Quilting and Insurance

History:

You’ve heard of Lloyd’s of London? Well, you can blame all of the archaic language in your insurance documents on them. They became a company in1688 to write coverage for sailing ships that were globe-trotting at that time. They were based in a coffee house in – you guessed it – London.

In the centuries since, the language of insurance hasn’t changed much, because all the companies that came later just copied what Lloyd’s had written.

In the 1980’s State Farm, the company I worked for, revised the policy to be easier to read. They claimed that it was written at a sixth grade level. Well, unless that sixth grader was Sheldon Cooper, they were wrong. I have a degree that says that I am an expert in policy interpretation, and a lot of it is still Greek to me. So, don’t worry if you don’t understand it all. If you want to have some fun with your insurance agent, ask him/her to interpret some of the weirder stuff in the policy, then watch them squirm.

In Case of a Loss:

(See below) – If you keep the purchase documents on your machines, that will help you remember details and values. Be precise with your listing, and provide the insurance company with copies of these documents. The material – stash – is another matter. Keeping an inventory of the material you have on hand would be a whole different hobby. As I noted on the handout, take a video of your material and supplies on a regular basis – it should only take a few minutes. But, it could save you hours of discussions in case of a loss.

If you have a water or storm loss – do what you can to protect the property and/or remove it from the area of damage. Insurance companies like that.

If you have an active fire or smoke loss: get out of the building immediately. Do not go back in until it is safe. Fire losses, and the accompanying water damage is the most damaging loss to your quilting machines and materials. It is also why the lists, videos and documentation are essential.

Quilting and Insurance

Here is a list of things your personal property is covered for (called “perils” in your policy):

Fire and Smoke,

Lightning Strikes, Windstorm and Hail

Explosion

Vandalism / Malicious Mischief

Damage from an Aircraft, Car or Vehicle

Theft

Falling Objects

Weight of Ice, Snow or Sleet

Water Damage

How much is my property covered for (limits)?

Homeowners Policy – 50% to 70% of Building Coverage

Condo Policy – amount you choose

Apartment/Renters Policy – amount you choose

Where is my property covered?

All Policies: fully covered at premises noted on policy; 

may be limited coverage off premises 

If I have a loss, how much will be covered by insurance:

Claims are initially paid on an ACV (Actual Cash Value) basis, based on the age and condition of the item; if you have a Replacement Cost policy,

the full amount is generally not paid until the item is replaced.  Insurance companies have charts that tell them how much to depreciate on

a percentage basis per year of age for almost all items that exist. Here is the important part:

Every time you buy a new, or new to you, machine, scan the receipt and store it off-premises (Cloud, Dropbox, etc)

On a regular basis – maybe once a quarter – using your phone take a slow video around your sewing room/studio and save it off-premises. Don’t forget the material you have stored under the stairs or in another room or closet. In case of a claim, this will help verify your loss.

Remember, your insurance adjustor is likely to be someone who knows nothing about quilting and has no idea of the values involved; you will have to prove everything.

Quilters Last Will and Testament from Barbara Black's blog, May 2021

click here for some great information