Agreed Value Insurance for your Coach

[cmillsap]

I will pass on to the group what my insurance agent told me.

Usually owners looking to initially insure their (new to them) coach applies for a dollar amount of coverage that is exactly the same dollar amount as what they paid to purchase the coach. This happens also because the insurer insists on knowing what dollar amount was paid for the coach. This sets the current value of the coach and becomes the basis for future valuation.

It is common to mistakenly believe that the insurance company will pay that agreed value basis established when the policy was purchased. Unless the policy specifically states that the “Policy Damage Amount” is $XXX,XXX and the “Policy Damage Option” is stated as “Agreed Value” it is not an “Agreed Value” policy.

Rather, it is a ‘Stated Value” policy and is subject to “The Stated Value or the Actual Cash Value, Whichever is Less” rule. That means the value of the coach is subject to an insurance adjuster’s estimated current value just before the damage occurred. More than likely, particularly if some time has passed since the initial basis amount was established, the adjuster will reduce the value.

Relatively very few insurance companies will issue an “Agreed Value” policy on a motorhome. Those that will, usually limit the model age to no more than ten years.
Also an “Agreed Value” policy premium cost will be greater than a “Stated Value” premium cost.

So if you want an “Agreed Value” policy, just make sure it is truly an “Agreed Value” policy and the dollar amount is stated in the Physical Damage Amount section of your policy.

Chuck