Re: [VAC] Insurance

[Jimzimmer2@xxxxxx]

Gary....   I understand your plight from two different angles.  One as a 
consumer for my now destroyed 63 Safari, and the other as an Independent 
Insurance Agent.  I had my Airstream insured for 6,000 Stated Amount.

This works ok, as long as the stated amount is equal to the current value, 
and really presents a problem if it way below the current value.  An example 
would be: Current Value $10,000. Insured for stated value of $4,000.  You 
have a partial loss of $5,000.  The insurance company pays you $4,000, the 
maximum they can pay.  Then they have you sign the title over to them, since 
it is declared a total loss, and the salvage belongs to them.  At this point 
you scream and holler that the trailer is repairable and you want to keep it. 
 Too Bad, so sad, it belongs to them.
If you would have had a Stated Amount equal to current value, they would have 
paid you $5,000 and you could have it repaired.

Now, if you had it insured for Actual Cash Value (equals current value), they 
would have checked out current value, paid the $5,000 (less any deductible), 
and gone away and you would be happy, hollering THANK YOU, as you watched 
them leave.

The problem with Actual Cash Value on Classics such as yours and mine (now a 
62 Globetrotter that I insured for $2,500, which is what I paid for it, so 
that is current value), is what rating base does the company use.  Some use 
Original Cost New, some use what you paid for it.

Either way, the premium should come out pretty much the same.  Just make sure 
your stated value is up to current value.

Hope this helps.  I know we as agents have a hard time sometimes getting the 
insured to be realistic about value.  Everyone wants to save some money, but 
underinsuring it is not, particularly if you have a loss.

Jim & Joanie
62 Globetrotter 19ft
WBCCI 9289  WDCU 170
and a Dog named Champ