What happens if your car is in the restoration shop and the shop burns down? Who is responsible? Here.
Richard Newton
What happens if your car is in the restoration shop and the shop burns down? Who is responsible? Here.
Richard Newton
I'm not sure who is responsible, but Haggerty has insurance for stored vehicles that I use.
E Sully
1973.5 911T
This is especially important for a restoration facility where your car may be in the shop for several years.
Richard Newton
The shop (If its reputable) should have what's called 'Garagekeeper's legal Liability" This is simply a BLANKET limit of comp/collision (Fire/Theft) coverage for customer's cars held for repair. The question is, "how much did the shop have".? (if any).We have a resto shop with a 5mm blanket limit as an example. That would be your primary course of action in a claim, if that does not work out, your collector policy "should" pick it up. Suggestion, get proof of the shop's coverage PRIOR to any long term repair/storage there. It is advantageous to have the shop take the loss in the event of a claim, rather than your personal coverage, as that could affect your auto rates going forward. Not necessarily a "chargeable claim" but an "incident" which could affect rates depending on your auto carrier. I'm in the business and deal with this frequently
Your article mentions a shop with "$10M worth of coverage and $15M in cars". A couple of important points here:
I know what our paltry $2.5M + umbrella coverage costs and it is one reason our labor rate is what some may consider "high" (Even though we're competitive in our local market.) I can't imagine carrying the load of a $10M premium. Fortunately we only work on a handful of $1M+ cars so we choose to simply add a rider when those cars are here.
The people that whine about the cost of a restoration by a pro shop have NO IDEA what it takes to run a quality outfit.
BTW Richard: The day a customer asks for my certificate of insurance is exactly the moment I tell them it's not a good fit and they can take their business elsewhere.
And that is perfectly fine Frank.
The interesting point is that as I talked to the various insurance companies it became clear that the company that wrote the shop's policy its largely concerned with making the shop whole again. The customer cars inside the shop? No so much. You are not their customer. They will not be your advocate.
If you have insurance on your car your insurance company will make you whole and then go after the shop's insurance company. In this scenario your insurance company will act as your advocate.
The other key point is that as the restoration progresses your car becomes more valuable. That means you need to update the value of your car on a periodic basis.
Richard Newton
I pay comprehensive and collision and have raised the value 4 times for the 3.5 years my car has been at the restorer's. Comprehensive is fine for "storage" but if your car is being moved around the shop and it hits something, that is a collision. Yes, the shop should pay for that damage, but you just never know what coverage they are carrying.
Ravi
Early 911S Registry # 2395
1973 Porsche 911S in ivory white 5sp MT
2015 Porsche Macan S in agate grey 7sp PDK
Very true. I've restored a few cars back in the day and that is a tough row to hoe. I would imagine running a large scale operation would be quite a chore.Originally Posted by Frank Beck
When the time comes, I'll just keep my current policy on it. Better to have too much than not enough.
72 911S Targa #0807 95+% German.
Paul Harrop 12.5% German.
Early S #2059
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