Agreed Value Insurance for your Coach

[cmillsap]

I have been trying to find insurance coverage at a reasonable cost for a coach I am considering buying. I found that RV America would provide an "Agreed Value" policy for $600 less than Blue Sky, $800 less than National Interstate and $1200 less than State Farm.

RV America can issue an "Agreed Value" insurance policy on your bus. That agreed value must be no more than you paid the seller for the bus. The policy is underwritten by Allied Insurance Company.

This can be done by either providing a "Certified Apprasial" of your coach at or above the purchase price or a written & notarized "Bill of Sale" from the seller and proof of payment to the seller of the purchase price. This can be done by providing the insurance company a copy of the wire transfer used to pay for the coach or a cancelled check showing the seller received payment in the same amount at the agreed value amount.

In any case, the agreed value will be what you were willing to pay for the coach and what price the seller was willing to sell the coach at. They assume that the coach is worth no more than the purchase price.

Here's the contact information:

RV America Insurance
Marcos Gutierrez
PH: (818) 735 6770
marcos@rvainsurance.com
rvainsurance.com

[Itchintogo]

Excellent Chuck! I really like being able to provide the bill of sale aspect. It relieves owners of the expense of an appraisal. One should not expect to profit from insurance settlements after all. Thanks for letting us all know.

[DOSZORROS]

The last several years, I have insured under the agreed value program. I try to buy my coaches at the right price, improve them and sell them in about 4 years.

I have insured in this method with about three different insurance companies and have never had to provide an appraisel, proof of cost or any other substantiation. The policies have been set at below NADA book value and I just tell them what price I want the policy written for and this is what we do.

[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

[jwasnewski]

This is what I have done for 40 years.

If no bank note, I insure for liability only. It is like health insurance. There is personal maintenance.

I owned a Beech Baron for 30 years and my agent always asked if I wanted in flight insurance. To which I responded! What for? You wad it up in sky, who benefits? I never bought it?

My bus is 23 years old and the bugs are gone. Short of a tornado, a tree falling on it or an electrical fire what can happen? Most folks only drive 3-5k miles per year. I just self insure and play the odds.

Look how much money is left for improvements!

Your insurance man ain't happy!! So!!

So how much have I saved in insurance premiums in a lifetime?

[philipswanson]

(04-27-2013 00:35)jwasnewski Wrote:  This is what I have done for 40 years.

If no bank note, I insure for liability only. It is like health insurance. There is personal maintenance.

I owned a Beech Baron for 30 years and my agent always asked if I wanted in flight insurance. To which I responded! What for? You wad it up in sky, who benefits? I never bought it?

My bus is 23 years old and the bugs are gone. Short of a tornado, a tree falling on it or an electrical fire what can happen? Most folks only drive 3-5k miles per year. I just self insure and play the odds.

Look how much money is left for improvements!

Your insurance man ain't happy!! So!!

So how much have I saved in insurance premiums in a lifetime?

How true! I think it is one of the biggest ripoffs in car/RV insurance.

Phil Swanson
95 Babybird

[cmillsap]

I think it would be wise to insure your bus against damage to it. And of course, try to get an agreed value policy from your insurance co to protect your investment.

The primary reason I favor insuring my bus is the unavailability of replacement parts if I were unfortunate enough to have an accident and damage it. From what I’ve seen, it doesn’t take much damage for the insurance companies to determine that the repair costs are so high that the bus is considered a total loss. If replacement parts are non existent or too costly to reproduce, the repair costs would exceed the market or agreed value of the bus. Consequently, it becomes a total loss.

Additionally, considering that collision and comprehensive coverage premiums are based on the value of your bus and liability coverage nowadays should be carried at least at $500K or higher, the major portion of insurance premium costs are due to the needed high liability coverage to protect yourself against legal actions.