Who Pays if the Shop Burns Down?

[RichardNew]

What happens if your car is the shop and the shop burns to the ground? Who pays? Here.



Richard Newton

[timchar]

Interesting, Something to research as my car sits in a shop for paint. Tim

[RichardNew]

Good idea.

Richard Newton

[turbo owner]

Keep your car fully insured no matter what, your insurance will pay and then go after the the shop and/or their insurers in court if necessary.

[porschenut]

The shop's insurance pays. It covers the shop and any customer cars that are in their custody.

[dad911]

Originally Posted by porschenut

The shop's insurance pays. It covers the shop and any customer cars that are in their custody.

I wouldn't count on that.

[universeman]

Most original RSR remaining in the world was lost in a Sacramento shop fire last year...so sad

Sacramento Shop Burns, Destroying World's Most Original 911 RSR - @FlatSixes - the blog about Porsche

[David Liam]

I saw these in a shop recently. I didn't know they existed, so it might be news to everyone here too. Ceiling mounted fire extinguishers.

I haven't bought them yet, but here is what I have found so far.

http://www.amazon.com/Sun-System-Flame-Defender-2kg/dp/B0030KM0V4/ref=sr_1_1?ie=UTF8&qid=1455553364&sr=8-1&keywords=ceiling+extinguisher

https://www.youtube.com/watch?v=rrgoIn9BV3A

[RichardNew]

You are not the customer of the shop's insurance company. They won't act as your advocate in the case of a loss.

Richard Newton
The Original Article is Here

[ClickClickBoom]

Was working in a hot rod fab shop in the '90s, for a well known hot rod metal guy. He was commissioned to replicate a front bumper for a Ferrari 250 GT California Spyder, that had been lost during a rechroming disaster. The car was delivered to the shop daily, on a flatbed, with an armed security guard, for fitting, and promptly taken away as soon as the fitting was completed. The license plate was removed and all serial numbers were covered with masking tape. While the car was in the shop all the guys were instructed to "take a break" and not move any stock or materials in the shop.
The shop which usually had the roll up door open for ventilation, was down, and all doors were locked while the car was there.
Oddly enough I wasn't very impressed with the car, it almost seemed pedestrian , given the hoopla.

[john walker's workshop]

Shop insurance covers what the owner sets the premium at. If he only wants to pay for a premium that covers $100K, and $200K worth of cars are lost........

[juanbenae]

a friend of mine lost two car in the sac fire linked above. he lost a PRC GTL classed car & an early 70's 911S. his insurance covered both cars, but the racecar was way under valued in the payout, the early S was paid for handsomely. in all he received around $200k for both cars. I have not spoken with him since late last summer, but will ask him when I see him next month is his insurer went after the shop with claims.

sad none the less.

[Dr DIY]

Don't count on the shop paying. Have your own coverage and allow the insurance to go after the shop if needed.

[Geneman]

What if an expensive race gearbox is lost in a shop fire? This just happened to me when brian copans shop in ohio burned to the ground last sunday. This is common knowledge now, none injured , but apparently considerable property loss.

[RichardNew]

That's a really good question. I never really thought about parts being in a shop. Let us know how this works out.

Richard Newton

[mussberger]

I am in the light construction equipment business and I have coverage for my customers equipment on my property.

Local Independent Porsche shop I have used considerably (Bodymotion) doesn't.

[mrm930]

If you have a business in the service industry, such as car repair, paint and body, etc. By law you have to have contents of customers cars in your insurance package. There are dollar values set when the policies are set-up. If you go over this amount, meaning a few cars are really expensive, it is the business owners responsibility to get a "ridder" to increase that coverage amount. Usually the minimum is $1 million, but that can get over run fast with the increasing car values - so a $5 million policy would be a minimum here.

This covers customers autos only - the business has separate coverage for their own equipment.

In case of a fire - I believe your insurance carrier will cover you and they will go after the shop owner on their end.

As me how I know. I don't want to talk about it - LOL

[82 SC]

On another note i had a guy working on a motor for me and he did not pay his bills. Ended up seeing my stuff on ebay from the owner of the building. The building owner said he was way behind on his rent and I needed to get with guy guy about my stuff. Ended up the guy was on Jail for some other thing. Ended up loosing about 2k in motor stuff. All VW in this case.
Not sure how insurance would cover that if it was insured.
Now back to regular broadcast.

[dwiniger]

One thing that is for sure. The value of the vehicle will be much harder to assess after a good cremation. Proving the value of your vehicle to Your insurance agent, as well as the shops insurance agent, is a must. Therefore one should have a current appraisal value from a reputable source. With the value of these early Porsches changing so much, it should be updated regularly. This will avoid having to argue with what the shop states the value at, and what your insurance company sets the value at.

[aoncurly]

Not sure about other insurance companies, but mine agrees (Leland - West) on a value of the car with me. I have a 1981 911SC and it is valued at an agreed value of $32,500. If I want a higher value, I pay a higher insurance rate. A few years ago, I recall it was valued at $22,000.