Insuring shop and tools...

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I recently finished building my shop, and realized I was likely underinsured.  After speaking with my agent, I increased the coverage amount on the actual building, which will cover fire, weather damage, etc.  Now, I found out that this does not cover the actual items in the building, just the structure itself.My agent advised me to "schedule" anything I wanted to insure in the building.  My question is, where do you draw the line on what to cover specifically and what to file under miscellaneous?  So far, I have listed all of the large ticket items, including my welders, lathe, large saws, chainsaws, etc.  But what do I do about all the "extras" in the shop?  I mean, do I list all the cordless drills, grinders, woodworking tools, etc?  What about large roll around tool boxes?  I have a couple of these filled with a variety of tools, so how would you file these?  How do you file a tool box fool of Proto, Snap On, MAC, Craftsman, and chinese tools?  Also, what about torch sets, tanks, and gauges?    One thing I have done is to take detailed pictures of everything in the shop, which includes pictures of the model number and serial numbers (where available).  I just a little confused on how this stuff should be filed.  I guess the best thing I can do is simply sit down with my agent, but I was curious to see what others have done in this scenario.Also, for anyone who has suffered a fire or theft, how well were you covered?
Reply:Jason, I suffered a theft once, I was insured for replacement value and only recieved about 50% of what it took to replace the stuff.  Talk to your agent and make sure replacement is at current value, not the depreciated values as were used when I made the claim.  Seems even though a tool is warranted for free replacement for life, it looses value at an alarming rate.  Just one thing to consider so you dont get a head ache added to an already bad situation.BobI'm spending my Kids inheritance, I dont like him that much anyway!!!!!!Enuff tools to do the job, enough sense to use em.Anybody got a spare set of kidneys?  Trade?
Reply:Bob,Was that a stipulation of your policy?  I'd hate to suffer a similar fate, especially if the amount paid out won't even begin to pay for replacement items!
Reply:Jason280,I did what you did.  I took pictures, made a list of purchase prices of each item (many approximated), and added it all up.  I was actually surprised how much money I had spent on tools over the last few decades!   Next, I told my agent I needed coverage for the billion dollars of tools I owned.  They added the coverage amount that I requested (replacement costs).  However, I'm going to have to call them tomorrow and request that they specifically define what replacement cost really means.  Rbeckett,Thanks for sharing your experience!  Replacement cost to me means that they have to account for current pricing.  The insurance company may in fact define replacement costs differently.Semantics!
Reply:I have 2 policy's. My homeowners thats raised to cover all my "hobby" tools, and my Inland Marine that covers all my business tools.  I probably still should have 3 or 4 times the coverage that I do. I don't have to schedule anything under $1K with the home owners and $2.5K IIRC on the Inland Marine. The Inland Marine covers the tools anywhere, at home, the truck, on the job... I believe you can get similar coverage as an individual as well. ( that or start a small "home" business and get coverage that way) The Inland Marine is designed to specificly cover tools, where most home owners policies are not and may have exemptions. My home owners policy won't cover "business tools" for example. So where do you draw the line between my commercial table saw that I use as a general contractor vs my Syncowave 200 thats a "hobby" machine? What if instead I was a pro welder that did woodworking as a hobby with the same tools? At least with my blanket Inland Marine I can cover any "questionable" tools with no issues.That said it's amazing how much all those little tools add up to. I'd bet the value of all those small individual tools exceeds all the big ticket items at least 3 or 4 times if not more.You've already done a big part, photographing and recording the serial numbers. Be sure you have a written list as well, as much as a pain this is once you've gotten a good sized collection together. Be sure you have copies of all this in 2 places, say in a safety deposit box at the bank, and in the house, just in case of fire or theft, even if it doesn't effect the tools, redoing all that is a real pain.Check with your agent, but remember, he's in the business to sell you more insurance. Also regardless what he says, the company is in business NOT to pay any more than they have to on a claim. You can have the greatest agent in the world, but if you get a azz for the claims adjuster you'll fight anyways..No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth! Ronald Reagan
Reply:Sometime you can get an agent to write a Stated Value policy.  This way you will know what they will pay.  You might find it quite pricey though.Tough as nails and damn near as smart
Reply:I have the inland marine policy as well, to cover my stuff in the garage-shop, on the truck and on-site.  It is a non-depreciated replacement value policy, with $100 deductable.  The insurance total value is available in $10K increments.MM350P/Python/Q300MM175/Q300DialarcHFHTP MIG200PowCon300SMHypertherm380ThermalArc185Purox oaF350CrewCab4x4LoadNGo utilitybedBobcat250XMT304/Optima/SpoolmaticSuitcase12RC/Q300Suitcase8RC/Q400Passport/Q300Smith op
Reply:I'm really going to have to talk with my agent, its as simple as that.  I just want to make sure the items are fully covered at current replacement prices, not at a depreciated rate!