NEED HELP INSURANCE PROBLEM

[sarahjohnmolnar]

We are new to the RV World. a year ago we purchased a 38' 5th wheel camper. just a few weeks ago, during a storm, a tree fell on our camper. We had the insurance adjuster come out and he declared it totaled. Then we were told that our policy had a rating basis of $21,990. We bought the camper for approximately 34,000, we owe $28,000. Why would the bank allow me to have an insurance policy that does not cover the amount of the loan. and what does a rating basis mean? Now we need to pay out of pocket and have no camper. We are thinking of buying it back, if that is even possible, that it may not be totaled. We feel they may be saying that so they don't have to pay to have it fixed. Any advise is appreciated. In the end we do understand that it is our fault for not reviewing or understanding our policy.

[westernrvparkow]

Talk to your lender, you may have the option of doing what is known as a "Substitution of Collateral". What that means is you use the proceeds from the insurance settlement to purchase an acceptable replacement for your rig and the loan continues as before. This is often done when someone is upside down on their loan. The bank realizes the customer will often be more likely to pay if they have something tangible that they are paying for. You should be able to get a rig very similar to the unit that was destroyed for the proceed amounts. If you cannot, that is a negotiating chip you can use with the insurance company, the fact that a replacement vehicle is more money than they are offering in the settlement. Good Luck

[Francesca_Knowl]

3 dog nights wrote:
where was the camper when this event took place? Who owns the tree? Was it dead or alive?

Good questions!

If the tree belonged to a neighbor, you might have a claim against their homeowner's insurance, especially if the tree was dead or diseased.

[3_dog_nights]

where was the camper when this event took place? Who owns the tree? Was it dead or alive?

[sarahjohnmolnar]

SORRY ITS NATIONAL

[sarahjohnmolnar]

when we purchased our camper. we were offered three different company's camping store recommended dealing with home site our policy was mailed to us weeks after the transaction. I agree with you they insurance company lowballed the policy to keep our rate low anyfurrtther advice would be graeatly apprettiated my email address is sarahmolnar@verizon.net

[Cummins12V98]

I chose how much coverage I wanted to pay for with my agent.

Yes I would see how much they want for it.

[peaches_cream]

steelpony5555 wrote:
Some companies will insure your rig at a really low price so the premiums are low to get your business. I found this out last year when I realized my Montana was insured for $10k??????? Yep a $30k trailer insured for $10 and I owed $20k on it. Dropped them like a hot potato. And yes they had the cost of my rig brand new cause it still had the invoice in it so I could tell them the exact amount new. I went back to the Lizard. If they give you a rate that sounds too low to be real it probably isn't. I'll stay with national companies since I figure they don't want the hassles of folks coming back at them if they lie.

You, the Insured or Purchaser, have the ability to set the value of your product. The Ins. Co. has the right to accept this number or reject it. When you receive your policy, it states the amount of Insurance subject to certain stipulations. Did you not look at your Policy? Your Agent could have produced the "low ball" number or you provided that number to the Co.

[steelpony5555]

Some companies will insure your rig at a really low price so the premiums are low to get your business. I found this out last year when I realized my Montana was insured for $10k??????? Yep a $30k trailer insured for $10 and I owed $20k on it. Dropped them like a hot potato. And yes they had the cost of my rig brand new cause it still had the invoice in it so I could tell them the exact amount new. I went back to the Lizard. If they give you a rate that sounds too low to be real it probably isn't. I'll stay with national companies since I figure they don't want the hassles of folks coming back at them if they lie.

[I_am_still_wayn]

peaches&cream wrote:

Klueck wrote:
Unfortunately for you, that is how insurance works. When we buy Rv's we need to understand they depreciate fairly quickly and if you don't put down a big down payment, you can easily become upside down. If you would have purchased replacement cost insurance, you could have avoided this problem. The trouble is, you have to know what that is before you can purchase it.

All insurance companies will total a vehicle if it is the less expensive way to settle the claim. That is not unfair, it's just the way it is and is actually talked about in the insurance contract. You can purchase GAP insurance on vehicles, but I don't know about rv's. That would have covered the difference between your loan and what you settle with the insurance company for. They do not owe you for more than the trailer is worth. It's called ACV (actual cash value), which is cost new, minus depreciation. New Rv's depreciate very quickly.

You do have the option of disputing the value they are putting on your trailer. Make sure they have the correct trailer and all the options are listed. There may be some negotiating room there, but likely not a whole lot.

Some people suggested you get an attorney. In my experience as a claim adjuster, I never found an attorney that cared about the damage to the vehicle...they were only interested in the injury claim where they could get some fees. So, I doubt many attorneys would be of much use, and the insurance company would not be phased by threatening to get an attorney. The only thing that would do is not allow them to deal directly with you after that. They only owe what is stated in the contract, which is ACV.

Sorry

As a retired Insurance Agent, I agree with everything you posted. Everyone thinks they can hire a Attorney and that will solve their problems. It will lighten their pocketbook and very seldom solve their problems. The Insurance Co. had much rather deal with a Attorney than a "irate" client. When you hire the Attorney, you give up all rights to negociate with the Ins. Co. The Attorney makes all decisions along with taking your money. The Ins. Co. knows what they are obligated to pay and will vary little from that number. If you could purchase the unit from the Ins. Co. and repair it yourself, you may be able to come out.

All of this is very true, but one very important piece of the puzzle has been left out. It is the adjuster's job to settle the claim for as little money as possible. It is very likely, even guaranteed, that the amount the adjuster offered you is about 75% of what they will pay if you force the issue.

[monkey44]

Most of above it correct - BUT, don't accept the first low-ball offer from the adjuster. We all make mistakes. Make sure you got a credit for everything on the RV, all the extras count. And, negotiate a settlement - insurance companies are in business, and want your claim off the books. the longer you negotiate, it remains a 'working claim' -

In addition, you probably do not have to accept "it's totaled" - get a repair estimate yourself. Then use that to negotiate with insurance company. You could 'accept the repair amount' as payment in full, keep your trailer, and come out ahead.

For example: Right now, you're losing the different between what you paid and what you owe, and what it cost to fix it.

Decide how much the repair costs - offer the insurance company a settle amount that will repair the trailer ... it's often less than that difference but insurance company wants to total, and get it off the books, then will sell it to a salvage or repair facility.

You can often buy it back to that amount, repair the trailer, and get more value out of the whole deal. I know, I did it - won't share here, too long a story, but if you PM me with your email, I'll explain it, and both the insurance company and I came out better than the original "total claim" ... M44

[BillB800si]

When you originally contacted your insurance company they asked what the price of the unit was. That way they can quote you a price for coverage. Some people low ball that price to keep their premiums lower. Later they find out that quoted price is where the insurance company starts negotiating from not the MSRP price.
It's a gamble folks so be sure of the price you give the insurance company. I know AAA Michigan provides replacement cost for the first 5 years of coverage on a new unit.
Good luck...

[peaches_cream]

Klueck wrote:
Unfortunately for you, that is how insurance works. When we buy Rv's we need to understand they depreciate fairly quickly and if you don't put down a big down payment, you can easily become upside down. If you would have purchased replacement cost insurance, you could have avoided this problem. The trouble is, you have to know what that is before you can purchase it.

All insurance companies will total a vehicle if it is the less expensive way to settle the claim. That is not unfair, it's just the way it is and is actually talked about in the insurance contract. You can purchase GAP insurance on vehicles, but I don't know about rv's. That would have covered the difference between your loan and what you settle with the insurance company for. They do not owe you for more than the trailer is worth. It's called ACV (actual cash value), which is cost new, minus depreciation. New Rv's depreciate very quickly.

You do have the option of disputing the value they are putting on your trailer. Make sure they have the correct trailer and all the options are listed. There may be some negotiating room there, but likely not a whole lot.

Some people suggested you get an attorney. In my experience as a claim adjuster, I never found an attorney that cared about the damage to the vehicle...they were only interested in the injury claim where they could get some fees. So, I doubt many attorneys would be of much use, and the insurance company would not be phased by threatening to get an attorney. The only thing that would do is not allow them to deal directly with you after that. They only owe what is stated in the contract, which is ACV.

Sorry

As a retired Insurance Agent, I agree with everything you posted. Everyone thinks they can hire a Attorney and that will solve their problems. It will lighten their pocketbook and very seldom solve their problems. The Insurance Co. had much rather deal with a Attorney than a "irate" client. When you hire the Attorney, you give up all rights to negociate with the Ins. Co. The Attorney makes all decisions along with taking your money. The Ins. Co. knows what they are obligated to pay and will vary little from that number. If you could purchase the unit from the Ins. Co. and repair it yourself, you may be able to come out.

[Klueck]

Unfortunately for you, that is how insurance works. When we buy Rv's we need to understand they depreciate fairly quickly and if you don't put down a big down payment, you can easily become upside down. If you would have purchased replacement cost insurance, you could have avoided this problem. The trouble is, you have to know what that is before you can purchase it.

All insurance companies will total a vehicle if it is the less expensive way to settle the claim. That is not unfair, it's just the way it is and is actually talked about in the insurance contract. You can purchase GAP insurance on vehicles, but I don't know about rv's. That would have covered the difference between your loan and what you settle with the insurance company for. They do not owe you for more than the trailer is worth. It's called ACV (actual cash value), which is cost new, minus depreciation. New Rv's depreciate very quickly.

You do have the option of disputing the value they are putting on your trailer. Make sure they have the correct trailer and all the options are listed. There may be some negotiating room there, but likely not a whole lot.

Some people suggested you get an attorney. In my experience as a claim adjuster, I never found an attorney that cared about the damage to the vehicle...they were only interested in the injury claim where they could get some fees. So, I doubt many attorneys would be of much use, and the insurance company would not be phased by threatening to get an attorney. The only thing that would do is not allow them to deal directly with you after that. They only owe what is stated in the contract, which is ACV.

Sorry

[sarahjohnmolnar]

The camper is not new DEMO 2012 hartland elkridge 35 DSRL it looks like the price for resale is around 32k to 35k the part that, I think is crazy they say its totaled out they bring it to auction and sell it for 15k and pay the loan for 21 is like a skam job like I said it my bad for not reviewing the policy the day I purchased the camper, to think it was under insured for 14k less than the market price stinks live and learn.