Re: [A/S] insurance question

[tinhutjohn <sargeant@xxxxxx>]

The long and the short of the matter is that one has to read the policy/
have the agent interpret it for you. Insurance coverage is a contract
and can vary from state to state and from insurance company to insurance
company. If you accept the contract proferred, you are stuck with it.
My suggestion, as a 30 year + claims adjuster, is to make certain you
buy a contract you can "live with"  for price ,coverage and adjustment
of claims. Some companies have great price and coverage but stink as far
as adjustment of claims is concerned. Discussions like the one going on
in this thread are great, because they have pointed out the many
problems in this area.

Some definitions that get confused:
    Full coverage- aint no such animal-there are lists of circumstances
that take an insured "off coverage"- eg. being convicted of DUI charge
arising out of the incident that caused damage to the trailer. There are
deductibles, depreciation and limitations.
    Actual Cash Value- the average, usually on a cash deal basis, amount
a willing buyer will have to pay for the described item.
            I determine actual cash value by averaging quotes from
dealers in a particular kind of item, eg Airstreams. I ask "what would
you expect to receive on a cash deal for this 1974 Airstream
International. It had a faultless skin, every thing worked, newly
refurbished interior, etc etc."  and describe the merits and faults of
the unit before the accident. The dealer will give me some examples of
what he has on his lot and what he will take for those trailers that are
simular to the 74.  I go on to the next dealer etc. I also consult
services like RV Red Book, Blue Book or simular, that average sales
figures for the month previous to the loss. I will get quotes from RV
Trader on line. I will consult the newspaper, RV Trader magazines etc.
Very often, on inspection of a trailer, you can see how little care was
taken of it and that certainly devalues it. I average the values
obtained and present a written report to the insured showing the value
and how it was arrived at  and how we described his trailer in setting
the value. That's when negotiations start......and I would point out
that one can negotiate. Most adjusters have guidelines of how much they
can exceed the average value for "good neighbours" If the adjuster's
like  me, a little respect goes a long way, a lot of ranting get's my
back up.

    Depreciation- a rate used to devalue an item due to it's age, usage,
and place in the market. (Sometimes a factor of ACV)
    Replacement Cost- the cost of replacing the item in like kind and
quality. (not necessarily with a new item of like kind and
quality----depends on how the insurer interprets that wording)
    Waiver of Depreciation Endorsement-a wording added to an insurance
contract that sets aside the effects of depreciation on the value of the
item.
May be set to equal the cost of replacement in like kind and quality, or
the amount paid for the item. It is usually limited to a set period of
time, depending on the jurisdicition and/or insurer. Sometimes referred
to as a New for Old endorsement.

    Valued- an insured can obtain a contract that sets an amount for the
insured item that will be paid on its "write off".  Eg. The insurance
company will ask the insured to obtain an appraisal of the value of the
trailer and then agree, for a price, to pay that amount if the trailer
is totalled. Most vintage items, trailers, cars, antiques etc are
insured on this basis.
    Write-off / Total Loss -When the cost of repairs plus the value of
the salvage is equal to or more than the Actual Cash Value(ACV)/ Valued
Amount, the insurance company considers the item to be a write-off or
total loss. Eg. Estimated or Appraised Repair Cost is $12,000. Salvage
is $4000. Total is $16,000. If the ACV etc is more than $16,000 then the
item is not a total loss. If it is less than $16,000, it is a total
loss.

A good agent with a good relationship with the claims department of the
insurance company he sells for, is the best insurance. Let's face it,
the policies are roughly the same, so it's what you pay and how the
company pays.

John & Louise Sargeant
WBCCI 5530
74 International
Large hairy dog.