Earlier this week a thread was posted for an entire workshop contents for sale in Asheville. Now, I can't find the thread anywhere. Did the owner retract the thread? Did he sell his workshop?
What Happened To Workshop For Sale In Asheville?
- Thread starter Wiley's Woodworks
- Start date
I am not seeing it but it was posted by @Boomvader
@Boomvader deleted the thread.
A woodworking buddy suffered significant damage to his shop in the flood. I volunteered to do the legwork for him on replacing his shop. The insurance company for his home and contents is starting to give him a hard time on coverage for his shop. Timing is just wrong to look at your package.
Any details on "hard time on coverage for his shop " means from an insurance perspective? It may be useful info for all here to hear. May of us hear Im certain, are underinsured. Thanks!
As explained to me by an insurance adjuster and an insurance agent, if you use tools or shop to make money, regardless if you call yourself a business or operate as a business, or regardless if you make a profit, insurance can treat the tools / shop as a business and that is not covered under a standard home owner policy.
Oh yes, agreed . once you have a "business" by definition, its no longer a hobby shop. Many reasons to not have a "business" running.
the tricky part is "business" vs "hobby" in the eyes of the insurance company. When I had a claim, they basically said if I sold anything, they view as business vs personal. They don't view anything as "hobby" if money is involved.
This is an excellent explanation of the dilemma we woodworkers face with our money making hobby shops. Add in the next 3 posts by Daniel and Chris. The only thing I can add is that separate insurance for this type of woodworking shop is nutso expensive. It's a catch 22 conundrum that has to be answered on a case by case basis.
FYI insurance companies apply this logic (?) to any type of hobby--automobile restoration, ceramics, quilting, jewelry making, leather crafting...anything. We woodworkers just chose a hobby that requires a much larger investment in our tools of our trade. A full blown automotive shop is the only hobby I can think of that can get this expensive.
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My entire shop is a hobby shop....
Hopefully you never have to file a claim that involved any equipmentMy entire shop is a hobby shop....
What makes you say that? Am I doing something wrong?
You should try road racing. There's a joke: "Q: How do you make a small fortune in racing? A: Start with a big one."
Insurance won't care that you call it a "hobby", if they see you make money (and by make I mean sell something, not make a profit) they could consider it a business and deny claim on a homeowner policy. Especially nowadays when insurance is looking for any excuse to deny a claim.
(and on a side note, boy has this thread topic diverged!)
I have never sold something I have made. BUT I have donated things I have made to a charity to be sold and then participated in the event that sold my things. Hmmmm. Hope I never have a claim.
Seems like you would be ok in this scenario as long as you didn’t claim any value to your donated item (or just claimed cost of materials).
PS. The right answer to the question “is my hobby-selling covered by my HO insurance?” is likely: ask your insurer.
A quick Google suggests insurers may have a threshold eg. <$2k of sales/year.
-Mark
But, be aware, asking questions can open a can of worms
I know from experience, same home owner insurance for over 30 years, called and asked about starting a potential business from home, and within 30 days we got a notice they would not be renewing the policy.
Correction: call DANIEL’S insurance company and ask. LOLBut, be aware, asking questions can open a can of worms
-Mark
I make gifts for family and friends.......
