Insurance during construction

LloydGT40 · 10-28-04, 04:11 PM

How have you guys/ladies dealt with insurance during the build. I'm having a terrible time and can't get insurance on what is considered car parts until you can drive it.
Homeowners limit is $500 on car parts. No unlicensed motor vehicles are covered. The car must be 80% complete before they will insure you Pictures required. Have Checked with Hagerty,Grundy and Classic car insurance all same story. 80%
There is a lot of money sitting in my garage with the arrival of #2076 ERA GT40.

LLoyd
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Jim Downard · 10-28-04, 04:19 PM

This is just a thought, and I may be wrong (probably am), but let's say for example, you purchase a gt40 replica for, uh, I don't know, $50,000. That's about what I have in the MDA GT40 I'm buying as a kit. The body has been fabricated, the frame and suspension has also, brakes are there, parts have all been fabricated, engine is there, trasaxle is a complete unit, then as I see it, assembly of the vehichle is all that remains, and is only a minute part of the overall car. From a standpoint of cost and value, what has already been invested most likely IS 80% + of the final value of the car. Ask them to argue against that point. I most likely will be in the same boat in about 1 month.

Jim Downard

Mark Worthington · 10-28-04, 04:22 PM

There are insurance companies who specialize in antiques, classics, hot rods and kit cars. I've heard of policies that insure the car as a rider to your homeowner's policy during construction, then convert to auto insurance when the car is complete.

LloydGT40 · 10-28-04, 04:47 PM

Jim I purcahsed everything to finish the car from ERA so i have a chassi with a painted body attached and a whole bunch of boxes. I also have a new 351w/408 and a new zf sitting in my garage. So i have an expensive collecion of parts. Haggerty wants a picture with the car 80 % assembled. They are not in the bussiness of insuring parts.
My agent has been working on this for several days. Can't put any kind of rider on my homeowners for that much money and no insurance company will insure a car 25% completed.
No insurance company will insure an inventory of parts thats going to be put on the car.
Lots of exposure if something awful were to happen
rock/ hardplace
lloyd

Lynn · 10-28-04, 05:52 PM

Lloyd,

If you bought an ERA that car is way more than 25% completed. That is, unless they are using some off the wall definition of "completed." To me, if you can license and drive it legally it is done: period. The companies I talked to wouldn't touch it if it wasn't 80% complete.

I am afraid that the rationale is that they don't want to make it too easy for someone to get a huge amount of money in a car and then, when they run out of money, time or both, just "accidently" drop a cigarette in a can of gas and POOF turn their wayward project into cash again in a flash (literally and figuratively.)

Lynn

Howard Jones · 10-28-04, 06:15 PM

I think you need to shop homeowners insurance not hotrod insurance. You more than likely have 60 grand or so worth of property in your garage. I would shop homeowners insurance with this as a primary consideration durning the build process. You will need to keep careful records as to parts bought along with bill of sale and recepts. Also pictures would be good on a monthly basis.

You can return to your current homeowners company when you are able to buy a stated value hotrod policy.

I have farmers and I had a stated value writer atached to my homeowners durning the build that was a sum of the parts value. Farmers also had a stated value policy that was a good deal when part of a total insurance package. Multi car, life , and homeowners.

My GT40 @ 50k stated value limmited to 5k miles per year and must be garaged at night is equal in cost to my 1988 chev pickup without colision but listed as my primary vehicle. I also get a 20% redution on my homeowners for having my life with them.

I am not a insurance guy or have any relation to farmers.

Lynn · 10-28-04, 06:36 PM

Yeah Howard, but have you had relations with farmers? That's what I want to know? LOL!!

I think you are right on with your thinking. Don't believe everything you hear about Hagerty and all of those "specialty" insurers though. I can't get insurance from them on my GT40. There is a clause in the NC rules that says they can only insure cars made before like 1970. So I have to try to find a a standard auto insurance company that will cover my car. What a PITA. So there is some fine print behind the "All 50 States" claim of those companies.

Regards,
Lynn

Tim Kay · 10-28-04, 07:46 PM

By the time you try and jump through a bunch of insurance hoops finding who does "this and that" you could've slapped on the wheels, dropped the motor and trans in the car, take pics, invite the agent to look, claim 80% done and be covered, no?

Then go about you business of the serious build. [img]/ubbthreads/images/graemlins/wink.gif[/img]

What the hell, don't cover it at all and live on edge a bit! Somebody here said "if you're not on the edge your taking up too much space"! My $.02.

LloydGT40 · 10-28-04, 08:30 PM

Tim
I believe your thinking along the same path. Put the suspension on. Put on the wheels, drop in the motor, dummy up the gauges, snap a bunch of pics and claim 80% done.The car is painted
I have over 100k invested at this point for a chassi a body painted on the chassi and a whole bunch of parts. I have a 351/408w sitting in my garage with a brand new ZF. its not hard to hit the 100k when you start with a 50k kit.
I don't think at this time i'm ready to start changing homeowners arround to insure a car for short time. I'm just going to work to mock up as much as i can to make the car look complete in a picture.

Lynn
I didn't buy a turnkey. I bought a kit. The body work is done and the body is permanently mounted to the chassi but thats about it i've got to do the rest.

The insurance company want the car drivable to insure it.

You hear all kinds of stories abount people thinking they are covered under their homeowners but as my agent says have you ever heard of someone getting reimbursed for what they lost. Read the fine print all kinds of exclusions.

Sounds like there is no easy solution just get it looking 80%quickly and get insured.

Also you are paying full boat on the insurance same as if you were driving the car.

lloyd

Peter D · 10-28-04, 11:55 PM

Lloyd, that is weird - I just can't believe nobody in the US offers "Restoration / Laid Up" cover. Here in Oz, we have at least 2 companies who offer this (Vigil & Shannons) & it basically covers fire & theft.

I had my DRB covered by Vigil for $100k & the annual premium was just $330. For an extra $65/day, they were happy to crank the cover up to "full comprehensive" while I took the unregistered car on the road for the RTA tests.

I rang both companies to see if they had US offices or affiliates - unfortunately, no. They were both amazed that it is so hard to find in the US - maybe a business opportunity here ? It might be nice to run the US office of Vigil or Shannons & just sit & watch the money roll in !!

Maybe you need to use the phrase "restoration / laid up cover", as opposed to "car parts" ?

Sorry I can't help further.

Kind Regards,

Peter D.

Howard Jones · 10-29-04, 02:29 PM

Well you are right Lynn I have never really NEEDED insurance and came out of it happy. Farmers has not screwed me yet, of course you will note the "yet". I would ask other hot rod guys, 34 fords and bucket Ts' etc, and see what they are doing.

BenL · 10-31-04, 01:44 PM

Instead of trying to find an insurance company to insure your car, have you tried finding a good insurance agent? I have an extremely helpful insurance agent, and he's be able to help me with odd situations.

Lynn · 10-31-04, 02:15 PM

Howard, that was supposed to be a joke using the word "relations" in the biblical sense :-) - Lynn

LloydGT40 · 10-31-04, 08:11 PM

Ben
Have been working with an agent he has put a tremendous amount of time and still came up short.

Lynn
I stand corrected on my estimate of 25% appears ERA does delivers the car with a lot of parts fitted and on the car.
So I'm a lot closer to the 80% Than i thought. Hang the suspension drop the motor in snap pics and claim the car runs.

Lloyd

Craig White · 10-31-04, 10:02 PM

[ QUOTE ]
Lloyd, that is weird - I just can't believe nobody in the US offers "Restoration / Laid Up" cover. Here in Oz, we have at least 2 companies who offer this (Vigil & Shannons) & it basically covers fire & theft.

[/ QUOTE ]

I think they all classic insurance companies do restoration type cover here in Oz. I've used Torque Underwriting for restoration type insurance during the build of two Cobras. From memory the insurance was quite good value. Then when car is finished and is going to be registered you just pay extra amount to convert to full comprehensive.

Just can't believe it's so difficult in US. [img]/ubbthreads/images/graemlins/confused.gif[/img]

Mark Worthington · 11-01-04, 12:11 PM

Sounds like there is a market niche that needs to be fulfilled. I know a couple mucky mucks at AIG...I'll have a chat with them.

Howard Jones · 11-01-04, 12:13 PM

Lynn my first "relationship" with a insurance company was when I was in collage. I bought a new yamaha 175 duel use street bike, called my dads insurance man the same day from the bike shop, rode the bike back to my appartment, parked outside my room in the stairwell overnight, gone in the morning, called insurance man, sorry son you weren't insured yet. THAT kind of relationship lynn? My ass still hurts from that one it was so fast and unlubed it set some kind of record for slam bam thank you "insured party" from a insurance company. It was allstate and yes they had their hand all the way up my...................... and no it wasn't good!! Biblical in the, from hell, sence all right. I could go on forever, well at least some time about insurance, but I'll spare you all. I'm sure you guys have your own bibilcal storys.