Insurance and Rv value

[2Bargos]

I was looking over some of my insurance policies today and while looking at policy for coach, mine is listed as Actual Cash Value.

How is this value determined, I've looked at NADA values on coach and have also searched the web for current prices .

Also are things like new tires,new roof,updates to coach added to price to determined the value.

[okgc]

ACV is Actual Cash Value is not the same as "agreed-value".

[2Bargos]

J-Rooster wrote:

96bounder wrote:
I was looking over some of my insurance policies today and while looking at policy for coach, mine is listed as Actual Cash Value.

How is this value determined, I've looked at NADA values on coach and have also searched the web for current prices .

Also are things like new tires,new roof,updates to coach added to price to determined the value.

IMHO, if your coach qualifies for it, get a actual replacement value policy.

Sounds like good advice,but with age on my current coach it probably wont qualify,or premiums will be unaffordable.
Luckily I don't have anywhere near the nada book price invested in my coach and its paid for so those alone are a big plus in my favor.

[J-Rooster]

96bounder wrote:
I was looking over some of my insurance policies today and while looking at policy for coach, mine is listed as Actual Cash Value.

How is this value determined, I've looked at NADA values on coach and have also searched the web for current prices .

Also are things like new tires,new roof,updates to coach added to price to determined the value.

IMHO, if your coach qualifies for it, get a actual replacement value policy.

[mfinnerty]

Way back in 1997 I was hit by a drunk driver and only had standard automobile like coverage on the MH. It was totaled and the payoff was reasonable. However it would have been twice as much if I'd have had an agreed upon value policy. Believe me I had it on the replacement MH and have it on the latest MH.

[Roger_in_VERMON]

We will never go with ACV again. We had a total loss from a storage warehouse fire and the insurance company wanted to give us about one half of what we believed the cash value was. It did not go well. It took exactly one year of getting the state insurance and banking commissioner involved to finally settle on a more reasonable value. Declared value may cost more but you know what you are going to receive in a total loss situation. We have had our new motorhome for about 8 years and if by chance the worse happens again we will get what we paid for the motorhome. That's Piece of Mind.

[jrp]

ACV is the current depreciated "Book" value of the vehicle. each insurance company has their own preferred version of the "book", NADA is just one of them.
Any significant additions or upgrades would be negotiable adjustments, assuming you have receipts for those items. Some contents categories like electronics, computers, jewelry, have specific limits written in the policy terms, unless you pay for a rider with higher coverage's.
You should also ask your agent about the "rating basis value" of the policy. Many times the rating basis value is set when you first take out the policy, its not automatically reduced as the vehicle depreciates, but with ACV in a totaled claim you're only going to get the current book value. So by letting the rating basis value stay higher, they get you to pay a higher premium, but you'll never recover that value. You have to specifically ask for the rating basis value to be reduced, assuming you keep the same policy for several years.

96bounder wrote:
I was looking over some of my insurance policies today and while looking at policy for coach, mine is listed as Actual Cash Value.

How is this value determined, I've looked at NADA values on coach and have also searched the web for current prices .

Also are things like new tires,new roof,updates to coach added to price to determined the value.

[msmith1199]

Bounder, your post here prompted me to check my insurance coverage. See a new thread I just started on what I found out. You may have saved me quite a bit of money on my renewal next year by prompting me to look into it. I found that I don't have ACV on my coverage and instead my motorhome is insured for about 3 times what it's actually worth. That could be a good deal except it makes the premiums really expensive.

[Francesca_Knowl]

In short: pretty much blue book UNLESS you can show greater market value.

"Actual cash value" as used in insurance means what the item would sell for in the market that exists at the moment of the loss. That number is determined by whatever items of similar age/condition are actually selling or at least advertised for.

We ran into this after a tree jumped in front of my Husband's pristine-condition 1978 Ford heavy half. Insurance company averaged selling prices and made us a lowball offer. But we were able to nearly double the settlement amount by proving that other trucks in the very unusually original condition were selling for higher prices.

We've since gone to an "agreed-value" system for those items we think would otherwise be undervalued.

[Effy]

I think there is replacement value and loan value. Our bank required us to get covered enough for the note. This may or may not be equal to the value, less if you put down a lot of money, more if you are upside down. In our case it's about the same.

[jorbill2or]

Also know that if you are upside down and owe more than cash value you will be held responsable to the loan company ( if you borrowed ) for the difference . This can be a surprise to people.

[rgatijnet1]

You can ask your insurance agent if they will write your policy as "agreed value coverage" which will give you a fixed amount IF the vehicle is deemed a total loss. If they will, they may require an inspection and if they agree, then you can use NADA values, or any other book that they allow. They will not allow you to pick a $100,000 value for an RV that is only worth $50,000 per the book, BUT, if you have some very special modifications, most companies that write agreed value coverage will allow you to add some of their value.
Do not expect this type of coverage to be the least expensive.
Actual cash value is usually determined by an average of various value books that are out there. Any improvements and maintenance items are usually not considered in the final value.

[msmith1199]

It will be a negotiation between you and your insure company. ACV should be what it actually costs you to replace your unit with a comparable unit including taxes. If NADA says $100k, but your insurance company finds other similar units for sale for $75k then $75k is going to be the price. If NADA says $75k but you can't find anything similar for under $100k then $100k should be the price. It will all be a negotiation.