Different insurance question

[Sanford]

Ok, I know there are numerous post regarding mh insurance. However I need some opinions.

I recently renewed my coverage and decided to do some comparison. I currently have total loss replacement coverage, which the agent says will provide us with a new mh like the one we have should ours be totaled. They have set that current amount at $180k. If we elect to take a payout vs a new mh, then they will pay us based on current value of the mh at that time.

We can take a policy for actual cash value, and save a couple of hundred a year. That policy will pay the current value of the mh. Thoughts on pros and cons?

[Bob Denman]

how much is your "peace of mind" worth?
If nothing goes wrong: you'd be glad to save a couple of hundred bucks...
But what if it does?
With 40 years of selling insurance under my belt: I'm betting that you'd be pretty darn unhappy...

[Sanford]

Good point. My actual savings would be more like $400, but our thought has been to leave it as is, if something happens, take the replacement and if we can no longer travel, sell it.

[Sanford]

Are you familiar with TLR for motorhomes? Does it actually replace what you have lost with a new RV?

[Dbadger777]

[QUOTE=Bob Denman;
With 40 years of selling insurance under my belt: [/QUOTE]

Insurance question for you Bob:
First let me say I love and trust my insurance agent. He has stuck with me getting 5 kids through their driving years. Plus a couple of home robberies.
We don't use our coach much April - October. Only occasional weekday trips.
When we had the Axis, we were on a plan that we would simply call and put the coach in storage. That would drop the premium way down.
Now we have the Hurricane. When I called to put it in storage in early May, my agent told me that I was on a plan that anticipated I would not be using it all the time. He said that based on previous years usage, it would cost me more to abandon the current plan. We are currently paying around 1,700.00 for full replacement of 122K. Your thoughts!

[Bob Denman]

I'm not licensed in Michigan, so I'm not familiar with the rates up there...
I've seen policies with "lay-up" periods before. I'm sure that your Agent is accurate: I'm just not sure how storing the rig in May would put you in a different plan wuith higher rates.

What Company are you with?

[Sanford]

Dbadger777,
We are paying $1100 per year for $180k. Yours sounds a little high to me, but each location is different. We use Nationwide.

[JamieGeek]

Well if you are in Michigan and in Wayne county you are going to pay some of the highest insurance rates in the country.

The best way to save some $$ there is: move out of Wayne county.

[Bob Denman]

There's no doubt: location, is a major component in the premium determination...

[Fish and Dear]

Originally Posted by Sanford

Good point. My actual savings would be more like $400, but our thought has been to leave it as is, if something happens, take the replacement and if we can no longer travel, sell it.

We use Progressive and have full replacement coverage and our deductible is now to zero with the vanishing deductible. It's actually $5k, but we pay $0. I know a total loss would replace the rig with a current year model like we have. Never asked about the cash payment, but if it was on a depreciated amount like you state I think you are right. Take the new rig and sell it if you don't want another.

Who knows...if you were to drive off in that brand new one you might decide to keep it.

[blw2]

Originally Posted by Sanford

......
We can take a policy for actual cash value, and save a couple of hundred a year. That policy will pay the current value of the mh. Thoughts on pros and cons?

I'm certainly no expert...financial, insurance, or otherwise...
but my opinion about insurance questions like this one are that if I am in a financial position that it wouldn't be too big of a burden for me to take actual value and make up the difference to replace it, then I'd most likely take the gamble and take the couple hundred per year.
If I spent in, then I hope it was for something fun
or I could invest it, and then over a few years I'd have a decent pile of cash
or if the worst happens, then it does....but I've already established that I can take that hit without too much of a burden so if that does happen and that's the worst thing that happens to me, then well, it's not too much of a burden....

If on the other hand the difference in current value and the replacement cost would be a big burden.... as in put me under, or make me homeless.... well then, I wouldn't take that gamble and I'd spend the couple hundred per year so that I could sleep easier....

This is how I've thought about collision coverage anyway. Am I wrong for thinking of things that way?

[Dbadger777]

My agent has us with a company called, Fremont. In 25 years with him, we have never been with a nationally recognized company. At least one that spends money to advertise. No sure weather that’s a good or bad thing.

[Bob Denman]

Originally Posted by Dbadger777

My agent has us with a company called, Fremont. In 25 years with him, we have never been with a nationally recognized company. At least one that spends money to advertise. No sure weather that’s a good or bad thing.

Not using one of the larger companies can have it's advantages. They are often providing coverages for a part of the market, that the "Big Guys" choose to not prioritize...
That allows them to tailor the pricing and coverages accordingly.

[DogLovers]

My agent has us with SAFECO Ins. Several years ago (12) I grew tired of the Allstates, State Farms and Liberty Mutuals of the world sticking me up with annual rising costs so I fought back. I listed on paper the details of all my home, vehicle insurance needs. I included values and what my current coverages were (not minimums) along with driver info. I got on the phone for maybe 10 minutes and called several company's and a few agency's asking one question. "What is your fax number?". After that I typed a paragraph telling them I wanted quotes on my listed items and let them know upfront about stellar credit and no claims or tickets. I concluded by asking them not to call unless further info was required but to instead submit a written quote via fax or email. After reviewing all the suitors I selected Safeco Insurance offered by a local agent. They saved me literally thousands of dollars overall on even better coverage than I had previously. Since that time annually I seek better rates/coverage on everything including the Motorhome. My agent consistently holds price increases to a minimum and I have yet to see any quotes better than Safeco including Progressive and some others noted for discounted rates.

The rate on my 2017 Mercedes based Synergy is not much more then my motorcycle insurance which is really low. I don't know who sells what insurance in what state but I would get a quote from a Safeco agent if you can.

As for strategy in replacement new vs. current market value. Every situation will be different. I use my RV for vacation only and not any long term stays so I opted for current value replacement cost. This would allow me to not replace it at all or go shopping for whatever new or used model I decided was next. I guess I see my RV like a car or truck. I bought it new, it devalued greatly the second I drove off with it and it continues to lose value every year. My value is all in the time I spend in it with my family which is priceless.

Hope that helps.