Train Insurance

[Donhost4449]

Chris:

Did you get a quote on liability insurance?

No, I didn't ask. From my research, I have concluded that the club's insurance should be sufficient to cover me in the event of an accident. I only pull public at my home club. As an extra layer of protection, I also have a 1 Million dollar personal liability umbrella that I purchased through State Farm. That covers me for anything I am not paid to do, including giving train rides at the club. The umbrella kicks in when the first line of insurance (the club insurance) exceeds the limits of the policy. I don't recall right now, but I believe the umbrella costs me $215/year. Of course that also protects me if someone is injured at my home, or an auto accident I am involved in.

Chris

[6491]

I would like to think that you could trust insurance companies but after seeing what lengths they will go too after floods and bush fires to get out of paying I have my doubts.
The main thing to remember with insurance claims is that you are guilty until you prove otherwise.

[piedmontg]

Chris

You better check again with your insurance company. It is the same as mine and they informed me a number of years ago in writing that none of my locomotives were covered even sitting in my home. They were now considered self moving vehicles and therefore were not covered anywhere in the homeowners, ie they were equated to automobiles. They had previously covered them in writing.

Again do not deal with the agent, force the agent to get a ruling in writing from the underwriter, provide pictures and descriptions so there is no mistake.

Bob

[Greg_Lewis]

Chris, Bob is right. After the LALS incident I got a letter from State Farm specifically excluding "ride-on trains" from coverage. A visit to my agent and his call to an underwriter confirmed that this exclusion was specifically aimed at our hobby.

[aopagary]

After my State Farm agent had been telling me for years that my trains were covered under my homeowners policy, I recently learned that was in error. They were covered at my residence, but once I drove away from home to the club, I was one my own. ...

many years ago i had my bicycle stolen out of my car. the smashed window was covered under my auto policy, and the bicycle was covered under my homeowners. i remember the wording of the policy indicated that personal possessions would be covered away from my residence as long as the items were reasonably secured.

[Donhost4449]

Chris

You better check again with your insurance company.

Bob

It doesn't matter what my homeowner's policy will or won't cover, as the policy I purchased from HMBD covers my trains anywhere, anytime. What the underwriter from State Farm said is that the trains are covered by my homeowners policy when they are home. However, what State Farm actually covers of my live steam trains no longer concerns me. Now the G scale, HO, Lionel, and N gauge, they are a different matter!

Chris

[ccvstmr]

Don't take this personally guys...but when talking "insurance"....would think you need to be SPECIFIC...not Specifically Vague. Most of the insurance matters that come up for discussion here are either: 1) liability or 2) property protection. Seldom is it stated what kind of protection you're talking about. Public hauling organizations usually have an umbrella policy for the liability but not property protection. Some hobbyists carry their own protection (liability and/or property) in addition to what a club or municipality might cover. Most importantly, if you have coverage for either...you need to get coverage details in writing from the underwriter...not the agent. Just my $ 0.02. Carl B.

[Donhost4449]

I appreciate all the questions, and the discussion. It has forced me to dig a little deeper, and re-read the coverage I purchased. I learned that this same policy is owned by several well-known live steam clubs throughout the US. It is also owned by several tourist railroads, and larger gauged commercial railroad operations. It is not my place to disclose their names, but many of you would recognize these operations. I also learned that there are certain policy extensions that provide coverage beyond my stated values in certain circumstances. Very cool. Thanks for all the feedback!

Chris

[keyrouteken]

Chris-- Glad I was able to direct you to an honest insurer that could give you what you needed.
Some of these bird dogs that appear on hear, especially the "Easteners", seem to have all these problems. I had State Farm insurance on my home in Union City, CA for twenty-three years.
Not once did the agent call to say Merry Christmas or offer me a calendar. Not too customer focused, huh ?
In the PNW, I now have Allstate. No problem.. Now then, miniature steam locomotives have always been tough for insuring or for pleasing the IRS if you decide to donate one to a 503c organization because you want to. I have even spoken with reps of Butterfield & Butterfield auctioneers in San Francisco... And, it is hard to place a value on YOUR creation... Why ?? In most cases, you didn't BUY it-- you BUILT it, maybe from scratch (if any of you do it that way anymore)... So there is no honest way to determine the cost of your Labor in designing it and building it !!

Take care.

Ken Shattock
IBLS
www.ibls.org

[Donhost4449]

Chris-- Glad I was able to direct you to an honest insurer that could give you what you needed.

Ken Shattock
IBLS
http://www.ibls.org

Ken,

I have been doing business with them for sometime, they were recommended to me by a friend in the hobby several years ago. However, when I saw you mention HMBD, I thought I should chime in. After all, I have had nothing but good service from them. I event got a Christmas card!

Chris

[SteveM]

In most cases, you didn't BUY it-- you BUILT it, maybe from scratch (if any of you do it that way anymore)... So there is no honest way to determine the cost of your Labor in designing it and building it !!

There was a fellow selling a gorgeous locomotive maybe 10 years ago because it had taken him so long to complete it that he was too old to work on it. It was something more than 95% completed.

He said that at $100,000, he wasn't even making minimum wage.

Steve

[Greg_Lewis]

In most cases, you didn't BUY it-- you BUILT it, maybe from scratch (if any of you do it that way anymore)... So there is no honest way to determine the cost of your Labor in designing it and building it !!

There was a fellow selling a gorgeous locomotive maybe 10 years ago because it had taken him so long to complete it that he was too old to work on it. It was something more than 95% completed.

He said that at $100,000, he wasn't even making minimum wage.

Steve

Reminds me of when my wife went to sell something to an antique shop. The dealer offered her $65. She said she thought it was worth a lot more. He said, "Lady, it's only worth what someone is willing to pay for it."