Value of my car while under resto??

[Charles M.]

I'm about to get a policy from one of the usual companies. If the garage burns, or the car is stolen, or whatever happens, I still lose everything whether the car is in pieces or complete. I feel I should have a policy value high enough to cover the total car value no matter what stage the resto is in. The Ins Co say a non-running car is worth less. How do we settle on a value? Help.

-Chuck-

[Roy B.]

Re: Value of my car while under resto??

You could show the prices of other Corvettes sold that are under restro because of the value the parts are .
But many insurance companies take your word if you show that it's a complete Corvette near completion, some company cover your car under home insurance if you let them know .

[Kent K.]

Re: Value of my car while under resto??

Chuck ---- If an insurance company indicates they consider your car is worthless in its disassembled stage, search elsewhere for insurance. Ask them about stated value v. agreed value in case of loss. The archives is chocked full of discussion regarding collector car insurance companies and various persons recommendations for numerous reasons.
Regards, Kent #6201

[Patrick H.]

Re: Value of my car while under resto??

Hagerty just asked for 4 pictures of my 71 rather than the standard one view since it is "under repair." They also allow you to set the value yourself. I picked a value approx halfway between the "finished" value and "finished minus cost to finish." As you pay per value, it's up to you to guess right.

Patrick

[Allen Murray]

Re: Value of my car while under resto??

I asked my insurance agent (Farmers) the same question, and he said to insure it as personal property since it is in pieces in my garage. Just be sure to document it with pictures or video. If the house burns down, it will be covered like the funiture and other valuables. Hope he knows what he's talking about.

[D S.]

Re: Value of my car while under resto??

Just a little over three years ago that very thing happened to me on a very cold, sleeting night. An electrical short in the attic of my garage caused a serious fire that destroyed my garage and a numbers matching 1970 Corvette convertible I was finishing restoring and several rare parts (1970 front grilles, 5-port pumps, etc). My insurance company, American Collectors, paid in full plus there was an appreciation clause in the policy that they paid over and above the value. My home insurance paid for the rare parts. I bought another 1970 Corvette convertible two weeks after I got the check.

[Richard S.]

Re: Value of my car while under resto??

In most cases the Homeowners policy Will pay for the damaged parts. The exclusion in the Homeowners policy for damage to motor vehicles is intended to apply to vehicles covered by an Automobile policy. Be sure you have plenty of clear pictures of the parts in the garage. Be sure your "Contents" limit is within the Co-insurance percentage requirement.( Remember, the policy valuation required is "Replacement cost"...ie. "New for Old"...so the values you report for your "Contents" coverage need to be "the cost to replace today" NOT what you paid in the past for your furniture or clothes or the parts.) Make sure your Automobile Insurer is also aware of the values you are assigning to the parts.Once the car is substantially back together buy an "agreed amount" policy from your Automobile Insurer. You may be asked for a professional evaluation to obtain the "agreed amount" policy. Make sure you are well prepared to show the evaluator what current Corvette selling prices are for a Corvette like yours just off a complete restoration. Let me know if you have any questions.

[Ray C.]

Re: Value of my car while under resto??

I am on my third body-off restoration project and have used Hagerty for my insurance carrier. I have pictures posted on a web site of the restoration in progress. Hagerty insurance went to the site and copied the pictures they wanted and as Patrick stated, they let me pick the value. I have increased the value as the amount of money invested increased, I am very pleased with Hagerty.

Ray
#36314

[Allen Murray]

Re: Value of my car while under resto??

That makes sense Rick, and is what my insurance agent told me. Also, I once had a car brocken into that was parked in my driveway. They cut the convertible top and wrecked the inside. My insurance company at the time told me that if the car was in the garage when it happened I would have to file a claim with my homeowners insurance. Since the car was outside, my auto carrier covered it.

[Christopher R.]

Re: Value of my car while under resto??

Allen. Not to argue with you, but this does not sound right to me. Maybe auto and hoemowner policies are different in different states. I know that a homeowners policy will not cover auto parts for an auto in the garage. You might be covered for parts for which there is no car. I know the homeowners policy will not cover the auto in a garage (as opposed to the driveway). If you're right, it's only for some states, and not others.

Moral of the story. Get enough of the right insurance. Get it in writing. Read the policy. When you have a claim is not the time to figure out your coverage.

[Richard S.]

Re: Value of my car while under resto??

You might want to ask a few more questions regarding that advice. I've been an Insurance Broker for 40 years and I can tell you for certain that any claim for damage to the vehicle, resulting from a motor vehicle being broken in to, would NOT be covered under any Homeowner's policy, no matter where in Canada or the US the policy is issued. You have to keep in mind the "intent" of having both policy forms as issued by the Insurance industry.
If your "laptop" is stolen from your car it's NOT your automobile policy that responds to the claim....it's your Homeowner's policy. If your automobile burns during a house fire or is destroyed during a hurricane while in your garage, it's NOT your Homeowner's policy that will respond to the claim for damage to your vehicle.
In the case where the vehicle is apart for restoration, the pieces of the car do NOT qualify as a motor vehicle by the definition of "motor vehicle" in the standard Automobile policy. These pieces also do NOT fall within the scope of the motor vehicle exclusion of the Homeowner's policy.
The motor vehicle policy does make provision to cover "parts" of a vehicle such as a removable hardtop or winter tires while they are temporarilly removed from the vehicle. The Insurance Underwriting community has been through this secenario a million times and experienced claims adjusters are very familiar with which policy applies to which claim as most people have both policies.
The risk to be insured changes when you perform a complete "body off" restoration or reduce the vehicle to the point where it no longer qualifies as a motor vehicle as defined in the Automobile policy. This does not mean that some Underwriter with little underwriting experience will not consider changing the terms of a given policy to cover a specific situation. This is where you better have everything in writing and make sure your Broker knows what he is doing. For those of you dealing directly with your Insurer, without the help of a Broker, you can almost be certain you will have problems following a significant loss. I know it's a little bit cheaper, but I think your taking the "certainty" out of insurance when you don't employ a professional Broker to best represent your interests. And yes, Brokers like anyone else, do make mistakes but they also have Errors and Omissions insurance you can claim against if necessary. Not many people... and none of my Corvette friends.... ever read both their Automobile and Homeowner's policies. These are very technical legal documents which can and do lead to litigation. With the value of our Corvettes climbing significantly from year to year, you don't really want to be gambling that when yours is destroyed you have the right coverage. Insurance doesn't mean anything until you have a loss. If you don't know what you are buying, but buy it because it's cheap or because your friend buys his there, you may be in for a rude surprise at the worst possible time....following a total loss to your very valuable Corvette. Those companies that "specialize" in collector car insurance should be well qualified to give you the advice you need in any given situation. Don't be afraid to ask the question....in writing.