Your Engines and Your Insurance!

| October/November 1993

409 Mills Lane New Albany, Indiana 47150

I guess it's my birthright to be very inquisitive and thorough. When I get hold of an issue, I ask specific questions and like to get detailed answers. I was recently speaking with my insurance agent regarding my auto policies, and mentioned that I was curious about the valuation of my engines. Boy, I really got into a can of worms! I'm glad it happened because I had made an assumption which could have been catastrophic! I arranged for an interview with the agent, and want to share with you the results of my 'what if session.

I've tried to use a logical sequence, but this will still skip around some. QUALIFIER: My insurance is with one of the larger, nationwide companies. I've used the same agent for eighteen years and am completely satisfied with all my dealings. My comments pertain to what is generally accepted industry practice among insurance companies. There are surely exceptions to some of these issues!

Homeowners Policy: How would my engines be valued if they were damaged by a fire or stolen from my garage? 'The engine would be covered under your auto insurance for that vehicle.' This was the first stumbling block; it took some explaining to get on common ground about exactly what these engines are! The result: They're not covered on the homeowners policy. 'Well, how do I get them insured?' My agent is still researching this.

Trailers: Some trailers (depending upon size, use, gross weight and state laws) are covered for liability automatically on the pulling vehicle's policy. However, the value of the trailer and its contents are not covered! This type of coverage will only protect against damage done by or caused by your trailer or its contents.

To insure the value of the trailer, not the contents, you can take out a commercial policy; to get this type of policy you must also have commercial use coverage on the pulling vehicle. Of course commercial rates are substantially higher than for personal use!