Need Advice - Dealing With Insurance Appraiser

HunterDave · #1 02-22-2011, 03:41 PM

I've had vehicle insurance for +30 years but I've never put a claim in so I'm green to this stuff.

Last weekend I literally crashed and burned my snowmobile and I'm going through the claim process now. I went to my broker and I'm dealing directly with the insurance company now. The appraiser confirmed that the sled is a total right off and he emailed me a valuation report today. I haven't received my insurance policy yet so I don't know if I'm covered for replacement value or if it's capped at what I paid for the sled.

My broker told me that the figure that they give to me is negotiable. The appraiser told me that it is capped at the amount that I paid for the sled but the report that I received today has an amount that is $65 more than what I paid for the sled.

The problem that I have right now is with the contents of the valuation report. First of all the sled that he evaluated was for a sled that didn't have the X package and the two comparable sleds used, both in Saskatchewan, were not either. I know that the correct sled has to be in the report and the same sleds have to be used for comparison, that one is easy, but shouldn't the same geographical area (ie Alberta) also be used? It seems like a little cherry picking was involved to find lower costing sleds.

Secondly, there was no mention of my sled having electric start.....totally left out!

Third, the costs put on extra accessories were very low. A MBRP aftermarket can was valued at $75 (actual cost +$300) and a gas container/hardware $20 (actual cost +$100) for example. I know that there's depreciation involved but sheesh!

I know that the insurance company is in the business to make money so their best interests will certainly outweigh mine. I'm dodging the appraiser's phone calls until I can educate myself on this one.

I'd just like to hear from anyone with experience with this type of thing and any advice as to what I should expect and how I should proceed. Any brokers out there?

dumoulin · #2 02-22-2011, 05:02 PM

Yup, been there done that. We were robbed (car, jewelery, computer, hunting gear, tools--$40,000), then the hail trashed our roof two months latter ($13,500), heavy rains leaked through the roof and trashed a whole side of our home ($21,000) then our basement flooded ($7,000). Yup, she was a bad one last year!

Did you crash it or did fall of the trailer? If you crashed it, you need to go to the hospital NOW and get a physical even though you might "feel" ok. If anything medical comes up later, you will have leagal recourse...

As for the machine, if it was BRAND new, some insurrance groups will give you replacement value BUT will take some off the top for depreciation. That said, they can compare sled here with some in Timbucktoo but they have no legal recourse to do so. They have to use the a dealer BlackBook to establish a fair price and they have to match options you added. This is especially true for older machines. Remember that they will take some depreciation off the top too for those options.

Best thing to do is negotiate with them hard and don't back down either. It's in their best interest to make money regardless of the relationship they want to create with you--everyone needs to be insured--which sucks. They may want you to buy another machine and then cut you a check for it which will then put you in a bad spot...

Good luck! You're gonna need it!

New Hunter Okotoks · #3 02-22-2011, 05:43 PM

Years ago, I had a chainsaw stolen. It was an old Husky 480. I told the adjuster that I had bought it used for $250 about 2 years earlier. He gave me the option of $175 because of depreciation OR I could replace it with a saw of similar size. I picked up a brand new Husky 394XP and it cost over $1100!

Good luck with the sled. Don't take the 1st offer and X2 on going to the doctor to get checked out.

devo11 · #4 02-22-2011, 06:07 PM

The insurance companies do not make money nickel and diming a 8000 dollar claim, the revenue is in the hundreds of millions and more and to think they make money on attempting to undercut someone for a couple hundred bucks come on?? They take comparables of whats out there currently on the used market and try to get something that is the same or close to what you had... you get market value.. Seriously....

dumoulin · #5 02-22-2011, 06:52 PM

Quote:

Originally Posted by devo11

The insurance companies do not make money nickel and diming a 8000 dollar claim, the revenue is in the hundreds of millions and more and to think they make money on attempting to undercut someone for a couple hundred bucks come on?? They take comparables of whats out there currently on the used market and try to get something that is the same or close to what you had... you get market value.. Seriously....

Your kiding, right?

HunterDave · #6 02-22-2011, 07:24 PM

Thanks for the advice and pm's.

I received my policy in the mail today but I'm still not sure what my entitlements are re replacement value vs purchase value so I emailed my broker, who I trust, for clarification. The appraiser tells me that I'm capped at the amount that I bought the sled for however this is the same guy that told me that the book wholesale value ($5400 or so) was the value of my sled. I asked him if he seriously thought that I could buy the same sled for that price....lol! It was almost like he was feeling me out to see how dumb I was. I found out later that the book retail value was about $7100.

The appraiser has since adjusted the valuation up $400 (?) to reflect that the sled had electric start. It may all be a non-issue because the valued amount is over the amount that I payed for the sled. I just have to find out for sure that my policy is capped and not for the replacement value and I'm good to go.

Thanks again!

HunterDave · #7 02-22-2011, 07:27 PM

Quote:

Originally Posted by dumoulin

Your kiding, right?

x2 A couple of hundred bucks times 100 claims amounts to how much? That's how millions are made or lost.

devo11 · #8 02-22-2011, 07:31 PM

Ya I guess you guys would know how insurance companies operate. Shoulda known.

HunterDave · #9 02-22-2011, 07:36 PM

Quote:

Originally Posted by devo11

Ya I guess you guys would know how insurance companies operate. Shoulda known.

I'm not saying that Devo. I think that all successful businesses watch their purses pretty closely. The worst people that I've done work for are rich and are always trying to negotiate lower or get something for free from me. I'm guessing that is how they got rich in the first place.

chubbdarter · #10 02-22-2011, 07:45 PM

im not picking sides, i know daves a good guy.
but one of the biggest problems with insurance is the brokers have no idea what they are selling you.
if insurance was such a money maker....ask the banks, they are running scared right now. Even under a subscribed policy can you imagine what 911 costed?
in times of economic down turns claims go up substantially.
even a sef19 endorsement isnt a garantee.
again im definetly not bashing hunter dave, just making some points

HunterDave · #11 02-22-2011, 09:13 PM

Quote:

Originally Posted by chubbdarter

in times of economic down turns claims go up substantially.

Yeah, I bet that there's allot of insurance fraud going on especially in a recession. People can't make the payments on their car or whatever and it just disappears and is reported stolen.

Just for the record, I paid cash for my sled.