what's available in your area.

[F500guy]

I have Amica and since my kit will be delivered in 2 weeks, I just sent a note to my agent yesterday to clarify the parts/chassis during build and about post build after titled. I will post what I find out next week.

[Alan_C]

I have obtained insurance for my MK4 and my current Mustang project during construction. Robbin at Midwest Insurance has obtained the insurance for both. Now you will find that the coverage limit may be lower than you would like, but usually about 60% of the parts cost can be insured.
It is wise to do this as many things can happen while the car is being constructed. A case in point, a gentlemen in Colorado lost his nearly complete Mustang restomod when a direct lighting strike on his house resulted in a fire that destroyed the house and attached garage, very sad. Talk with your existing broker regarding the belief by some that your kit and parts is covered under you homeowners personal property clause, it is not. When I discussed my project with my State Farm agent, they made it clear that personal property was only covered up to about $5K and is usually applied to tools, not a incompletely assembled car. If you are told differently, get it in writting as you don't want to be on the losing end of an insurance claim.

[KayzDad]

I called my State Farm agent (home and cars) when my kit was delivered in late April. He told me my homeowner's policy would cover the kit until it was drivable, at which point I'd need an auto policy. He clarified that the car would not need to be licensed, or even licensable, to be considered "drivable".

I'll follow up when my kit is further along.

[Alan_C]

A very different response than my State Farm agent in Arizona. I suggest you ask your agent for what he has said in writing with the agreed value on the kit and components. If he won't put it in writing, then you know what the value of his statement is.

[JohnK]

Your homeowners policy rider should already clearly articulate what the maximum personal articles coverage amount is, and what it covers.

[RBachman]

Dittos on what others have said. When it starts to look like a car and less like a pile of parts, start thinking about a policy.

[Blitzboy54]

My homeowners policy covered it.

[F500guy]

Follow up, Amica will cover the parts during the build as other insurance carriers. Considered personnel items. But, they will not cover the car after it is built and operational. Now, just need to review the policy to ensure "Personal Property" max value is sufficient.

[FDLWproject]

Thanks everyone. I spoke to USAA who covers my home insurance. They were very confused about even the whole idea of a ‘kit car’ haha.

‘Soo is it a car?’
‘Well, it will be’
‘Ook’

They said it would be covered during the build under my homeowners contents. Of course I saved this conversation, but I don’t know that I trust that they would actually honor it. I’ll look into the other solutions everyone has offered.

[rponfick]

Thanks everyone. I spoke to USAA who covers my home insurance. They were very confused about even the whole idea of a ‘kit car’ haha.

‘Soo is it a car?’
‘Well, it will be’
‘Ook’

They said it would be covered during the build under my homeowners contents. Of course I saved this conversation, but I don’t know that I trust that they would actually honor it. I’ll look into the other solutions everyone has offered.

I would get it in writing. I learned long ago that a verbal agreement was not worth the paper it was written on.

[JohnK]

An e-mail from your agent will not do you any good if it's not in your policy. It should be simple enough to pull up the contract terms of your insurance policy and check for yourself what the personal articles coverage amount is, and what it does and does not cover. Your agent should be able to e-mail you the specifics of your policy if it's not available in an online portal.

[Blitzboy54]

Thanks everyone. I spoke to USAA who covers my home insurance. They were very confused about even the whole idea of a ‘kit car’ haha.

‘Soo is it a car?’
‘Well, it will be’
‘Ook’

They said it would be covered during the build under my homeowners contents. Of course I saved this conversation, but I don’t know that I trust that they would actually honor it. I’ll look into the other solutions everyone has offered.

I’ve been with USAA for over 25 years. They are a first class company that has gone well above and beyond the couple of times I’ve had a claim. I would not be the least bit concerned about your coverage.

[Alan_C]

When discussing with these agents, did you all disclose your were talking about $30K plus in parts including the kit, engine, transmission, brakes, and on and on. Often these folks do not have the perspective of just how much we have invested in one of these projects during construction. As was said, it is good to be trusting of a verbal response, but verify that they would cover a very large loss. I have a rider on my State Farm policy when I discussed the value of just my tools, let alone the parts in my garage.

[Windsor]

USAA usefulness varies state-by-state.

I had them for my auto and homeowner policy back in 2003 with less-than-positive results. I was happy to unload them in 2012 when I sold that house.

[Scott L]

State by state is the important part. Insurance products vary by state. It is important to do your homework.