Agreed Value Insurance Issue

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Agreed Value Insurance Issue

December 02, 2019, 12:46:52 pm

Most people have a standard insurance policy based on the cost or value of their coach, all is well until it is totaled that the insurance company says its old, not worth much, tough luck that all we are giving you.
So we bought this 99 U270 and have mechanically updated and repaired just about everything, transmission, hoses, belts, tires, full brake job, all new airbags and Koni's, been to H&H, Cummins, MOT,
Tires are new, interior all new brushed satin (silver) knobs, hinges, lights and shower enclosure, new Villa high back captains chairs with shoulder belts, Reupholstered couch dining chairs to match new modern recliner and captains chairs, new radio etc etc. Repaired four bad windows, re insulated engine compartment, new antenna, new tail lights and added back up lights. Now at Xtreme getting all stripes painted and the headlight upgrade.
This like many other coaches puts it at a value higher than I bought it for, EXCEPT the insurance company does not see it that way. So my question is how do you get a higher valuation for an agreed value policy, MOT does not do them, how are other members getting the valuation up to something reasonable.
Rudy had pointed me to Thumb insurance and they gave me two quotes BUT need a valuation or appraisal.....
Any suggestions, how have you handled your agreed value ?
Thanks
David

Re: Agreed Value Insurance Issue

Reply #1 – December 02, 2019, 12:53:20 pm

Third party appraiser .. he will put actual value.. not what the insurance company thinks.. been through it and had to hire the 3rd party and him and the insurance worked a total value out. Very simple and the 3rd party guy works for you and does the negotiations.

Was in a crash and went through my carrier.. they tried to low ball it.. hired this guy and he made it work. In the end.. everyone was happy.. as my insurance was getting paid back from the guy who hit me anyway and they had a back up of value..

Re: Agreed Value Insurance Issue

Reply #2 – December 02, 2019, 04:10:38 pm

Safeco, stated value, no haggling

Re: Agreed Value Insurance Issue

Reply #3 – December 02, 2019, 04:13:21 pm

Safeco also agreed value.
John

Re: Agreed Value Insurance Issue

Reply #4 – December 02, 2019, 04:22:03 pm

Same with Foremost, I picked the number and they insured her!

Re: Agreed Value Insurance Issue

Reply #5 – December 02, 2019, 04:57:47 pm

I used Ron Jarvie agency They gave me several quotes for cash value and agreed value and I picked the one I wanted. I ended up with cash value. Meghan at 480/994-9584 was very helpful.

Re: Agreed Value Insurance Issue

Reply #6 – December 02, 2019, 06:18:29 pm

Thanks Everyone, called Safeco, they asked how much and away we were problem solved, no appraisers need, no photos, lists of repairs etc,
Really appreciate the imput
David

Re: Agreed Value Insurance Issue

Reply #7 – December 02, 2019, 08:45:24 pm

One thing I have learned in life.. When someone tells me" Money is no problem" or Cost doesn't Matter"... Always has an issue when they get the bill..

Been with State Farm for 20 years... I was hit and that hit totaled my Rv. The other driver was at fault and his insurance agency is one of the largest in the world. I went through my insurance to make sure it was handled fairly... Turned into a Debate on "How much it was Worth"..

Now typoically this discussion isnt a problem when handing your money over to a Company for "Stated" or "Agreed on Value"..

Problem arrives just like it does with the guy who says "Money is No Problem".. Time to pay and everyone gets Squirmish!!

Take if from a Guy who went through it and pays his bills on time and never had a claim ....Actual Replacement Value didn't mean the same to them as it meant to me... Kinda the same as "unlimited internet" ... Just a little different understanding on TERMS..

When I paid my policy every year they never had any misunderstandings and never did I until it was time to actually replace and pay the bill.

They told me the coach was worth $30k.... I said no its not its worth $50k.. Keep in mind this isnt the guy who hit me insurance.. it was mine that I had been paying on for many years at an understanding that was about to get really muddled..

SO I hire the appraiser and he comes back at $60k .. ok sounds good to me.. My insurance say no that is to much... so the discussion began... at the end the 2 people (my 3rd party guy and the insurance guy) came to an agreement.. $55k it is and we settled..

Take your chances or listen to a guy who has been through it.. No skin in the game and as I tell my son .. Live and learn or learn form others..Its all the same but one way is a whole lot easier..

Re: Agreed Value Insurance Issue

Reply #8 – December 02, 2019, 10:38:59 pm

Quote from: mike leary – December 02, 2019, 04:22:03 pm

Same with Foremost, I picked the number and they insured her!

DavidS is 100% right in my experience, so beware of anything called "cash", "stated value", "market value", or "actual cash value", you are only covered for what you think if you have "agreed value".

If you have anything but "agreed value" insurance, in my opinion you are in for a fight if your vehicle is a total loss, maybe even not a total loss in your opinion.

Example, you have "cash", "stated value", "market value" or "actual cash value" at $50,000, they then charge you a premium on that stated policy value. You have a claim for $10,000 and insurance company appraisal company (now remember they work for insur company) sets value at $20,000. You are in for a battle. Since you are at 50% damage, you might end up a total loss, even though that is not your choice.

"What is stated value insurance?
Stated value is commonly mistaken for agreed value, though the two vary dramatically in the extent of their coverage. Most commonly used to provide insurance coverage for classic cars, an item's stated value is determined by the individual, not the insurance company. While you may even have to provide documentation proving such a value, your insurance company will not necessarily pay this amount in full should you suffer a loss."

"The caveat here, however, is that the insurance company can choose to pay you either the Stated Value or the Actual CashValue, whichever is less. ... With Agreed Value coverage, the insurance company will guarantee that they will pay this agreed-uponvalue in the event of a covered total loss."

Anything but "agreed value" insurance is why you are paying less for your "cash", "stated value", "market", "actual cash value" or what ever your company wants to calls it coverage. "Agreed value" is a legal term.

Re: Agreed Value Insurance Issue

Reply #9 – December 02, 2019, 10:59:41 pm

The Safeco policy I bought today is for Agreed value, it's replacement value is now agreed by the insurance company at the figure in the policy, it does not matter what it would appraise for (higher or lower) they will pay out based on the AGREED VALUE.
If you do not have this your 60 70 80 thousand dollar coach may be scrapped for $40,000 and you have no argument or right to more.

Re: Agreed Value Insurance Issue

Reply #10 – December 03, 2019, 07:59:40 am

Take your chances or listen to a guy who has been through it.. No skin in the game and as I tell my son .. Live and learn or learn form others..Its all the same but one way is a whole lot easier..

And a whole lot cheaper!!!
Chris

Re: Agreed Value Insurance Issue

Reply #11 – December 03, 2019, 10:57:49 am

I just tried to get both NADA and Kelley Blue Book values on my coach. NADA finally gave me a range of value with about a $10,000 spread. Couldn't get KBB at all. Do you have to buy the book to get their values? Let's say NADA says high end is $65,000 and you want agreed value of $80,000... how do you get an " agreed price" coverage? We're registered in S. Dakota. My agent says they can't get agreed value. Time to switch?

Re: Agreed Value Insurance Issue

Reply #12 – December 03, 2019, 11:10:37 am

You decide the agreed value, look at what is a reasonable value for your coach based on what you have upgraded and what you might be able to sell it for - then change insurance company and tell them how much you want to insure it for.
NADA is no help because price will be based on older junk coaches

Re: Agreed Value Insurance Issue

Reply #13 – December 03, 2019, 11:48:18 am

Quote from: Irish – December 03, 2019, 11:10:37 am

You decide the agreed value, look at what is a reasonable value for your coach based on what you have upgraded and what you might be able to sell it for - then change insurance company and tell them how much you want to insure it for.
NADA is no help because price will be based on older junk coaches

Yup, our coach with Safeco, is agreed value.

NADA is funny. Our FT's take a hit, because they don't have leveling jacks

Re: Agreed Value Insurance Issue

Reply #14 – December 03, 2019, 12:55:46 pm

As mentioned before, NADA is meaningless for non-mass-market RVs. NADA is for cars, where thousands and thousands of the same model are sold (and reported) by dealers, both new and used, so there is statistically significant data. NADA for RVs is essentially fabricated numbers based on a very tiny (relatively) number of sales, not necessarily of the specific brand.

Re: Agreed Value Insurance Issue

Reply #15 – December 03, 2019, 01:18:05 pm

Quote from: Michelle – December 03, 2019, 12:55:46 pm

As mentioned before, NADA is meaningless for non-mass-market RVs. NADA is for cars, where thousands and thousands of the same model are sold (and reported) by dealers, both new and used, so there is statistically significant data. NADA for RVs is essentially fabricated numbers based on a very tiny (relatively) number of sales, not necessarily of the specific brand.

Michelle, I totally agree. But NADA is the most liberal when it comes to RV's.
When I was Recon manager for La Mesa RV, that is the one we used for RV values.We never had a Foretravel though.
The difference with our FT's is, they are more of a niche market , or collector market.
Cheers
Chris

Re: Agreed Value Insurance Issue

Reply #16 – December 03, 2019, 01:26:41 pm

Quote from: Chris m lang – December 03, 2019, 07:59:40 am

Take your chances or listen to a guy who has been through it.. No skin in the game and as I tell my son .. Live and learn or learn form others..Its all the same but one way is a whole lot easier..

And a whole lot cheaper!!!
Chris

Thanks Chris

I called my agent (I totally trust, and is a good friend) to clarify "Stated" and "Agreed" You are 100% correct.
Our coach was stated at $39K (a value we put on it, 3 years ago, and before I did all the upgrades). He said Safeco would whittle us down to $20K. It would take an act of congress to get $39K out of them.

So I had him change it to $40K, a value less then I like. But that is what they would pay us, no haggle. It will be an additional $220.00 a year. No estimate, just a couple of pictures.

To insure it for $55K (more realistic value), would be another almost $400.00 yr.. Going to take my chances.

Thanks, I always try to listen to wisdom
Chris

Re: Agreed Value Insurance Issue

Reply #17 – December 03, 2019, 07:46:06 pm

Being some poor schlep who got his Airstream totaled, I agree with Chris; you NEVER get back all you've got into it! I did forget to tell you all when I told my broker what I wanted to insure the FT for, he came down to the park and took a grip of pictures; that's all.

Re: Agreed Value Insurance Issue

Reply #18 – December 03, 2019, 08:00:31 pm

Timely thread for me. Currently insured with progressive with a stated value of $50,000 on an actual cast value basis. deductibles are low between $300 and $500. My yearly premium is around $1600 and change per year. Like $135 a month I think it is. That didn't cover me for uninsured motorists or medical payments since I have my own health insurance. if I wanted to stay with progressive and change to agreed value my policy payment would go up around $45 a month, but it would also include uninsured motorists. Currently I don't drive the coach much I'm just working on it and waiting until retirement which is next May. At that time I plan on driving upwards of $12,000 a year or more. Interested in what others are paying for that type of coverage. That's for $500,000 and $300,000 and it also includes coverage in Mexico. I get a discount through progressive and USAA. I called Safeco tonight just got off the phone with them and their policy for $70,000 agreed on value was significantly higher if I dropped it down to $50,000 agree value it was still higher than progressive. I don't know much about insurance companies and I don't know much about Safeco versus progressive. Would certainly be interested in hearing your thoughts on this. Thanks
Bob

Re: Agreed Value Insurance Issue

Reply #19 – December 03, 2019, 08:28:02 pm

Quote from: Bob and Julie – December 03, 2019, 08:00:31 pm

Interested in what others are paying for that type of coverage. That's for $500,000 and $300,000 and it also includes coverage in Mexico.

Please understand insurance rates are completely (and highly) dependent on your risk pool, which means the zip code you are domiciled and garaged in. You cannot compare across states (since insurance is regulated by the individual states, nor can you glean a meaningful comparison even within the same state for the same dollar value coverage - it needs to be the same coverage, credit rating, and zip code to be able to compare closer than apples to kumquats. A lot has to do with the claim rate, type of claim, and size of claims in the zip code. DFW is vastly different than Austin is vastly different than small town west Texas, for example. Double digit percentage differences.

Re: Agreed Value Insurance Issue

Reply #20 – December 05, 2019, 12:11:09 am

So I have a 89 gv with an agreed value of 32k with progressive (long story that included the dw at one end of the phone arranging insurance when I picked it up) I only wanted 25k max to take care of many future improvements. That being said. What your experience when the s**t hits the fan on agreed value? Paid cash and full coverage agreed value is cheaper than my new motorcycle. Is not agreed not agreed?

Re: Agreed Value Insurance Issue

Reply #21 – December 05, 2019, 02:54:31 am

Quote from: Old phart phred – December 05, 2019, 12:11:09 am

So I have a 89 gv with an agreed value of 32k with progressive (long story that included the dw at one end of the phone arranging insurance when I picked it up) I only wanted 25k max to take care of many future improvements. That being said. What your experience when the s**t hits the fan on agreed value? Paid cash and full coverage agreed value is cheaper than my new motorcycle. Is not agreed not agreed?

Agreed value, is agreed value when it is called agreed value. Called anything else, like cash value, market value, replacement value, it is not.

Sometimes an insurance company will total loss a vehicle at a less % than the following if they feel a sequential damage repair or addition may occur once repairs have started.

I've managed a body shop before, subject to CA law in the 70's. Often the vehicle's owner and us did not want to total, and the insurance wanted to. This was most often a negotiable situation and I've recently found it still is.

From the website insure.com, "If the cost of repairing your vehicle exceeds a certain percentage of your car's value before the accident, insurance companies will declare it a "total loss." Some car insurance companies will total a vehicle if damages are at or above 51 percent its pre-accident value. Other insurers will total at 80 percent."

Total warfare: What to do when your auto insurer totals your car

Re: Agreed Value Insurance Issue

Reply #22 – December 05, 2019, 08:18:34 am

Read Jacks Total Warfare article, they did not mention that if you try buying back a vehicle that has been totaled/ written off as too expensive to repair by the insurance company you will have a salvage title which can make selling the vehicle a little more difficult to sell and reduces substantially what the vehicle is worth, even if perfectly repaired. A salvage title is the auto title with the words salvage written across it.
The Agreed value policy does give the insurance more incentive to repair because they cannot low ball the value of the vehicle.

Re: Agreed Value Insurance Issue

Reply #23 – December 05, 2019, 10:06:30 am

I'm having trouble finding an agreed upon policy. Apparently NC doesn't like these policies.

Can anyone recommend an appraiser? I tried MOT but they do not do this service.

Re: Agreed Value Insurance Issue

Reply #24 – December 05, 2019, 10:56:43 am

Did you try Safeco and Progressive? Why do you need an appraiser? Agreed value let's you insure for an amount you are comfortable with in a complete loss situation.

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