I Can't Say This Enough: CHECK YOUR INSURANCE POLICIES!

[Willy P]

Check your insurance policy with a magnifying glass and a fine tooth comb.3 years ago, my (ex) mechanic was installing new springs on my van. I walked over to the mall for a coffee while it was being done. My phone rang, the shop owner said I'd better come , there had been a fire and it involved my van. Turned out, while using a torch to loosen some nuts, the inside caught and POOF. I wasn't doing cartwheels, but I was smart, I had insurance. I looked over the burned stuff, salvaged a little, but nearly all was a loss. I compiled a list with replacement costs, and submitted it to my insurance company. The total for full replacement was just over 15000. The van was at the mercy of the owners shop policy- first rip. I had bills for everything from a new transmission to new rear diff, new , new transfer case (4wd) and all the dough I had sunk into rebuilding it over the year proceeding, just over 6000. My guess was it was easily worth 10000. Also, the racks and crap I had in there. I got $5250. If I wanted more, it was court. Then I got a call from the equipment policy holder. "Come by and pick up a cheque for 10,000." Not great, but I had a 1000 deductible and I could work with that. Until the phone rang again, the adjuster telling me he had forgotten to depreciate the loss, and the cheque would be for 3700. I felt like I was stiffly kicked in the balls. Now the funny thing is that all claims were sent to subrogation for the shop owners policy. I had enough capitol to not get killed by it, but it still stings to have to make up the difference in the loss verses replacement costs.

Morale of the story - READ the living crap out of your policy. I wouldn't want anyone else to go through that crap.

 

[TimP]

Re: I Can't Say This Enough

Yeah most of the time you get fair market value for your losses. I have an in-land marine policy on my equipment. Which means I get the dolar value of coverage for whatever gets stollen or destroyed. But if my vehicle gets in an accident the policy only pays for market value for the year of the van...in other words what it costs to replace it with the same year and mileage vehicle. Rarely does insurance cover replacement for brand new.

 

[Brian R]

Re: I Can't Say This Enough

Most insurance is just so you don't get completely screwed.
Unless you go to court and acctually win...the insurance company wins. They wouldn't be in business if this weren't true.

 

[Brian L]

Re: I Can't Say This Enough

I would have started out by breaking the mechanic's legs.

 

[Brian R]

Re: I Can't Say This Enough

I would have started out by breaking the mechanic's legs.

I left that part out because I thought it was a given.

 

[Jack May]

Re: I Can't Say This Enough

Good reminder Willy.

Thankfully, I've never been through the likes of what you, or even Tony and Dusty have with their sheds but after Dusty's fire, I had my policies re checked and I got full replacement regardless of age for all vehicles, machinery and equipment.

One of the main reasons for that is that there's not a lot of gear available especially second hand at the drop of a hat in New Zealand. I also negotiated express air freight so that from work go, the supplier can pull all stops and get the equipment or machinery imported at greatest speed without having to factor costs into the equation.

Does it cost me more? of course, but not much and I was surprised at what my broker negotiated for me.... from the same company :?

I hope I never need to claim but I know it's there if I ever needed it.

In the early days, I never tended to worry much because everything I owned with no payments and I was self employed yadda yadda yadda... but with newer vehicles and machinery, and half of it on HP, and a whole lot of gear in my warehouse, if I sustained a fire or large loss, I'd need mega bucks or I and my staff would be out on the street

John

 

[Jack May]

Re: I Can't Say This Enough

One other thing, I also reckon I need $10k to 'set up' a vehicle. Anything from water proofing the back, cargo and vapour barriers, carpeting, shelving, signage etc.

I also got this as it's own line item as well.

Remeber, a broker costs you NOTHING... if you think you may not have sufficient, take your existing policies to a(nother) broker and see what they say. Of course they will try and sell you more, but the thing is to find someone that you trust and also he/she respects you so that you can say no to certain items and discuss options without them getting all sh!tty with you.

John

 

[The Great Oz]

Re: I Can't Say This Enough

Of course the shop should have paid the difference between what their insurance paid and what the van was worth, or they get sued for the difference plus court costs. Attorneys are happy to take on an easy win case on a contingency basis.

Damage your customer's carpet and you'll replace it, not let your insurance company tell them it was worth $500, take it or leave it?

 

[Rex Tyus]

Re: I Can't Say This Enough

I have a rider on my van policy to include the equipment and said value of cargo. Things are different state to state and certainly country to country. But here ifn some mechanic torched your ride the shop owner would be liable for the entire loss of property.