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home owners insurance (long)

updated sun 29 sep 02


Maid O'Mud on sat 28 sep 02

Hi Debby:

Before reading the rest, know that we live in CANADA and I'm only referring
to Canadian insurance.

My husband works for a large insurance company and though we are covered
through them for our vehicles, they will not touch small business insurance
(even for employees!!).

From an insurance point of view, anything you have not declared that is not
a common household item that could potentially cause damage (read money from
them) is an "out" for the company. This also covers woodstoves, fireplaces,
waterbeds etc. If these types of items are not disclosed, the insurance
company _could_ decline to provide coverage in case of the "god forbids".
According to hubby, the term is "misrepresentation" and can allow your
company not to pay out. It's a good idea to have your agent over to
physically view your home. I did.

you ask
> Our present insurance company doesn't know about the kiln ( cause they
> asked) so are we really insured for it's use presently?

He answers:
Absolutely not.

As well, computers, unless they have a rider, are only insured to $1000 IN
CANADA. Bet you guys didn't know that.

If you are doing shows, also be aware that many shows require you to provide
proof of insurance (min. 1 million liability). Another interesting tidbit
is that fact that you need a rider to cover (potential) damage during
transport. A small business policy can cover you at home AND at the show,
but NOT during transit. This is a fact. You need to get is spelled out in
your policy. I personally know a potter whose van went off the road in a
snowstorm while she was en route to a show. 5-6k in ruined pots; and zero
coverage because she had not purchased the rider. She told me, and I called
my broker. She said "of course you're covered in transit". I told her to
call and check and sure enough (surprise to her!!) I needed separate

Don't screw around with insurance companies. They have lots of lawyers, and
hate paying out if they can get out of it. We know this from a rough
experience with a house fire many years ago. It tooks months of fighting
and a whole lot of head butting before we received full compensation.

Sam - Maid O'Mud Pottery
Melbourne, Ontario CANADA

"First, the clay told me what to do.
Then, I told the clay what to do.
Now, we co-operate."
sam 1994
----- Original Message -----
From: "claystuff"
Sent: Saturday, September 28, 2002 3:52 PM
Subject: home owners insurance

> Home vs business insurance?
> I am wondering what other potters do regarding home/ business insurance
> they work out of their home studios ( basement, garage), occasionally
> at a craft show and collect sales tax, and view pottery as a hobby
> but are a declared small business. We recently tried to switch to a new
> home owner's policy but were rejected due to the kiln in the basement and
> the fact that I am considered a small business. So...
> How much is insurance for a small pottery business? Any suggestions as to
> companies?
> Our present insurance company doesn't know about the kiln ( cause they
> asked) so are we really insured for it's use presently?
> Should the fact that there is a kiln in the basement be declared up
> Any suggestions, advice would be much appreciated!
> Debby in NJ