A few weeks ago in Staunton, Illinois, a warehouse filled with over 150 classic cars was engulfed in flames. It took the work of firefighters from 13 different fire departments over the course of several hours to finally put out the flames. The Illinois State Fire Marshall told news outlets that they are not sure what started the fire, but that it is being investigated. The antique cars belonged to a company called Country Classic Cars, which is known for selling extremely valuable classic cars to collectors and enthusiasts in the surrounding area.
When the flames were put out, Country Classic Cars had lost millions of dollars worth of their inventory. Antique cars tend to be more expensive than normal cars, depending what shape they are in. The business’ owner, Russ Noel, told news outlets that the cars were well kept and of the highest value. Obviously, this is a huge loss for Country Classic Cars. As a business owner, how do you get over a loss this huge? All of that depends on the amount of insurance coverage that Noel purchased when he started the business. While this kind of information is not open to the public, there are a few insurance particulars that we can assume about this event.
First of all, many insurance companies offer antique auto insurance. Since classic cars are built differently and used for different reasons than normal cars, it makes sense for them to have their own separate type of insurance. But, it is unlikely that Noel purchased one antique auto insurance policy to cover all of these cars. Since he was planning on selling them, the cars would be treated as products, not as Noel’s personal vehicles. This means that they should be covered under some kind of business insurance policy.
It is likely that the cars lost in the fire are covered under a commercial antique auto insurance policy. If Noel purchased comprehensive coverage for the vehicles, then his insurance company will help cover the cost of replacing them, but only up to a certain price point. And it is highly unlikely that the policy agrees to pay more than a few million dollars. With the level of damage done in this particular scenario, Country Classic Cars will probably have to eat the cost of replacing the vehicles, with little help from their insurance provider.