PSA - Project Insurance

[PNWTim]

I look forward to reading new posts pretty regularly and something occurred to me after picking up some comments here and there (different subjects, OPs and forums) that made me believe there is value in sharing the following. If this has already been thoroughly kicked around and digested, I apologize in advance.

This is specifically about insuring your project - not your completed car. I have read multiple times that many builders equate title and registration with "time to get insurance". Some are probably aware, but for those who are not, your "project" is most likely not covered by your homeowners' insurance or your regular carrier.

It hits home when you start adding up the kit purchase price, drive train sitting around waiting to be installed, $10K in exhaust, gauges, seats, wheels and tires, etc. Most specialty carriers will allow project status with an appropriate "agreed upon" value that can be increased as you progress and then rolled to final coverage once roadworthy.

Again, many probably know this but several years ago this caught me by surprise and based on some comments I have read, I thought others may be in the same boat. Either way, I thought I would share.

[Skuzzy]

One of the things I did when I got my kit, is contact the insurance company to up the "content coverage" amount and sent them a copy of receipt for the kit. Did the same thing for the other high dollar parts.

Also, be sure to take pictures of all the things you have and keep those photos protected. I have mine in a safety deposit box at the bank, along with a copy of all the receipts.

Better safe than sorry.

[tnt_motorsports]

Great point @PNWTim!

When I acquired my MK3 last year I contacted my insurance provider for my house, cars etc and asked them if they would insure my build. I talked this through with my agent, and she had no idea how to do this. She said they needed a title and registration etc. to get started. Well of course I don't have any of that. I tried to explain that I believed she was wrong and there should be a way to cover this package as it gets completed. I explained that if they couldn't insure it as a vehicle, then the other option was via content insurance. Needless to say, neither path work out, so... enter the conversation, Robbin @ Midwest Classic Insurance. He was excellent to deal with and had me insured in just a couple of days. No hassle, no fuss, he has done this for many of these builds and knows exactly what he is doing. I have since reached back out to him with the increased value of my car with the parts I have acquired and added over the last year.

[progmgr1]

`I got an "Agreed Value" policy from American Modern (through Robbin Terry) that covers the cost of parts and has basic liability coverage (in case of a go-karting incident?) for about $200 per year. Considering that I have over $60K in parts sitting in the garage, it's a worthwhile expense.

Keith HR #894

[Stangrob]

This is good info - thanks for the PSA. I do need to check into this myself as I do have a lot of $$$ sitting in the garage right now, and I'd hate to think about having something happen and not being able to recoup any of that. I'll have to make some phone calls.

Rob

[Blitzboy54]

I have/had on both recent builds a 0 mile policy that covers an agreed value of $50k through Hagerty. This was roughly $350 for one year. Huge peace of mind. I converted it to a driving policy when I registered it and put it on the road.

You have to be careful because home owners won't cover cars or car parts. Most vehicle policies will only cover a car with a VIN, I had to shop around to find something that worked.

[Skuzzy]

I have/had on both recent builds a 0 mile policy that covers an agreed value of $50k through Hagerty. This was roughly $350 for one year. Huge peace of mind. I converted it to a driving policy when I registered it and put it on the road.

You have to be careful because home owners won't cover cars or car parts. Most vehicle policies will only cover a car with a VIN, I had to shop around to find something that worked.

Home owners can cover it. Mine does. I have to provide receipts and photos of everything to them in order for it to be covered. My garage also happens to be physically separate from the house. That little detail allowed me to have a different policy for the garage, from the house.

[JeffP]

USAA Homeowners had no concerns covering mine. They even said it would be covered while trailering down from FF.

[PNWTim]

USAA Homeowners had no concerns covering mine. They even said it would be covered while trailering down from FF.

That's interesting. When I moved my Camaro home after bodywork (on a trailer) USAA didn't want anything to do with it. They would insure it as a 69 Camaro but not at the value required. I guess it just depends on who you speak with?

[JeffP]

That's interesting. When I moved my Camaro home after bodywork (on a trailer) USAA didn't want anything to do with it. They would insure it as a 69 Camaro but not at the value required. I guess it just depends on who you speak with?

To be clear this was USAA Homeowners, not Auto. And this wasn't an assembled or titled vehicle like a Camaro would be. Its no different than having a bunch of expensive computers/tvs/jewelry/whatever in your home - its just boxes of parts. Its covered under your personal property coverage which also extends to storage units not on your property. They said this would be in place up to the point that I titled the vehicle (VIN) and would need Auto coverage then.

[flight_83]

hmm, does your home insurance cover personal property? My home insurance covers personal property up to $250,000. The kit resides inside the home so I don't see how it wouldn't be covered?

[PMD24]

Spoke with my State Farm agent today and it is covered under my homeowners as personal property. We verified that my current level of personal property coverage was adequate assuming the car "parts" were an additional $50k, and it was. So, it's covered at no additional cost.