Insured value

Topic: Insured value (Read 1491 times) previous topic - next topic

Insured value

February 20, 2016, 11:29:03 am

Our insurance carrier recently told us that they were reducing the amount of coverage on our coach because it has gotten older. We started out with it insured for what we paid for it, and they didn't object. Now, though, they think it is worth less. I'm not so sure about that. They said that if we could find some numbers to support our value they would insure it for that. I suppose I could try to find an appraiser, but it sure would have been nice to have learned this when we arrived in the Houston area in January, rather than now when we're about ready to leave.

I looked at the chart referenced in another thread about value, but it only runs from 2013 to 1994. We have a 1993 U300 that was about $350,000 new. How do I use that chart to figure the value of our coach? I didn't see anything like ours that has sold at PPL. NADA, of course, is useless.

Re: Insured value

Reply #1 – February 20, 2016, 11:43:36 am

I suspect MOT could do a remote appraisal based on Pictures, miles and condition - or you could swing by if you are in Houston on Monday if you are heading that way

Re: Insured value

Reply #2 – February 20, 2016, 12:32:39 pm

I ran into the same problem with our 1981 40" diesel. The insurance company didn't let me know that I was paying a higher premium for more coverage than they would payout. They told me that I would have to take it to a reliable RV center and get it appraised every year that the value I place on it is over the market value. I gave up as paying that every year was not worth it.

Re: Insured value

Reply #3 – February 20, 2016, 01:47:05 pm

Quote from: kb0zke – February 20, 2016, 11:29:03 am

Our insurance carrier recently told us that they were reducing the amount of coverage on our coach because it has gotten older. We started out with it insured for what we paid for it, and they didn't object. Now, though, they think it is worth less. I'm not so sure about that. They said that if we could find some numbers to support our value they would insure it for that. I suppose I could try to find an appraiser, but it sure would have been nice to have learned this when we arrived in the Houston area in January, rather than now when we're about ready to leave.

I looked at the chart referenced in another thread about value, but it only runs from 2013 to 1994. We have a 1993 U300 that was about $350,000 new. How do I use that chart to figure the value of our coach? I didn't see anything like ours that has sold at PPL. NADA, of course, is useless.

David
I recently had a "fender Bender" on left side of my coach.
People I took it to said most like insurance would "total" it. ($12,857.00)

My insurance company stated $38,000.00 for value of coach. It is in repair now.

SAFCO

Re: Insured value

Reply #4 – February 20, 2016, 09:49:48 pm

Thanks, Tim. I'll give MOT a call next week to see what can be done.

Re: Insured value

Reply #5 – February 20, 2016, 11:03:44 pm

I'll be curious to hear what MOT would do ... if they do anything.

Re: Insured value

Reply #6 – February 21, 2016, 12:00:20 pm

I guess it's good to check w/broker every few years and see what's what. My sister, who's a insurance broker, told me after we dented the AS pretty good, "They will total it, and at your age (70), they'll prolly cancel you" Sure nice to know an insurance co. one has had for 45 years can just drop you because you're "old and in the way."

Re: Insured value

Reply #7 – February 21, 2016, 10:22:04 pm

Sounds as if the insurance company is discussing agreed value versus cash value. Just had the same discussion with an insurance company that I was getting quote from.

Reese

Re: Insured value

Reply #8 – February 22, 2016, 09:21:27 am

I've had my vehicles insured with the same company for 25 years... They have never advised me that I had any one item "over insured".. they instead accept my premiums gladly and I wouldn't know the difference until I had a total loss and I was paid 1/2 of what I was paying premiums on.. I made the inexperienced mistake of "assuming".. I'm doing better in the assuming anything about everything department.

Re: Insured value

Reply #9 – February 22, 2016, 07:45:54 pm

My insurance policy from State Farm clearly states that the coach is insured for "replacement value." I guess I should find out what that means. Replace with what. When I had a sizable claim this summer they first thought about totaling the coach until they did their homework and figured out what out Foretravels are really worth. Having comparable sales at MOT and FOT helps with replacement value determination. I also found out I have no deductable glass replacement that is costing me about $20/year.

Don't make any assumptions. Ask, get it in writing. It used to be that your insurance agent was your advocate in this relationship, not any longer. You need to make sure you are getting what you deserve and what they are obligated to provide. Your "agent" jumped fences and now works for the other side.

Re: Insured value

Reply #10 – February 23, 2016, 10:35:24 am

Quote from: Roger & Susan in Home2 – February 22, 2016, 07:45:54 pm

My insurance policy from State Farm clearly states that the coach is insured for "replacement value." I guess I should find out what that means. Replace with what. When I had a sizable claim this summer they first thought about totaling the coach until they did their homework and figured out what out Foretravels are really worth. Having comparable sales at MOT and FOT helps with replacement value determination. I also found out I have no deductable glass replacement that is costing me about $20/year.

Don't make any assumptions. Ask, get it in writing. It used to be that your insurance agent was your advocate in this relationship, not any longer. You need to make sure you are getting what you deserve and what they are obligated to provide. Your "agent" jumped fences and now works for the other side.

You will find that "replacement value" is another term used by the insurance field for "book value." You can always argue what you feel the "book value" is and is not, but in the long run, the insurance company will pay what they feel is fair. The other term used by the insurance industry is "total value replacement." This is when an insurance company will pay what your orignial price you paid for the coach was at the time of purchase. There is a costly premium for this policy addition and only offered to original buyers at the time of purchase. Most times, "total replacement value" comes into effect automatically after the time expires when "total replacement with new" expires.
Bob

Re: Insured value

Reply #11 – February 23, 2016, 11:17:57 am

We insure to Agreed Value established by an independent appraisal company in Texas. The appraisal company not only viewed our coach via pictures, both inside and out and a list of upgrades. He performed a Foretravel search of "Like Kind" coaches in the US and established a "value". They then prepared a document that was submitted to our company and our coach is insured based on that value. We use Ron Jarvie @ Overland.

I must admit that we should get in touch with them as we have upgraded/replaced a number of items that will make a difference in our "value".

Re: Insured value

Reply #12 – February 23, 2016, 07:00:09 pm

Quote from: Carol & Scott – February 23, 2016, 11:17:57 am

We use Ron Jarvie @ Overland. I must admit that we should get in touch with them as we have upgraded/replaced a number of items that will make a difference in our "value".

Carol & Scott,

Let us know — or better yet, let the Forum know via this thread of posts — when you get in touch with Ron? We're with him, too. We would assume [although previous posts on "assuming" are duly noted] that since he has at least a loose arrangement with the Motorcade Club, Overland would take a more positive view of Foretravels, regardless of their age.

With thanks!

Re: Insured value

Reply #13 – February 23, 2016, 07:04:46 pm

OK.

Re: Insured value

Reply #14 – February 23, 2016, 08:51:07 pm

My discussions with overland was that they call three dealers of the brand to help establish values.

I received such a call as a Foretravel manager long ago and as I knew the coach that had suffered a total loss and had the owner set already on a coming in diesel pusher trade for some reason the insurance value seemed to be roughly what the next coach was going to sell for. Imagine that....

MOT, FOT and the big dealer in Texas I assume would give realistic retail prices as they sell the same used coaches.

Re: Insured value

Reply #15 – February 25, 2016, 10:11:10 am

Quote from: Roger & Susan in Home2 – February 22, 2016, 07:45:54 pm

My insurance policy from State Farm clearly states that the coach is insured for "replacement value." I guess I should find out what that means.

Here's what replacement cost insurance meant to me on a claim about a year ago involving my stored offshore boat, second house, motorhome and shop. I wasn't at all aware of the differences in replacement cost value and actual cash value, and was unaware that I had replacement cost insurance on house and shop.

There were many things stolen, so I'll just focus on one item and give you the claims experience:

One 1998 Kawasaki Trans Mule Diesel. Depreciated value 5200.00, Replacement cost 10,400.00. I received the 5200 as depreciated value. However if I replace it with a new one I will get the additional 5200.00. I am now in the process of doing this. Replacement cost value insurance was explained to me as covering the depreciated value of asset,(if I choose to not replace it) or the full replacement cost value of unit with no depreciation deductions. Basically, cover the cost of a new replacement, just like the unit was when I purchased it initially. It was my decision whether or not to replace the unit. Some things that were stolen I am not going to replace, regardless of additonal payouts.

Good deal then. Enjoy your brand new Foretravel if you have the misfortune of being in an accident! I suspect what they would do is give you your purchase price back, a good question is how they would handle value of upgrades.

It pays to know what kind of insurance you really have.

Re: Insured value

Reply #16 – February 26, 2016, 06:28:21 pm

My insurance agent had me insured for $46,000 three years ago. Their answer today is that Foremost would pay me NADA book value of $26,320. And they "let me" pay for the full coverage amount as the coach depreciated these last three years.

A very simple call to Ron Javier at Overland in AZ was made. Travis, his son in law, helped with some questions and explained, that Progressive uses the Blue Book, and my value is $80,000. I got a quote for $55,000, and will save over 20% of what I was paying. New policy will start 3/1, and they took a credit card. I have already gotten my temp. card, and seen my policy on line.

Thanks all for the thread, information, and helping me better understand and get better coverage and save money.

Re: Insured value

Reply #17 – March 07, 2016, 02:17:21 pm

I'm going through the same thing right now with my insurer. Late last summer I bought a 40' 1997 U295 and immediately had it put on my policy. I was surprised to see that the agent had it listed at a NADA value of $26,000.

The comments about agent loyalty are spot on. When I pointed out that this value was way below what similar coaches were listed for at MOT or FT the agent dismissed that as standard used lot pump ups and they were really selling them for much less. However, I find 50% less ridiculous!

I tried getting a MOT appraisal when I was there last (3 wks back) and the sales manager declined, referring me to Pinnacle auto appraisers instead, which my insurer will accept but not as an agreed value.

I would like to explore some alternatives. A couple folks here have mentioned more reasonable agents/insurers but post as if the names like Overland are familiar to all. Any chance someone could post a phone number or contact info for some of these friendlier alternatives?

Thanks,

Bill

Re: Insured value

Reply #18 – March 07, 2016, 02:37:23 pm

They're all bandits, my sister is a broker and admits it. However, get a new broker and see what Foremost will offer. We're insured for what we paid for her, but the dicey part is prolly if you have enough "incidents", they will either raise your rates, and/or total the coach and cancel the policy. We pay a coach buck & change yearly. Drive safely, watch out for the idiots, they're out there!

Re: Insured value

Reply #19 – March 07, 2016, 02:40:16 pm

Quote from: BillO – March 07, 2016, 02:17:21 pm

I would like to explore some alternatives. A couple folks here have mentioned more reasonable agents/insurers but post as if the names like Overland are familiar to all. Any chance someone could post a phone number or contact info for some of these friendlier alternatives?

A quick forum Search yields several discussions for Overland with contact/website info. Here's the first result that pops up

Discounted Coach-Net Platinum Plus for to a year with Overland Insurance

Ron Jarvie of Overland can review what coverage(s) are available in your specific state (since insurance is regulated at the state level, coverage options aren't going to be uniform across the country).

Another option is Miller RV insurance Miller Insurance Agency That's who we used originally for our coach.

Both Overland and Miller are independent insurance brokers, not insurance companies. They each cover a couple of different insurance companies with some overlap.

Re: Insured value

Reply #20 – March 07, 2016, 08:09:25 pm

Overland has an ad in the Motorcade magazine. If you are a Motorcade member, Overland offers a discount. They also offer discounts for other more populated RV organizations. I found it very easy to request an online quote.

I found it even more enlightening to speak with Ron Jarvie. It's a family business with many years of experience.

Sometimes one may only have a choice between one of two underwriters in their State/area.

YMMV
Bob

Re: Insured value

Reply #21 – March 07, 2016, 09:28:04 pm

Thanks Michelle and Bob for the info.

I did do a search, but must have messed it up somehow as I got no results. I'll use the excuse of being a newbie, but it was probably something else that I didn't do right.

Re: Insured value

Reply #22 – March 07, 2016, 09:30:05 pm

We found Ron Jarvie to be absolutely great! He initially wanted a picture of our coach before working up a policy. I emailed a pic of our 1989 GV and his reply was: "NO PROBLEM!" Our coach looked great.
Ron also went on to explain that we should not insure our car(s) under the same policy--for various reasons, one being greater cost.
We still insure thru Ron and it has been about five years now. He does work to help his customers keep premiums low and still have satisfactory and adequate coverage.

Re: Insured value

Reply #23 – March 08, 2016, 11:35:26 am

Quote from: mike leary – March 07, 2016, 02:37:23 pm

They're all bandits, my sister is a broker and admits it. However, get a new broker and see what Foremost will offer. We're insured for what we paid for her, but the dicey part is prolly if you have enough "incidents", they will either raise your rates, and/or total the coach and cancel the policy. We pay a coach buck & change yearly. Drive safely, watch out for the idiots, they're out there!

Note that it was Foremost that took my money, and offered me less than 50% now as they like to use NADA values. I too was first insured with Foremost for what I had paid. It was Foremost that dropped me to the incredible and stupid replacement value. When I spoke with my old agent, and told of the upgrades and things done, since purchase, they were unable to get Foremost to go with anywhere near the market value, plus the upgrades to be whole again.

Just saying. It has been suggested that I check the "value" each year, and adjust as needed to meet replacement costs that I am seeing coaches being offered.

Re: Insured value

Reply #24 – March 08, 2016, 04:28:49 pm

Please be advised that the insurance terms being discussed such as "replacement cost", "replacement value", "agreed value", etc. are not defined the same by insurance companies. For instance, "agreed value" at National General takes almost two pages to define in the fine print of their policy. "Agreed Value" as defined in the Allied policy takes one sentence. Allied defines "agreed value" as, if the policy holder has a total loss, Allied will pay the agreed value as stated in the policy. National General provides that if the policy holder has a total loss, National General will pay an amount determined on replacement cost, etc. Then, if within 6 months of the loss, the policy holder buys another motorhome that has a value more than the "agreed Value" stated in the policy, National General will pay the difference in what was already paid and the "Agreed Value" not to exceed the cost of the newly acquired motorhome. In other words, to understand what coverage you actually have, you need to read the actual policy.

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