Insurance info

[Orren Zook]

If or when you have a loss -your- personal insurance experience will all come down to company underwriting your policy, your agent and the adjuster you have to deal with.

[Jon Wehrenberg]

If you over insure your coach you will automatically put yourself at odds with the insurance company if you have a loss. If the price you wish to insure it for is above the current market value for your coach you must document and prove why that is the case. It is coincidental but there are "twins" to our vintage coaches in the market and their selling prices are going to be the value of our coaches.

Your premium is based on the insured value to an extent.

If you under insure then you are potentially at risk to lose your coach. A minor accident may allow an insurance company the opportunity to write you a check for the whole coach, take it and flip it to someone who will buy it as is for the insured value or maybe a little less but not for a difference that is more than the cost of repairs. You get the insured value, but it is not enough to replace the coach.

I suspect the financial turmoil now gets everybody edgy and insurance companies probably do not want someone over insuring a coach and then driving it off a cliff so they can make a few bucks.

[ronwalker]

Jim,

You asked about a private appraisal company. ADP Autosource appraisals are accepted by many insurance companies. Anticipate 10 days or so after emailing numerous photos and completing a full equipment list form giving condition and materials. They closely compare your coach to similar ones on the market to come up with as accurate a valuation as possible. Cost was $200 a few years ago. Contact Don Clark in Oregon at (800) 351-3133, ext. 4218 or the specialty department at extension 7452.

[JIM CHALOUPKA]

Thanks Ron, that seems to be a good lead. I will follow up on it and let you know the outcome.

JIM

[Ray Davis]

Jim, I'm curious, it seems you are going to a lot of trouble on this insurance stuff. With all of my buses, I have insured them for a reasonable value, without requiring appraisals.

I know you got a great deal on your bus, but you will probably have a tough sell if you are trying to get it to appraise and insure it for a lot higher value. I would ask Steve Bennett for a reasonable number, but would guess off-the-cuff that you would have no problem insuring it for around $250k.

Given that we're seeing 1999 models now going in the $260k to $270k range, I don't think you can reasonably insure it for much more than that.

Ray

[JIM CHALOUPKA]

It is my experience that when it comes to insurance pay outs, all you get is what is described in the policy.

I agree that you need a good agent on your side to get that amount, but he can not negotiate or get you more than what is spelled out in the policy. He can only make sure you get what the policy calls out.

You can insure a bus in different ways. Two follow.

1: For the purchase price, with the bus value depreciating at some rate determined by the insurance co. over the years. This is easiest and most common.

2: For an agreed upon bus value, which does not depreciate over the years, but must be the fair appraised value, by a bona fide entity. Not the purchaser.
This method is more complicated (time consuming), but is necessary to protect ones self so as to get a fair treatment as time passes if a claim should arise.
Not all insurance cos' insure by this method.

A hypothetical situation looked at both ways.

A bus is purchased and within the first year of ownership some tragedy arises and the bus is totaled out by the ins. co.. The beneficiary with the help of his agent gets 100% of the policy minus the deductible. (because the bus value is depreciated annually by the ins co. and you are still within the first year)

A bus is purchased and again without thought to the future, is insured at purchase price, which will be depreciated by the ins. co., after say arbitrarily six years, there is a tragedy and the ins co. totals the bus. The beneficiary with the help of his agent gets some lesser depreciated value than the purchase price, minus the deductible.

A bus is purchased and is insured for the agreed value of the bus as determined by an appraiser.
After time passes say six years, again there is a tragedy and the bus is totaled by the ins. co., the beneficiary with the help of his agent will get 100% of the policy, ie the original agreed dollar amount of the policy minus the deductible.

[JIM CHALOUPKA]

Ray, I am only looking to insure at the fair market value, which I think is a little more than my good deal price.
I think the only way for me to do that is to get an appraisal.

[Joe Cannarozzi]

Jim I hope you do not take as long to go down and get it as it took you to buy it. I don't think the folks could handle that

[phorner]

Jim,

I don't think that you are risking anything with an appraisal (other than the cost) and it does give you a number from an authoritative source that would be easy to defend if you ever need to.

You might want to also compare the appraisal with any documented pricing that Liberty Coach is currently asking for their coaches of the same model and vintage. These documents should give you a pretty accurate number that hopefully both you and the insurance company will be comfortable.

And hopefully you'll NEVER need it !

Best wishes on picking up your new bus.... you must be getting pretty excited about now!

[Ray Davis]

Ray, I am only looking to insure at the fair market value, which I think is a little more than my good deal price.
I think the only way for me to do that is to get an appraisal.

Best of luck in this Jim. I wouldn't have thought you need an appraisal. Obviously it can't hurt.


Ray