Another dreaded insurance thread

FixedGearFlyer · Oct 31, 2013

I've recently decided to leave an executive, corporate job and open a custom woodshop (Which will feed my heart. I'm also starting a consulting business to feed my bank account.). We have built a dream workshop on the back of our property, which includes 1200 sq ft of open floor space, an ICF foundation, 10 huge windows, 2x6 construction, and . . . a woodstove as the primary heat source.

It's obviously something that we need to insure, but I've been dreading the conversation with the insurance company about the woodstove and was prepared to use electric heat if they denied coverage.

We're in Northern Michigan and I called our Allstate agent yesterday. He classified it as a garage (which it's definitely not), but said that the woodstove isn't a problem at all. Not believing it would be that easy, I asked him to provide that in writing and he sent an updated policy which clearly states the woodstove is approved as a source of heat.

He didn't ask for the inspection papers, photos, or a site visit. There isn't even any extra cost, since we already pay a $25 per year fee for the wood burning furnace in the main house.

That was much easier than I expected it to be! I suppose I should change the name of the thread to "An undreaded insurance thread" . . .

Tenn Dave · Oct 31, 2013

FixedGearFlyer said:
I've recently decided to leave an executive, corporate job and open a custom woodshop (Which will feed my heart. I'm also starting a consulting business to feed my bank account.). We have built a dream workshop on the back of our property, which includes 1200 sq ft of open floor space, an ICF foundation, 10 huge windows, 2x6 construction, and . . . a woodstove as the primary heat source.

It's obviously something that we need to insure, but I've been dreading the conversation with the insurance company about the woodstove and was prepared to use electric heat if they denied coverage.

We're in Northern Michigan and I called our Allstate agent yesterday. He classified it as a garage (which it's definitely not), but said that the woodstove isn't a problem at all. Not believing it would be that easy, I asked him to provide that in writing and he sent an updated policy which clearly states the woodstove is approved as a source of heat.

He didn't ask for the inspection papers, photos, or a site visit. There isn't even any extra cost, since we already pay a $25 per year fee for the wood burning furnace in the main house.

That was much easier than I expected it to be! I suppose I should change the name of the thread to "An undreaded insurance thread" . . .

Yes, a very misleading title. But I'm glad everything turned out good for you.

eclecticcottage · Oct 31, 2013

Wow. In NYS you wouldn't be able to do that, since you can't have a solid fuel appliance in a garage.

Best of luck in your new venture!

FixedGearFlyer · Oct 31, 2013

eclecticcottage said:
Wow. In NYS you wouldn't be able to do that, since you can't have a solid fuel appliance in a garage.

That's what surprised me, too. However, he said since it's not a garage in form, function, or permit paperwork, it's fine. He just didn't have a "workshop" option in his system and "garage" is what they use as a generic classification. Code would never allow a woodstove in a garage, so that's why I wanted the policy statement in writing to make sure there were no misunderstandings.

The inspector was just here for the framing inspection - passed! Time to start electrical and woodstove installation!

ddahlgren · Oct 31, 2013

The agent is not the adjuster. You need the ok on All State letter head not the agents letter head. An agent can represent several companies and does not have a final say in any. Without the company letter head you got an opinion rather than a corporate ruling. If I was All State and woodshop in the same sentence it would raise the hair on the back of my neck as no matter what the inspector sees sawdust and fire are a very bad combination as far as I can see. I would call All State directly and get the real deal ruling on All State letter head.

Manitoulin Maples · Oct 31, 2013

Hey not to burst your bubble or anything...but as someone with experience in the insurance industry (Ontario, Canada), I would check the actual wordings for the policy (or phone the claims department and run scenarios on them!). Don't rely on the policy declaration page, regardless what is printed on it. If it's listed officially with the company as a garage, regardless of what the broker entered, and if you have a claim down the road the company could stand by the fact that to them it was insured as a garage (unless broker made clear notes to company what the building is and its intended use). Also if said woodstove with no inspection report or certification (aka company might be unaware of its existence) was the culprit, then you might have an issue on your hands...or it could be classed as brokerage error, either way means hassles for you. I don't have any ideas of the rules where you live but I do know that it always comes down to what is in the wordings so that's what you need to check. Is this a commercial policy for your business?

My Oslo heats my home · Oct 31, 2013

Interesting, I would have thought a red flag or two would have went up when you called your insurance company on the workshop coverage. My concerns would be the dust produced on the shop and any fumes from chemicals. I have read a few threads on folks that had shops around or near their stoves and the dust (wood particles, sawdust etc) caught fire. and the vapors are self expl.

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