Insuring a workshop: Will my home workshop be covered by household insurance?

  • Household contents insurance covers the costs incurred in many cases of damage, such as theft, fire or flood. A distinction is made here between household contents insurance for private hobbyists and for commercial workshops, as well as the location of your workshop.
  • In order to calculate sufficient coverage for the policy, you should list all tools and machines in the workshop and determine the new purchase value.
  • Find out about additional tariffs for your household contents so that you are covered for any eventuality and are not left with any costs.

household contents insurance workshop

As hobby craftsmen or do-it-yourselfers, many people not only have a small craft room in the house, but also an entire workshop. Classically, this is a direct part of the house through an appropriate extension. But in some cases, a smaller workshop or a converted shed can also be used for hours of crafting, tinkering and building.

But especially if you have purchased one or two expensive devices and the material value of the workshop increases, you want to have these items well insured. Household contents insurance with a correspondingly high coverage amount and the appropriate conditions for payment in the event of damage is therefore essential.

We at heimwerker.de will tell you what you need to pay attention to when it comes to household contents insurance if you also want to have your hobby insured.

1. What does household contents typically cover?

Household contents insurance insures your property. The following picture is often painted: If you take your house or your mechanic’s workshop, lift it up and turn it upside down, then anything that falls out will be covered by your household contents insurance.

So for a private workshop would be

  • Tools
  • Recyclables and building materials
  • machinery

covered. Household contents insurance from Allianz Direct for example, applies in the following cases:

Damage event Explanation
fire
  • Caution is advised here, especially in the workshop
  • Flammable substances, such as gasoline etc., which can certainly be found in a home workshop, should only be found in normal household quantities
  • Otherwise as well as at incorrect/negligent storage Household contents insurance can also refuse to compensate for the damage in the event of damage
Lightning, storm/hail
  • Unforeseen damage caused by weather is usually easily insured and compensated in the event of damage
tap water
  • Other types of water, such as floods, can be insured with additional modules from some insurers
  • It’s worth it, especially if you’re in one Flood area live or their workshop would be particularly at risk in the event of heavy rain due to a valley location or similar.
Burglary
  • In order for the household contents to be effective in the event of burglary, the criterion of burglary must be present
  • If your workshop is not secured at all or is only inadequately secured (with an old padlock), disputes can arise in the event of damage

Get detailed advice from the insurance company You are also welcome to inquire about specific situations and measures, which must be taken in advance to ensure coverage in the event of damage.

2. Under what conditions can I insure my workshop commercially or privately?

When taking out household contents with the aim of also insuring the workshop, a distinction should be made between three cases:

  1. Is your workshop connected directly to your homefor example through an extension or as part of the garage where your car is located the interior is automatically insured.
  2. However, if your hobby workshop is located outside the property, you should contact your insurance broker a corresponding extension of the insurance to the other property ask. If necessary, a second household contract must also be completed.
  3. For companies and self-employed people: If you want to insure your car workshop and use it partly or entirely for commercial purposes, private household contents insurance is insufficient. In this case, we advise you to take out contents insurance from the commercial sector.

home insurance tools on the wall

Note for traders: Damage caused by employees or third parties should be insured through business liability insurance.

3. What coverage should be the minimum for expensive machines?

We at heimwerker.de recommend you to make an accurate list of your inventory in your home and workshop, when it comes to deciding on the appropriate coverage amount. The value of items purchased used should also be considered always based on the new value. The same applies to building materials such as wood and the like.

A coverage amount of 30,000 or 50,000 euros may seem like a lot at first, but considering all of your possessions, this amount can quickly be exceeded. Allianz recommends, for example, when calculating the required coverage amount for an average equipped household with around €650 per square meter to calculate an estimate for a suitable policy.

If you have machines such as expensive table saws, compressors, drills, etc., this value per square meter should be set accordingly higher.

4. How can you additionally secure the workshop?

Most household contents insurance companies advertise different tariffs, which can have many advantages depending on your individual situation. Various additional modules are usually integrated into these tariffs:

  • Replacement value compensation: If your workshop is robbed, older tools and machines that you have grown fond of and are often lost. The new value compensation ensures that the damage is compensated in such a way that you can buy the same or an equivalent product at the new value, even if the use of your stolen product undercuts this amount.
  • Waiver of checking for gross negligence: Often found in premium tariffs is the clause waiving the check for gross negligence. This can occur, for example, if an unattended candle caused a fire. If checked for gross negligence, this behavior can lead to a reduction in benefits in the event of damage. If the insurance company waives this, the amount paid out may be larger.
  • Waiver of underinsurance: Many people insure their belongings with a coverage amount that is too low. In the event of a claim, the household can also reduce the benefits if you are underinsured. However, if there is a clause that waives this check, you do not have to fear any reduction. You may be paid the maximum coverage amount.

Also outside the apartment The household contents can be insured with the corresponding tariff. The criterion that must often be adhered to is that it is one temporary state acts. He can do that too Theft from the car be covered by household insurance.

Report damage: If damage occurs and a replacement or repair is pending, you should report the damage to the insurance company as quickly as possible and document it with photos and/or videos.

Image credits: StockAdobe/Syda Productions, StockAdobe/vectorfusionart (sorted chronologically or according to the order of the images used in the buying guide)