Home Owners Insurance Cancellation

Danny Moore danmoore@ih2000.net
Sun, 02 Nov 1997 11:29:33 -0600


Warren Fisher wrote:

> A Word to the Wise, guys.  Keep your home operations secret!
> That little mistake is costing me $300 a month just for shop space!

Warren, list,

Once again my empathy goes out to you.  This is even a more difficult
situation the the broken plate because, as James pointed out, it will take
several years to sort it out, if ever!  (Oh yeah, just any case anyone
wondered why I took a 75% pay cut to become a piano tech, multiply this
problem by the 1500 clients I served.)

1.  Find an agent you like, trust and serves your needs rather than the
insurance company.  Agents get paid commission, so YOU pay his wages, not
the company.

2.  Please DO NOT hide the fact that you do piano work in your home!  ***If
your Agent/Company is not told of the home based business and you have a
claim, they have the legal grounds to deny the claim.  They consider this
misrepresentation, and in todays insurance climate, they will strictly
interpret the policy.***
NOTE:  Personal insurance policies allow for a home based business.  In
Texas, an insured is allowed up to 500 sq.ft. for business use in the home.
Any liability associated with the business is specifically excluded.

3.  Do find out what the business limitations are in your state and discuss
this with your agent before you buy the policy.  I can only speak for
Texas.  (We were licensed for Claims in Louisiana, not sales.)

Basically, consider the additional $300 a blessing.  Most non-standard
policies that would provide the coverage you need would be much more costly
than that.  I would also consider this a buying you 12 months of shopping
time.  Start with your existing agent, find out the LA statutes concerning
home based business, and do what it takes to fit them.  For example, my shop
is a 14 x 20 room attached to my 2-car garage.That 280 sq.ft. is well within
the allowed 500 s/f.  However, it has double doors opening into my garage.
When the insurance inspectors arrive, piano stuff is in the shop, cars are
in the garage.  Otherwise, I back the cars out and spill over into the
garage for pulling plate, re-stringing, re-finishing, etc.

Good luck.

Danny Moore
Houston Chapter



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