Escapees July-August 2023

valuation method. This is how most vehicles are valued and rated for on auto insurance. ACV is what your RV would be worth at the time of the loss, should it be a total or partial loss. You might ask, well, how much is my RV worth? That’s a good question! A couple of great ways to get an idea of what your RV is worth is by looking at what other RVs similar to yours are selling for in your demographic area. You can also use online resources like RV Trader, NADA, etc. to get an accurate estimate of valuations. The second way of insuring an RV is on an Agreed Value (AV) basis, sometimes referred to as “guaranteed value.” AV is the amount of insurance the carrier will reimburse you should you have a total loss and is an amount agreed upon by you and the insurance company. Carrier quali fi ca tions can be strict but most can insure your RV on an Agreed Value basis if your RV is less than fi ve years old. At times, more underwriting is involved when requesting a certain coverage limit. An appraisal process could be required to con fi rm the accurate value and may include providing a bill of sale. Keep in mind, that this value will play a part in your premium, so monitor that value over the years. Reach out to your insurance company or agency and make adjustments when necessary to account for depreciation. Most companies will convert this coverage to ACV after a certain number of years, so be cognizant of that as well. Lastly, Total Loss Replacement Cost (RC) is another potential way of insuring your RV. Not all insurance companies will insure an RV with replacement cost and most carriers will have certain stipulations, mostly regard ing the age of the RV. Replacement Cost coverage will replace your RV with a new RV and is considered the highest level of protection as it takes depreciation out of the equation. This might be worth considering should you buy a brand new RV to protect against depreciation if you have a total loss within the fi rst couple of years. A good rule of thumb to determine at what level your RV is considered “totaled” is when the cost of repairing your RV exceeds 70% of the value. As you are aware, COVID-19 caused a lot of disruption with supply chain issues, labor, part availability, etc. Part availability can still play a role in

whether or not your RV is considered a total loss, even if the damages do not exceed that particular company’s total loss threshold. In other words, if damage to your RV was around 40% of the value but there was no de fi nitive time frame on part availability to make the necessary repairs, the insurance company could very well consider your RV totaled. 2 Bells and Whistles A standard RV insurance policy may not cover all potential risks and damages that could occur. Most of the insurance premium on your RV policy derives from your comprehensive and collision coverage. Endorsements can be a cost-effective way to broaden coverage on any insurance policy. Two endorsements worth mentioning to enhance coverage on your RV are Pest and Rodent Damage and Roof Protection. Pest and rodent damage is a common problem for RV owners, especially those who store their RVs for an extended amount of time. Rodents and other pests can cause signi fi cant damage to the interior of the RV, chewing through wires and insulation and leaving behind nests and droppings. This type of damage is often not covered under a standard RV insurance policy, which is why an endorsement for pest and rodent damage can be important. Depending on which carrier is providing your RV insurance, their pest protection endorsement may include coverage for cleaning and decon tamination services to remove any traces of pests and prevent future infestations. If you are interested in broadening coverage in this area, be sure to understand which pests and rodents are covered and how the coverage works. Some policies may only cover damage caused by rodents, while others may include coverage for a wider range of pests and insects. There are also policies that may only cover certain types of damage, such as chewed wiring, but not others, like damage to furniture or appliances. Another key endorsement for RV owners is Roof Protection. The roof of an RV is one of its most vital components, protecting the interior from the elements

51

July/August 2023 ESCAPEES Magazine