by Guest » Tue Jan 15, 2013 01:22 pm
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
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
Posted: Wed Jan 16, 2013 07:21 pm Post Subject:
You are not being treated unfairly. Actual Cash Value = Replacement Cost minus Depreciation. Your vehicle is 5 years older than it was, and is worth less.
"Unless otherwise stated" means you and the insurance company have agreed on a fixed value and you pay a higher premium for that. I doubt this is what you did.
Posted: Thu Jan 17, 2013 07:59 am Post Subject:
Cars depreciate faster than most other assets. Depreciation costs are taken into account by the auto insurers, and your vehicle is 5 years old!!
You can ask your adjuster to raise the amount though, and go for a re-evaluation.
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