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Post Info TOPIC: RV Insurance - Replacement Coverage


RV-Dreams Family Member

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RV Insurance - Replacement Coverage


In 2005, we insured our RV with National Interstate Insurance.  They offered and we took what's called Full Replacement Value, a fixed dollar amount was set for that value.  We expected that as the gap between the Full Replacement Value and the Fair Market Value of the rig widened, our premiums would increase; but, we were totally unprepared for the magnitude of those increases.  Our premium is now so high, we can't afford it anymore and our only choice is to drop this Full Replacement Value coverage.  We both have clean driving records with no accidents or claims.

I'm posting this so anyone contemplating this type of coverage is aware that over time, it might get out of reach financially.  When we drop this coverage, our annual premium would be cut in half (and that's without doing any competitive quote shopping).  Has anyone else experienced this?



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RV-Dreams Family Member

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I am confused by your terminology. As far as I am aware "full replacement value" and " specific dollar value" are two different levels of insurance. Replacement value means that if my coach is totaled, the insurance company has to replace it with something equivalent, and since it is a semi custom trailer, they would have to essentially get me a custom rig. Usually this insurance is only offered for the first 5 years on a new rig. "Specific dollar value" is more like "-agreed upon value" which, more often than not, is the dollar amount that you paid for the rig originally.
We paid $75,000 for our custom rig. to REPLACE it now would cost well over $100,000. But the specific dollar value would probably be the original $75k, which would NOT replace my rig.


Sue

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Sue

2012 Mobile Suites 36TKSB4 pulled by a

2011 Ford F450

2005 Lance 1181 Truck Camper- our vacation home

http://soos-ontheroad.blogspot.com/



RV-Dreams Family Member

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Did you happen to change states of domicile?  We also have National Interstate with the "full replacement value" on our MS.  We have not seen an increase in premiums, although we're still within the time period of 5 years.  In fact, when we moved from Oklahoma to Colorado, out insurance premiums dropped a lot.

Terry



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Terry and Jo

2010 Mobile Suites 38TKSB3
2008 Ford F450
2014 Ford Expedition 4X4 as Tag-along or Scout

Two minor works in progess....pictures taken over the years and a webblog:

Our photos on Smugmug

Ignoring the Barking Dogs  -  Terry's Blog



RV-Dreams Family Member

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On the Declarations page, it is referred to as Total Loss Replacement/Purchase Price Coverage. Whatever the terminology, it's gone now and my wallet is much fatter for the coming year.

Terry, no did not change states, and of course, we are far outside the five years now too.

Anyway, academic at this point as we've decided to drop it to save $1300 on the annual premium.


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RV-Dreams Family Member

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Just a caveat, unless you have sufficient funds already set aside in the event of a loss, I'd be putting a portion of that 1300 into a dedicated fund, just in case. At least enough to build up and cover any deductibles you may have. Odds are, you'll need it sooner or later. You know your situation better than I, so plan according to your needs.

FWIW, Brian



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Brian, Cindi & Josie (our fur baby)

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