stated value policy

by Guest » Mon Jan 14, 2013 10:13 pm
Guest

Hi All,
I have a policy on an rv and when I purchased the policy 5 years ago I requested the the rv be covered for the purchase price of 62k. My policy says actual cash value unless otherwise stated and it shows the 62k under the covered rv. Well I had an accident and they( aaa ins) determined total loss and told me actual cash value is all they will pay because it may have been worth 62k new but not now, and that my stated value is incorrect, so actual cash value or else.
So the 62000 dollar question is are they treating me right? do I have any recourse?
Thanks

Total Comments: 2

Posted: Wed Jan 30, 2013 10:27 am Post Subject:

You drove the vehicle for 5 years. The older the car, the lower its ACV. The value of automobiles depreciate faster than most other assets. The actual cash value will definitely be lower than the purchase price.

Posted: Wed Jan 30, 2013 02:04 pm Post Subject:

I can't see the policy but I suspect it's not a State Value policy. Value's of RV's can vary a lot even when they are the same year and model. For this reason the insurance company has you tell them the value. This is different from a Stated Value policy. Your policy appears to state that your carrier will pay the ACV, up to the dollar amount listed (the amount you listed). A State Value policy on a vehicle would be very rare and you'd probably need to go to a Surplus lines policy in order to obtain one. Those companies are not regulated by the state and can charge whatever they want. The cost of that policy would be considerably higher.

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