Need some advice

[wilhurley]

Hey Guys, when I was on vacation someone broke into my garage and stole a lot of my power tools, hand tool and knifemaking tools, ect. Now the insurance company is not wanting to pay for the Knifemaking stuff, they say it is a business, not a hobby, but I have only sold 3 knives in a 3 year period. I was completly honest with them, they went to hurelyknives.com and since that I had written that eventually I would post knives for sale they consider it a business. The IRS doesn't consider it a business, the Ohio dept of taxation doesn't either. They are trying to even say that my mig welder was used to make knives. I told them to explain how to make a knife with a mig welder and they could gladly not pay me for it. Also in the insurance policy it says that they consider tools used for business, if you intend to make a profit with those tools. I tried to explain to her that, with the amount of hours, material costs and working full time, plus going to school. How would I have time for a business. Any advice would be appriciated.

 

[Andrew Taylor]

Tell them you reject their offer as insufficient. Insist that they appoint a professional loss adjuster to mediate.

 

[howiesatwork]

Do you write off any part of your home as a business deduction on taxes?
If the business has shown a profit in any three of the past five years, it's a viable business, else it isn't...
You have seperate bank accounts for your business?
There's a bunch of reasons you are a hobbyist at this point in time, as far as insurance is concerned, IMO.
Take Andrew's advice.
Insurance companies are not your friend.
They will offer excuses for not paying you, and soon as you give in and accept their settlement offer, you have no recourse to get anything more from them.

 

[John R. Fraps]

If they write a check that you believe to only be partial payment while the rest is still being negotiated, don't endorse it, it might be construed as your accepting that amount as full settlement.....someone told me that once.

As much as I dislike the litigation prone environment we have to live in, it might be worth a bit of money to hire an attorney as a "NEGOTIATING tOOL".
It is amazing what the insurance company might do to avoid professional antagonism....and potential of paying your attorney's fees if you really do have a good claim and do have to go beyond the attorney communicating with the insurance folks.

Howiesatwork is absolutely right, "They are not your friend".

I got messed over on a legitimate hail damage claim last year that my now ex-agent never called to the adjusters but lied to me repeatedly and said he had....then the adjusters treated me very unfairly....bottom line my new replacement roof cost me 100% and the insurance company covered some minor ceiling damage.... My ex-agent: :thumbdn: My current agent (same company)::thumbup:
GOOD LUCK!