Work Tools or Personal Property?

March 15, 2010

We insure a plumber who was working at a job site for a plumbing contractor when his personal vehicle was broken into and various tools stolen. Many of the tools were specific to plumbing while others were generic tools. He's claiming that they were his personal tools and should be covered under his HO policy. He has been deducting "hand tools" on his tax returns for many years. The employer did not provide these tools to our insured. Should these be covered under his HO policy?

Kentucky Subscriber

The insured can't have it both ways; if he's been taking deductions for tools used in plumbing, then they're work tools. They can't suddenly revert to personal property once there has been a loss. The HO 00 03 10 00 allows for $500 for property used in business. If he wants to file a claim for personal property, he's going to have to redo all his past taxes and refund the IRS.