[VACList] Thoughts on Insurance

["Homebase" <homebase@xxxxxxxxxxx>]

The following is from an agent for RV Alliance a company 
frequently used by GMCers for the Agreed Value coverage many of 
us want:
RV Alliance I have spoken to at length at the FMCA Convention in 
>Perry, GA.
>
>Some companies sell an "ACTUAL VALUE" policy.  They will ask you 
>what you paid for the vehicle and then they will depreciate that 
>figure each year.  Since the GMC Motorhome typically cost about 
>$15,000 to $30,000 when  new and are now 24 to 28 years old they 
>would typically offer to pay perhaps $5000 to 10,000 on a total loss 
>claim.  They determine the value from Blue Book values which are 
>usually grossly understated for old motorhomes.
>
>  He felt that many people mistakenly feel that when they purchase a 
>"STATED VALUE" policy that they will receive that amount in the 
>event of a total loss.  However, he indicates that a Stated Value is 
>only the amount you state when you purchase the policy and the 
>amount on which your premiums are based.  This turns out to only be 
>the maximum amount that will be paid to you if, after the loss, the 
>companies claims adjuster agrees with you on the value.  You might 
>have a $40,000 "Stated Value" but after a loss they might come back 
>to you and only offer $15,000 and you might have a battle on your 
>hands trying to get a higher payment.
>
>On the other hand, if you have an "AGREED VALUE" policy then you 
>have a binding contract with the insurance company that you will be 
>paid that amount in the event of a total loss.
>
>He suggests that everyone should read their policy and look for an 
>attachment stating what will be paid in the event of a loss.  Even 
>RV Alliance cannot offer an Agreed Value policy in all states.
>
>The typical Auto insurance company does not issue Agreed Value 
>policies -- some do, but most do not.  An agreed value policy will 
>require an appraisal of the motor home in advance and the amount 
>will be stated on a rider attached to the policy.
MikeB
Nova Scotia