Insured Value

Fulltimer50 · 09-25-2018, 12:09 PM

Just found out the other day that Progressive uses an insured value that doesnt change (go down) as time passes unless you tell them. This means that if you started with a $166K value, in say 5 years you still pay the premium for that value even though they will only pay the actual cash value at the time of a claim. I asked the agent so if I use policy value of say $87K and the actual cash value is only $75K, what would be the difference in premium ? $200/year was the answer. Well worth checking out I would say.
I didnt ask at the time but I would guess that if you are under insured (using a value less than what it is worth) that they would then only pay up to the insured value). This makes sense but I dont know if true. Note that I am not talking about replacement value policies where they pay the replacement price.

The Gritz Carlton · 09-25-2018, 12:15 PM

Most boat and RV policies have what they term as "agreed value" and that's what you are insured up to. Keeping inline with actual cash value and changing your policy as your toys age is up to you. They are only in it for the money. Bob Denman here can probably expand on this a lot more than me or most others. He'll troll along here in a few minutes and enlighten all of us. We currently have "replacement value" but I'm not sure how long Progressive offers that coverage from the date we purchased.

Bob Denman · 09-25-2018, 12:20 PM

Yup! Look for an "Agreed Value" policy...

You'll get what you've insured it for; but you WILL pay for it!

The Gritz Carlton · 09-25-2018, 12:30 PM

Bob...if we continue to pay the premium for "replacement value" and the RV burns to the ground...do they pay full value for current model/year? Is there a time limit based on age of the RV as to how long they will continue the "replacement value" clause?

Bob Denman · 09-25-2018, 01:20 PM

This is when the whole "Read The Fine Print" game becomes important.

Some will pay on replacement value for only the first year; some for two years.
I haven't seen any Company go much beyond that.
But if you insure for an "Agreed Value": that's the amount that you'll get...

BUT... you'll want to keep an eye on what your agreed value is, and make adjustments to it as your needs might suggest...

TurnerFam · 09-25-2018, 01:23 PM

there 'could' be some wording, as such, but if your policy is truly REPLACEMENT COVERAGE, then you are covered for such, no matter the age at the time of the claim. Also, the idea that 'replacement' coverage gives you a NEW coach is not realistic... you'll find that the wording is a replacement of the YEAR MODEL of your coach, or otherwise the amount of money that one of this year/model would cost in the used marketplace.
Most policies for automobiles that come with the advertised 'replaced with a NEW vehicle', are only available during the first 12 months of ownership of a brand new vehicle, not one that has exceeded that time frame - so it's a 'temporary' type of coverage.

Agreed Value is more common among classic/antique cars, and many RVs. YOU decide the value, the insurance company AGREES to this, and then this becomes the amount you receive in the event of a Total Loss. If not a total loss, then the claim is typically paid under the 'cash value' depreciation method, not replacement cost.

ACV(Actual Cash Value) is the type of coverage where you simply purchase whatever amount you wish, no matter the actual retail/street value of your RV... you then take the risk that you have either purchased 'too much' coverage, or 'not enough', because the only time that Value is really determined, is at the Time of the Claim... sometimes years down the road, when you've completely forgotten or overlooked your coverage limits you originally purchased. Yes, you should be able to change your coverage every year you wish, if you want to, as your coach 'depreciates' in real world value. You'll never receive MORE than you purchased, even if your coach is actually worth more at the time of the loss, but you could certainly receive much LESS, even if you insured it for more than it's actually 'worth'. The 'worth' or 'value' at the time of loss is the real aggravation point for most, since used street value of RVs and vehicles are usually much less than we 'think'... our ownership and emotions, and sometimes how much we 'still' owe, usually make us think they're worth more than they really are.

Bob Denman · 09-25-2018, 01:56 PM

But every State has it's own set of insurance regulations; it's always best to check with your Agent.

TurnerFam · 09-25-2018, 02:32 PM

yep, and while the general idea of these coverage types are similar, no matter what state your policy is issued in, the state's themselves regulate many times 'how' these wordings are handled. You may find that your neighbor next door in state 'x', with the same RV and same claim, has a slightly different outcome than you do in your state.

Insurance is a state regulated product, not a national product, so each state's regulation prompts insurers to word their policies and coverages differently - which is why you see the 'not available in all states' FINE PRINT wording on most insurer advertisements. You'd be amazed at the differences between one state and the other - even though we're all led to believe that it works the 'same' everywhere.

I don't condone nationalizing insurance, but it does have it's differences between all 50, and some territories, as well, which can be confusing and aggravating. Even the minimum limits of liability insurance coverage is not the same between all states, and yet your policy will 'increase' your liability automatically, if you are driving in a state that requires a higher limit...interesting... we live in a mobile nation.

( a different, but similar subject, is the 'licensing' of owners who live in certain states with larger RVs, such as over 26,000lbs, or longer than 40', for example. Those states impose a separate 'endorsement' on their license, after completing a written test and a driver test. But, what if you don't live in a state that has such a requirement, and are just passing thru, or even visiting one of these states, in your 'large' RV?
The answer: They don't care... you are not their responsibility, for this specific requirement, because you are not registered or licensed there. Otherwise, all of us would have a lot of difficulty traveling, in certain larger RVs - the states understand that they are all different, and they allow for 'reciprocal' laws - meaning that visitors are NOT under the same rules of the state they are passing thru or visiting, but only those of the state where they reside, are licensed, and are registered.) FUN!

Cummins12V98 · 09-25-2018, 02:53 PM

Since new I have had a 100K policy added to my Truck policy. I pay $267 every 6 mo.

This is thru farmers, they checked with Formost their subsidiary that covers Boats Motorcycles and RV's and they were more for the same coverage.

We full-time but still have a home that is also insured with Farmers.

The Gritz Carlton · 09-25-2018, 06:41 PM

I have agreed value on the boat and adjust it yearly. I have replacement value on the RV and it clearly states current year, make and model at the time of the total loss.

Bob Denman · 09-25-2018, 06:59 PM

Smart: very smart...

Fulltimer50 · 09-25-2018, 09:29 PM

Quote:

Originally Posted by The Gritz Carlton

I have agreed value on the boat and adjust it yearly. I have replacement value on the RV and it clearly states current year, make and model at the time of the total loss.

Then that is not replacement value on the rv. That is market value at the time of loss.
Unless I dont understand what you mean.

rynosback · 09-25-2018, 09:46 PM

Quote:

Originally Posted by Fulltimer50

Just found out the other day that Progressive uses an insured value that doesnt change (go down) as time passes unless you tell them. This means that if you started with a $166K value, in say 5 years you still pay the premium for that value even though they will only pay the actual cash value at the time of a claim. I asked the agent so if I use policy value of say $87K and the actual cash value is only $75K, what would be the difference in premium ? $200/year was the answer. Well worth checking out I would say.
I didnt ask at the time but I would guess that if you are under insured (using a value less than what it is worth) that they would then only pay up to the insured value). This makes sense but I dont know if true. Note that I am not talking about replacement value policies where they pay the replacement price.

Interesting. I think the agreed value with Progressive is 5 years. And you have to do it with in the first three years of when it was made and have to be the original owner.

Fulltimer50 · 09-25-2018, 09:59 PM

Quote:

Originally Posted by rynosback

Interesting. I think the agreed value with Progressive is 5 years. And you have to do it with in the first three years of when it was made and have to be the original owner.

I tried to get replacement value when I first started talking with Progressive.
I am the original owner and I purchased new Oct 2016. They would only go to $75k.

The Gritz Carlton · 09-25-2018, 10:04 PM

"Then that is not replacement value on the rv. That is market value at the time of loss.
Unless I dont understand what you mean."

Market value is what somethingis worth. Replacement value means they will totally replace it with another new one, same make and model...current year. If it burns in 2020...they buy me a new 2020...same model or as similar as what is currently manufactured.

rynosback · 09-26-2018, 03:50 AM

Quote:

Originally Posted by The Gritz Carlton

"Then that is not replacement value on the rv. That is market value at the time of loss.
Unless I dont understand what you mean."

Market value is what somethingis worth. Replacement value means they will totally replace it with another new one, same make and model...current year. If it burns in 2020...they buy me a new 2020...same model or as similar as what is currently manufactured.

If mine gets totaled, they cut me a check for the agreed amount that I set it up with. As campers are not like cars. I have 2 pages of custom changes when I had my rig built.

rynosback · 09-26-2018, 03:52 AM

Quote:

Originally Posted by Fulltimer50

I tried to get replacement value when I first started talking with Progressive.
I am the original owner and I purchased new Oct 2016. They would only go to $75k.

WOW, really? Have you talked to a couple of reps there to make sure? I had an agreed value with Blue Sky and Progressive. As when researching, I was read that was the way to go.

Cummins12V98 · 09-26-2018, 03:46 PM

100k is the highest they would insure a RV at the time we bought ours. We actually paid around 130k but the reality was the day I took possession it would be worth about 100k!

"I have 2 pages of custom changes when I had my rig built."

You got my curiosity up so I looked, we had 5 pages. YIKES!!!

Lbatt · 10-06-2018, 07:25 PM

Progressive was $200 more for my ACE than SafeCo. Would only insure for what I PAID, $63K vs. NADA of $90K. About $800/yr. Seems high for as little as it is used. Son pays $230/yr but a 1996 Bounder and probably carries the minimum. I carry high coverage.

The dealer had my VIN wrong and it turns out it is a 2016 vs. 2017, and Safeco added another 12% to the original quote, "because it is a year older, and parts are harder to get". Safeco, it is 2018...so parts for a 2016 are NOT "harder to get". Jerks. Looking for other options.

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