Posts: 73
Location: Indiana | I was a claims adjuster for about five years....so I have lots of battle wounds. Most of the time though, it's not the adjuster's fault. It's typically just people not being aware of what cover ages they are purchasing. Insurance doesn't just replace things...unless it's specifically intended to. And most of the time, it's either this or that...whichever is less. The problem is explaining this to a customer who has in good faith paid money, but never understood what they were paying for. Not the adjuster's fault...but they typically are the bearers of bad news.
I'm guessing your agent was estimating the $2000 value for rates purposes only. I could be wrong of course. But this is the first thing to find out...if there is a $2,000 limit for the trailer, that would show up on your declarations page. That is the first page of the policy that states all of the coverages and the costs for each coverage. Look at this. If there is specific coverage for the trailer, it will be singled out. Also, it will say"....actual cash value...replacement cost...repairs...whichever is less...UP TO THE LIMIT OF $2000". If it doesn't say the limit part, chances are the 2000 bucks the agent said was only for rates and not for the policy coverage itself. Of course, if it does list the limit of $2,000...that is definitely something you should be aware of when you are signing the policy. Limits are important...always look at them. If nothing else, look at those.
Also, boat trailers aren't always the easiest things to value. The NADA online thingamajig only gives a generic value. Insurance companies will dig a little deeper when valuing a vehicle. They will typically find others in the area that are for sale with the same options. They will then take those figures and compare it to the condition your trailer was in (above/below average, new tires, etc) and come up with a value. This can take some time, so be patient. If you press them for an offer, they will likely give you a lower one than you would expect. The best bet is to use the same time they're taking to do some research yourself to know what you're looking at.
They will likely offer you the ACV (actual cash value) which would be basically what a trailer similar to yours would sell for in your area. Not the price of a new one. Unless of course it's a replacement cost coverage, which it doesn't sound like. So 6500 for a new one. Three model years old. 10,000 miles on the trailer. some rust spots. similar ones selling for 4000. you're looking at an ACV of about 4000 give or take based on condition. If you want to keep the old trailer for spare parts, that cost would come out of the 4000...so if the wrecked trailer is worth 200 bucks if one were to want to buy it as is...you would get 3800.
The best option is to be friendly to the adjuster. Your agent typically has little say in what gets paid. They are agents. They sell the policy. That is just about it. Ultimately the adjuster and their immediate supervisor only will be the people that will be able to help you. If you are cooperative with them, they will be with you. If you are hostile to them, they won't work as hard to help you...it's basic human nature. The agent though is not the adjuster. Don't make enemies where they are not necessary. Adjusters get threats on a daily basis too. Verbal and physical and the "I'm going to talk to the CEO". Hell, we had locked doors and crap like that in our office. It happens so often it doesn't phase them or their managers. And it will never get past them.
My suggestion is to first understand what coverages you have and what limits you have. Then realize that they are coming up with a value to offer you, and you should be doing the same thing. Then negotiate with them. They'll have a margin to play with...see if you can get a couple hundred more bucks from it. Point out the condition...new tires or bearings...have receipts. Present your case and settle. But keep in mind...unfortunately you'll probably have to shell out some $$ from your own pocket if you want to get a new trailer that matches your boat. You’ll get some of that back when you sell it though.
Hopefully that helps a bit…
Halfpint
PM me if you have any questions
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