Re: [A/S] insurance confusion

[tinhutjohn <sargeant@xxxxxx>]

Just one word of caution on the matter of insurance on trailers.
While it is true that your trailer is covered by your auto policy,  for
liability losses, that is for the damage or injury you do to others,
while it's attached to your tow vehicle, it is not necessarily covered
for liability while it is detached from your tow vehicle. You should
check with the broker/agent and see if liability coverage extends to
cover you if someone should plummet down your steps and fracture their
whatever while you are parked. Most speciality RV insurance covers this
instance, but not your average auto policy.
Another concern is the matter of valuation of a loss. If your coverage
is auto based, that is covered by an auto policy, then the wording of
the auto policy determines what is paid. The basic auto policy usually
is limited to actual cash value. ACV is determined a number of ways by
different insurers. Some do a survey of the market place to determine
what a vehicle of simular make, age and condition would sell for on
average on a cash deal basis. Others simply use an averaging service,
like the Blue book, etc to determine value and that's what you get.
Having said that, if your trailer is unusually valuable for some reason,
eg a vintage airstream, as has been suggested before, you should have an
appraisal made, much as is made for a piece of jewellery, or an antique
car, and approach your insurer with that information. They will then set
a rate of so much per thousand dollars of coverage. If your Airstream is
destroyed, your insurer can offer a number of ways of settling your
claim---an agreed amount based on the appraisal, ACV, or for an added
premium and usually for the first few years of manufacture, replacement
of the trailer with a new trailer without regard to depreciation.(Called
a Waiver of Depreciation Endorsement)
Repairs are another matter of concern. Two means of repair are usually
offered. One is to repair the unit with materials of like kind and
quality. Means that used parts will be used if available. Usually the
Waiver of Depreciation Endorsement however, will have repairs made with
new materials, parts etc.
Of concern to most of us who have older Airstreams, is the matter of
them becoming a total loss. A total loss is another way of saying the
cost of repairs is so great that the value or ACV of the trailer is
equal to or less than the cost of repairs. A further means of writing
off as a total loss is used. If the cost of repairs plus what is going
to be realized by the sale of the salvage is equal to the ACV of the
trailer, it is what is known as a constructive total loss.
Having said  that however, one must remember primarily, that an
insurance company is a financial institution. If you can offer a
financial incentive to an insurer, to save them some gelt, then
sometimes you can keep your old battered silver twinkie, and use the
monies realized and a good bit else (usually elbow grease), to restore
your pride and joy.
John & Louise Sargeant
74 International, WBCCI 5530
London Ontario Canada
35 years adjusting claims