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Agreed Value
Just heard from my insurance co. it is time for another appraisal for agreed value on the bus. How often does this requirement happen with your insurance carrier? I just did this 3 years ago to the tune of $500.
Larry
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7 Replies
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Never. State Farm.
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Larry,
3 years is pretty much standard for agreed value policies.
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Agreed value is easy just after the coach purchase because the purchase price is obviously the value if it was an arm’s length transaction.
After two or three years however the agreed value has to be revisited and usually insurance companies want a value from a qualified appraiser or an expert in the industry.
If you don’t have an agreed value policy you get what the insurance company considers ACV or actual cash value. The problem with that is you do not know what that is until the insurance company decides the coach you just crashed is totaled. It may be a fair price, or not. With agreed value you and the insurance company know exactly how much value you are insuring.
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Thanks Tom, Nat’l Interstate claims to have a 3 year policy. I was only inquiring as to what other Companies use as a re-assessment time frame.
So I will take pix and send them off, with the $$ of course.
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Yeah, that’s the question. We have had St. Farm auto/home insurance for over 30 yrs and just assume we will use them, but ageed value sounds like what we would want to do. How does that work? If we crash it and total it, does it mean we get what ever we agree’d on? (with the required premium of course)? If so, any ideas on how much that would cost per year on an agreed value of 150K?
Since we will no longer have a real home, what insurance (liability, NOT driving) should we consider to keep us from losing it if somebody falls on our steps, maybe? then we talk about comprehensive? pricy?
Ok, thanks!
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Contact Miller Insurance Agency. They are a PC advertiser. We bought our Prevost in April and we are very happy with their service, coverage, and premium. No claims yet.
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jct55,
Insurance policies are for your protection and the insurance company’s protection. The insurance company wants to get paid for the risk. You want to be protected from risk. So you both need to agree on what is covered.
If you want agreed value coverage you and the insurance company have to agree so that your coach value is covered, but so the insurance company can be assured you have not inflated the value so a crash becomes a profitable event for you. If you have a $100,000 coach, but insure it for $200,000 the insurance company is going to end up providing you with an unjustified reward if your coach is totaled. Conversely, if you understate its value to save money on premiums, by insuring it for $50,000, if you have an accident with $51,000 in repairs the insurance company will “total” it, send you a check for the agreed value and own your coach. They will put $51,000 in repairs, sell it for its $100,000 real value and get almost all their money back.
That is why an agreed value policy requires a realistic appraised value, something that protects you both.You need to talk to insurance agents who are qualified to address your other needs. We all have some exposure if guests fall while leaving our coach. If we are living full time in the coach, or are thousands of miles from home we need to consider the expenses of either getting home, or of housing until our coach is available again. Do we insure the glass? An XL for example has inexpensive windshields that can be replaced in minutes. It might not be needed in that case. But a later model XLII or H3 has big windshields that are very expensive and that are much more of a problem to install. There are a lot of other considerations regarding insurance, but one thing that you will see often repeated here is if you speak to an agent and they do not understand what a Prevost is, or they need you to explain what is meant by a bus conversion you need to go to a different agent or insurance company.
We have insured through National Interstate and Victoria, through Explorer Agency and through Miller Agency. Both were excellent because they understand Prevost coaches. We had a fire in the engine area on a previous bus and it was a no-brainer because National Interstate understood the coach needed to go to Prevost for repairs and not the closest Camping World, they made sure the repairs would be to the Prevost standards, and they never quibbled with the cost to tow the coach from SC to FL. I am not sure an insurance company that does not understand bus conversions will be as willing to insure your interests.
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