Insurance during restoration

[Dean Jenkins]

I'm doing a "restomod" of a 1968 el Camino.
It did not run when I bought it, was a roller that I planned to do full frame off on, so I never added it to my insurance policy.

Over time I've invested a lot in parts and labor (Brand new LS3 from GM, T56 Magnum, Holley serpentine kit, QA1 coil over kit, Wilwood brakes, Speedway 9 inch housing/gears/axles, lots of new sheet metal, etc. you get the point.)

I realized I have a big investment sitting there and started wondering if my homeowners policy would cover it in case of fire, storm damage, theft, etc.
Checked with my agent and the answer was a definite NO.
Said I could add it to the car policy and in the event of a claim they would do the insurance company thing and come up with a market value for the claim, which would be peanuts for a non-running, non-assembled car.

So I looked into Hagerty's classic insurance. Really helpful and perfect for the situation.
They don't do valuations, you just tell them how much you want to insure it for, and your particulars, and they quote a price.
Since it is not on the road, it was cheap!
I insured it for $50K for $383/year.

Once it runs, we'll update the policy.

Was thinking others might find that helpful.

 

[Barry]

Perfect!!

 

[chevman]

You might want to check with them again, I'm paying $115 per year for one under construction insured for $50,000, three others issured for lessor amounts at a lower cost. Maybe they missunderstood and are charging you for collision.
edit: I have Haggerty

 

[1_Wild_Cat]

Wow...Chevman -- That is a screaming deal. I pay that for $15K from Hagerty for my under construction '64 GTO.

I also got mine after checking with my insurance agent about coverage under homeowners (not covered at all). They would not write an auto policy for it either - since according to them a car without an engine in it is "car parts".

 

['68 Coronet R/T]

I went to the Department of Motor vehicles and had them list my car as off road due to restoration or something like that.
Talking with my home owners insurance agent, he said that if it was listed as such, it would be covered as "contents" should anything happen to it while in the garage.
Once the car is road worthy, I will then get automotive insurance and the DMV will issue new registration and plates for it.
Did this with my R/T as well.

Maybe give your home owners insurance agent a call and see if this would apply for you. Saving $400 a year for a 10 year restoration project (which it took me) is a win.

 

[Dean Jenkins]

You might want to check with them again, I'm paying $115 per year for one under construction insured for $50,000, three others issured for lessor amounts at a lower cost. Maybe they missunderstood and are charging you for collision.
edit: I have Haggerty

It's not collision, clear about that. Washington state insurance commissioner just made a change that insurance companies cannot consider credit scores when determining rates, which made a lot of folks prices go up dramatically. Don't get me started . . .
I'm sure zip code, crime rates, distance to fire station etc. all come into play.
It is a fair price for me for peace of mind, and it will be 2 years max before it is on the road, hopefully sooner.

 

[ksungela]

I have my projects and finished cars insured with American Modern Insurance through NCM (national corvette museum). You tell them how much you want it insured for and send some pics to verify. Very reasonable prices. https://www.ncminsurance.com/tag/adam-boca/

 

[Raymond_B]

I've been looking at Grundy and they have some really nice prices. However I have not chosen them yet because they have a lot of questions about original engine, how much HP over stock etc. Those of you with modified performance vehicles how does that affect prices?

 

[chevman]

I used one company for decades and didn't know they wouldn't cover a car being restored.

 

[Dutchman]

If you have a business, don't skimp on insurance. Local shop wanted to cut his insurance cost, long story short, business burnt down, insurance didn't cover hardly anything. Yes, high end custom shop loaded with cars and trucks. All gone, unable to rebuild shop. Ended up losing everything and closed up shop.

 

[Dean Jenkins]

I've been looking at Grundy and they have some really nice prices. However I have not chosen them yet because they have a lot of questions about original engine, how much HP over stock etc. Those of you with modified performance vehicles how does that affect prices?

Hagerty didn't ask, just how much I wanted to cover it for. I liked that.

 

[RosharonRooster]

I need to look into this because I have a bunch of money tied up in 60yr old rusted steel right now

Forgot to add, in the past I've used American collectors insurance. Pretty good rates. Hagerty won't insure cars with modified suspension last time I checked with them. I've never had to file a claim so not sure how good they are at that. I do know that stated value and agreed value are 2 different things

 

[Sparky]

And that’s the magic question…how do you know how good the insurance company is if you haven’t filed a claim with them. I have learned some tough lessons…and those lessons are usually buried in the fine print.

I have insurance on all the usual things, but man, I always feel like I’m betting against myself and the odds. It’s all math and the laws of probability…they know them well and have gotten filthy rich off all of us.

 

[1A Rock]

they know them well and have gotten filthy rich off all of us.

How true, insurance companies usually don't bad investments.

 

[RosharonRooster]

And that’s the magic question…how do you know how good the insurance company is if you haven’t filed a claim with them. I have learned some tough lessons…and those lessons are usually buried in the fine print.

I have insurance on all the usual things, but man, I always feel like I’m betting against myself and the odds. It’s all math and the laws of probability…they know them well and have gotten filthy rich off all of us.

That's exactly what insurance is, it's a bet against yourself.

 

[Barry]

Grundy and Hagerty, the feedback I get from customers, are both fantastic to deal with.
Hagerty has an edge if your a body shop fixing one of their customer's cars because they order all the parts you need.

I would have the house insurance guy that said covered under contents put it in writing.
in not buying that statement.

 

[Chris_Hamilton]

I need to look into this because I have a bunch of money tied up in 60yr old rusted steel right now

Forgot to add, in the past I've used American collectors insurance. Pretty good rates. Hagerty won't insure cars with modified suspension last time I checked with them. I've never had to file a claim so not sure how good they are at that. I do know that stated value and agreed value are 2 different things

They do insure modified vehicles but under a different "umbrella".

Modified Car Insurance: Street Rods & Replicas | Hagerty

Hagerty offers specialized coverage for modified cars, street rods, hot rods, replicas and muscle cars. See if your vehicle and usage qualify. Learn more.

www.hagerty.com

I've only heard good feedback regarding Hagertys and insurance claims. Several other "Classic" insurers are bonded through regular Insurers, the names we all know like Allstate and Progressive. The company you think you are dealing with are just resellers. When a claim is made you have to deal with those companies and adjusters. Adjusters who try to write the repair as cheaply as possible. And not have any knowledge of Clsssics. Read the fine print before making a decision.

 

[Raymond_B]

They do insure modified vehicles but under a different "umbrella".

Modified Car Insurance: Street Rods & Replicas | Hagerty

Hagerty offers specialized coverage for modified cars, street rods, hot rods, replicas and muscle cars. See if your vehicle and usage qualify. Learn more.

www.hagerty.com

I've only heard good feedback regarding Hagertys and insurance claims. Several other "Classic" insurers are bonded through regular Insurers, the names we all know like Allstate and Progressive. The company you think you are dealing with are just resellers. When a claim is made you have to deal with those companies and adjusters. Adjusters who try to write the repair as cheaply as possible. And not have any knowledge of Clsssics. Read the fine print before making a decision.

That's good info. I just got quotes from Grundy and Hagerty. Grundy is $300.00 a year vs $908.00 per year with an agreed value of $40,000.00 for almost identical coverage. But a 1/3 of the cost makes me wonder...

 

[Chris_Hamilton]

Grundy is affiliated with Safeco which is a Liberty Mutual company. That's who actually underwrites the policy.

Find Agents

Find an insurance agent who sells Safeco Insurance. Independent agents provide choice, expertise, ease, and advice. Safeco, great coverage at a great price.

insurance-agent.safeco.com

 

[RosharonRooster]

They do insure modified vehicles but under a different "umbrella".

Modified Car Insurance: Street Rods & Replicas | Hagerty

Hagerty offers specialized coverage for modified cars, street rods, hot rods, replicas and muscle cars. See if your vehicle and usage qualify. Learn more.

www.hagerty.com

I've only heard good feedback regarding Hagertys and insurance claims. Several other "Classic" insurers are bonded through regular Insurers, the names we all know like Allstate and Progressive. The company you think you are dealing with are just resellers. When a claim is made you have to deal with those companies and adjusters. Adjusters who try to write the repair as cheaply as possible. And not have any knowledge of Clsssics. Read the fine print before making a decision.

Good to know. Its been a while since I've had Hagerty. Probably 15yrs.