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We had a fire and could use your help.
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Author:  peters instruments [ Sat Feb 21, 2015 9:44 pm ]
Post subject:  We had a fire and could use your help.
Hey guys, so first off I should mention that I ran this by Lance and he said it would be ok to post it here. Some of you know me already, for those who don’t my name is Shad Peters, I started building guitars in high school, I’m now 25 and have been building for the last 10 years. On Dec 31st 2014 my shop caught fire and was completely leveled to the ground. It was a total loss, my wife and daughter and I live in a little farm house out in the country, so by the time the fire dept got here there was nothing left to save, it was just a pile of rubble. Every board, tool, piece of equipment, template, jig, work in progress, and finished guitar that I had out there was lost.
I worked out of our outbuilding, when we bought the house and got insurance for it I saw that the building was covered for 15000, and contents for 109000. That seemed totally adequate to me. We didn't know that because I was building guitar out there it voided our homeowners insurance. Weather it was naivety or foolishness, we thought we were covered, and no one ever told us otherwise. We never expected anything like this to happen, but we thought we’d be ok if it did. We were wrong, the insurance company isn't covering anything guitar related including the building. The only things they are covering are personal possession that were out there in storage. I have since found out that a simple rider on our policy would have had us completely covered. I would have happily paid the extra to have been covered for this had I known but it is what it is now.
I have put everything into my shop, in high school while other kids were saving up for cars I was saving up for tools, while others in college were out partying I was laboring over guitar bodies. It has been my life’s work to this point and in less than an hour it was all gone. We lost so much more than a just a shop, my wife and I lost our dream, our plans for the future, and a good chunk of income. Ten years of literal blood, sweat, and tears- It has left things a bit uncertain for us for the moment.
So here is where all this comes to a head, we need help. You have no idea how much it pains me to ask for it. I have busted my butt my whole life to make it on my own and not be a burden to others. Principally I am not one to ask for assistance, financial or otherwise, but the truth of the matter is that without help we won’t recover from this for a long time. We live a simple life, we’ve never made much money, and that’s fine for us, we are content. Unfortunately it doesn't leave us in a very position to absorb this type of loss.
I love what I do, I’m passionate about building guitars, and I really feel like my best years as a luthier are in front of me. I’d hate to have this set back delay me to many years from getting there. Some friends of ours started up a GoFundMe page ( http://www.gofundme.com/ju5f28 ) to help us raise funds. It has already generated over 25000 dollars which is amazing, but the sad truth is that that is really just a start. We can put a building back, and replace some tools, but it won’t cover a full rebuild, or the many months without income that it will take for us to get back up and running again. If you could help us in any way, weather it’s financially, directing us to other resources, or sharing the link on Facebook, we’d be incredibly thankful for anything. Thanks for taking the time to read this, it’s much appreciated.
http://www.gofundme.com/ju5f28
Author:  Josh H [ Sat Feb 21, 2015 9:53 pm ]
Post subject:  Re: We had a fire and could use your help.
Hi Shad,

I saw a post about your fire on Facebook, shared by a friend here Tim McKnight. I can sympathize with you a little having been through a devastating tornado a few years back. While my looses were not what yours are I do know some of what you are going through. I will be sharing your story through my Facebook pages and will send it out as well in my newsletter. Thoughts and prayers are with you guys as you work to recover. Your work is beautiful and someday I'd like to come visit at your new shop, which I trust will get built.

Josh
Author:  Mike OMelia [ Sun Feb 22, 2015 12:08 am ]
Post subject:  Re: We had a fire and could use your help.
What about building guitars (as opposed to furniture) makes a difference? Or was it simply because you were doing anything at all besides mowing grass and watching football on the weekends? This stuff ticks me off. You work your ass off using all that you have, and insurance companies do this kind of stuff. I purposely avoid explosive finishes for this reason. But, I'm going to ask my insurance guy for peace of mind. My garage us my shop. So my house is the risk.
Author:  Hesh [ Sun Feb 22, 2015 7:05 am ]
Post subject:  Re: We had a fire and could use your help.
Me thinks that Shad could use a hand, not advise, not 50 questions about how unfair insurance companies can be, etc. So that's what I did, went to the funding site and made a contribution.

Here's to hoping that you and yours, Shad get back to being whole again as soon as possible. VERY glad to hear that no one was hurt either!
Author:  LanceK [ Sun Feb 22, 2015 9:02 am ]
Post subject:  Re: We had a fire and could use your help.
I actually think Shads experience can help others . Like Mike I build out of my home. I will be calling my insurance guy this week to inquire about my coverage. Please do send a few bucks to Shad if you can spare but I think this could be a very important and productive conversation.
Author:  bluescreek [ Sun Feb 22, 2015 9:24 am ]
Post subject:  Re: We had a fire and could use your help.
this is one of the points about being in business. Once you are doing a commercial venture your home owners is not going to cover. I sympathize with your plight but for everyone to learn from this experience. Contact your insurance company and get covered.
I wish you the best. If one person learns from this you have helped them.
Author:  Hesh [ Sun Feb 22, 2015 9:41 am ]
Post subject:  Re: We had a fire and could use your help.
Lance I can't remember for sure but wasn't Heritage and Ellis/Joan a sponsor of the OLF in the past?

Our insurance is with Heritage and we have two policies in fact. One covers the building and any and all associated liability including personal injury of say a client on a stairway, etc. The other policy covers our business and our stuff as well as a hefty rider for the personal property of others that we have in legal terms a bailment for. With the pre-war stuff that we regularly see it's also important to have an appropriate level of coverage too certainly when one instrument can cost $50K to not replace... but compensate the owner for.

The thing to know when viewing homeowners insurance is if there is even the slightest element of "commercial" intent in how we use our homes and this was not specifically provided for and stated as such in the policy the insurance company will not have to pay.... These days as well there are certain things that if you do them at your home and it results in damage the insurance company can get out of paying as well.... Finishing with toxic substances or explosives is a good example.

I went with expanded home owners when I was working out of my home and there was a commercial element but I never really trusted what I was told or even what the policy said. When we started Ann Arbor Guitars I went straight to Heritage after hearing first hand from other Luthiers about the praises for Heritage and that was good enough for me. Since then I have gotten to know the very fine folks at Heritage a bit too and currently have confidence that I am covered by a quality company who has lots of experience knowing what we do and what we need.

For example, tell Heritage that you do Martin authorized warranty work and they know exactly the levels of coverage that Martin requires for their authorized warranty centers, easy peezy.

Although we have levels of coverage that we sign up for and pay for Lutherie is a very different beast when it comes time to insure oneself. A great example of this is our penchant to build jigs. What may look like a sheet of plywood and some clamps to one insurance company is actually known to be a working tool to companies such as Heritage.

Last month I had a conversation with Heritage about the idea that much of what we use and depend on is shop-made, had been bought at an auction and no receipt exists, would cost X to replace but we can't prove that we paid a dime for it, or is IP (intellectual property) and perhaps one of a kind and receipts don't exist but we would be out of business without the use of the thing. None of this was an issue for Heritage nor was compensating us for work loss (continued salary payments) or the costs associated with starting up again somewhere else which can also be covered by Heritage.

My understanding is that Heritage is underwriting for the Travelers so there is a rock solid company behind them with the added benefit of Heritage having crafted these policies specifically for our weird Luthery world.

I don't want to quote prices because I can't know but I will tell you that what we pay is mouse nuts for the piece of mind that we have knowing that if something happens we have our clients completely covered, the business completely covered including upstart costs in the future if need be, the building is completely covered as well and we have liability coverage too if a client breaks an ankle on our two stairways.

Did you know that if a Luthier accidentally knocks a client instrument on the floor that insurance will cover this? I did not think this would be possible but we have coverage for this through Heritage and it's part of their standard offering with coverage I believe to $10K for this kind of a thing.

Anyway the real point here is if one is flirting with anything commercial from a home shop danger Will Robinson this is where many insurance policies will leave you high and dry.... What's commercial? Accept a dime from anyone for an instrument or a repair and you are commercial in the eyes of insurance companies.
Author:  LanceK [ Sun Feb 22, 2015 9:44 am ]
Post subject:  Re: We had a fire and could use your help.
Hesh yes Joan and Heritage sponsored the OLF for a couple of years..
Super nice people.
Author:  Michael.N. [ Sun Feb 22, 2015 9:50 am ]
Post subject:  Re: We had a fire and could use your help.
Commercial ventures require commercial insurance. Doesn't really matter if you sell Guitars for $10 each or $10,000, it's still a commercial venture. It took me many calls before I found an insurance company that would cover both the workshop (commercial) and the house (non commercial). Of course the premiums are a lot more.
Make sure you are covered, even if it's just purely hobby only and you never sell a thing. It's only a quick phone call.
Author:  jfmckenna [ Sun Feb 22, 2015 10:43 am ]
Post subject:  Re: We had a fire and could use your help.
That's terrible and I'm very sorry for your troubles. Geesh a luthiers shop in Winston Salem NC last weak burned to the ground. What the heck is going on :(

I'll do what I can to spread the word and try and help you out a bit myself. A lot of your story resembles mine right now. My wife and I have a new 'old' house with two out buildings one her pottery studio the other my guitar shop. And I know what it's like to poor so much time and money into getting it set up.

I think sadly we all indeed can learn something from the misfortune of others. Insurance is a brutal business. Their vested interest is in NOT paying out.
Author:  WaddyThomson [ Sun Feb 22, 2015 12:13 pm ]
Post subject:  Re: We had a fire and could use your help.
Exactly, I talked to my insurance agent, and was told I'd have to get commercial insurance for the portion of the house that I use for making guitars. I even had to fight "City Hall" really the county, to get a license to build and sell instruments. In our county, not allowed to have a separate building and make anything and sell it. Has to be part of the house, and has too have heat and air installed. Or, it has to be in a commercial facility zoned for manufacturing. They let me use a loophole in the law that allows crafters to use a portion of their house for crafts. I'm listed as "Woodcraft for guitars". I bought insurance from Heritage for both my shop and my office(in a commercial building). Costs me about $1,000 per year for both, with some limits to coverage, but it also covers shipments and instruments on trial.
Author:  WudWerkr [ Sun Feb 22, 2015 1:20 pm ]
Post subject:  Re: We had a fire and could use your help.
I purchased Insurance Rider to the Tune of 30K a couple months back that covers any guitars and or wood etc: in my shop . I already have coverage on Building and tools etc: but did not have coverage on the specifics like my wood or a customers Guitar . Cost me $300.00 a yr for the rider .

I will help with donation as well , It could happen to anyone of us .
Author:  dnf777 [ Sun Feb 22, 2015 7:08 pm ]
Post subject:  Re: We had a fire and could use your help.
Shad, first of all, I'm so sorry about your losses.

Second--GET A LAWYER!

What little you spend for a consultation may pay off HUGE if he can win you coverage based on your existing policy. Don't believe an insurance company agent if they tell you Mickey Mouse has ears! They do not have your interests, legal or otherwise at heart.

My insurance company tried to nail me with 17k in "deductions" and "exclusions" for a situation I had last year. After a $200 legal bill, and a letter from my lawyer, that 17k disappeared. The lawyer said it was a piece of cake win. Soon as they saw a legal letterhead, they caved and paid up.

Good luck,
Dave
Author:  Mike OMelia [ Sun Feb 22, 2015 10:45 pm ]
Post subject:  Re: We had a fire and could use your help.
Deleted.
Author:  Mike OMelia [ Sun Feb 22, 2015 10:48 pm ]
Post subject:  Re: We had a fire and could use your help.
To the OP. I want to thank u for posting this. I had no idea. And, we are currently talking with our insurance company to make sure we are covered. And, as a person who has benefitted endlessly from this forum, I intend to do my part to pay it forward.

Thank you and good luck.

Mike
Author:  peters instruments [ Mon Feb 23, 2015 9:02 pm ]
Post subject:  Re: We had a fire and could use your help.
Glad that some others are able to benefit from this situation. please for your own sake talk to your insurance agent and make sure you are covered. Just think of what luthiery involves, if you are like the average craftsmen your shop is essentially a giant tender box with with plenty of volatile chemicals thrown in for good measure.

dnf777 wrote:
Shad, first of all, I'm so sorry about your losses.

Second--GET A LAWYER!

What little you spend for a consultation may pay off HUGE if he can win you coverage based on your existing policy. Don't believe an insurance company agent if they tell you Mickey Mouse has ears! They do not have your interests, legal or otherwise at heart.

My insurance company tried to nail me with 17k in "deductions" and "exclusions" for a situation I had last year. After a $200 legal bill, and a letter from my lawyer, that 17k disappeared. The lawyer said it was a piece of cake win. Soon as they saw a legal letterhead, they caved and paid up.

Good luck,
Dave


A friend of mine put me in contact with a lawyer he is connected to (father of his brother in law) and he is looking things over for us. I honestly feel very doubtful that anything will come of it, but then I just feel beaten down by this situation in general so its hard to look at anything objectivly. I'm just not wanting to get my hopes up that it will change anything.
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