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Old 01-21-2015, 08:44 PM
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joshlawn joshlawn is offline
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Insurance Loss Payout Question

All of my equipment, except the trailer was taken a week ago. I valued everything taken at $9,200. My insurance agent said he is looking everything over, and will get back to me this Friday with a price. I'm confused now, I paid in full the policy for $8,450 in equipment and $1,000 for tool loss. So shouldn't the payout be $9,200, or at the least $8,450 minus the deductible($500)? Since what I insure is the replacement cost of the equipment.

Who out there has had to deal with an insurance loss like this? Can you give me any advice, and let me know what to expect?
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Old 01-21-2015, 08:55 PM
Pressedun Pressedun is online now
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Someone correct me if I'm wrong, a shot in the dark here... But do insurance companies take into account depreciation when paying out an insurance claim?

That would be the only reason I see he needs to figure out numbers. That or he's looking into the value of everything you owned.

Simply spit balling here, no flames!
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Old 01-21-2015, 09:45 PM
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Efficiency Efficiency is offline
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We had a trailer full of nearly new exmarks and stihl stuff get stolen this year. None of the mowers had more than 200 hrs. Value was somewhere around 33k. The insurance compensated us just a little more than 20k. Our payout was all based on our declared value when we listed our items for inland marine coverage. Now we overstate their value so we don't get hammered so hard if we have a theft again.
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Old 01-21-2015, 10:01 PM
windflower windflower is offline
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Depends on what your policy says. Mine pays what I paid for it no matter it's age.
Agent may be looking into values. I had a claim on my boat a few years ago. Adjuster delayed for a month and finally sent a check for the declared value less the deductible.
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Old 01-21-2015, 11:21 PM
GQLL GQLL is online now
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This is when you have to know your policy. My inland marine policy covers up to full replacement value for what we declared. Most policy unless you state it do depreciated value of equipment.
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Old 01-22-2015, 03:55 AM
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TPendagast TPendagast is offline
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Quote:
Originally Posted by Efficiency View Post
We had a trailer full of nearly new exmarks and stihl stuff get stolen this year. None of the mowers had more than 200 hrs. Value was somewhere around 33k. The insurance compensated us just a little more than 20k. Our payout was all based on our declared value when we listed our items for inland marine coverage. Now we overstate their value so we don't get hammered so hard if we have a theft again.
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You Don't HAVE to accept their first offer.

Insurance settlements are like haggling a business deal.

when they tell you how much they will pay out, just imagine they said "how about" in the front of anything they just said.

See the ting about insurance is they will lowball offer first, they bank on the fact that you need the money right away to get going again, like "I need my car to get to work!" so they give you so money, you accept and move on.

HOWEVER, insurance companies have ratings, the ratings are based on how many open claims they have at anyone time and how long it takes them on average to settle a claim and how long their longest has been.

So they are motivated to close their claims quickly, if you refuse their first offer, there WILL be another one, they can't afford to ignore you an leave the claim open.
You will be especially successful if you have pricing comparisons to present tot them yourself, which shows them why you say they are wrong.

also consider that your primary insurance adjuster is the company's equivalent a drive thru window attendant, they are neither the sharpest tool in the shed, nor do they have the authority to settle for more than 75% of the allowed amount.
They do have supervisor and you will hear from them…that is IF you can hold out and wait and don't "need the money" immediately.


So remember when an insurance company is "settling a claim" it's just like lawyers "settling" out of court.
You don't have to accept the settlement. It's a bargaining duel. How fast do you need it? How quickly do they want to close the claim?
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Old 01-22-2015, 08:54 AM
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Efficiency Efficiency is offline
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Originally Posted by TPendagast View Post
You Don't HAVE to accept their first offer.

Insurance settlements are like haggling a business deal.

when they tell you how much they will pay out, just imagine they said "how about" in the front of anything they just said.

See the ting about insurance is they will lowball offer first, they bank on the fact that you need the money right away to get going again, like "I need my car to get to work!" so they give you so money, you accept and move on.

HOWEVER, insurance companies have ratings, the ratings are based on how many open claims they have at anyone time and how long it takes them on average to settle a claim and how long their longest has been.

So they are motivated to close their claims quickly, if you refuse their first offer, there WILL be another one, they can't afford to ignore you an leave the claim open.
You will be especially successful if you have pricing comparisons to present tot them yourself, which shows them why you say they are wrong.

also consider that your primary insurance adjuster is the company's equivalent a drive thru window attendant, they are neither the sharpest tool in the shed, nor do they have the authority to settle for more than 75% of the allowed amount.
They do have supervisor and you will hear from them…that is IF you can hold out and wait and don't "need the money" immediately.


So remember when an insurance company is "settling a claim" it's just like lawyers "settling" out of court.
You don't have to accept the settlement. It's a bargaining duel. How fast do you need it? How quickly do they want to close the claim?
In my situation, the payout was based on my stated value of all items when they were itemized for the Inland marine coverage.

It's a contract. We pay for coverage of declared value, they calculate risk and pay what we told then its all worth. There is no haggling after a business contract is signed.

Some small items like a grass catcher for example they paid 75% and then said they would pay additional to get to replacement cost once I showed receipts of what actual replacement was.
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Old 01-22-2015, 09:06 AM
cmo cmo is offline
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Quote:
Originally Posted by joshlawn View Post
All of my equipment, except the trailer was taken a week ago. I valued everything taken at $9,200. My insurance agent said he is looking everything over, and will get back to me this Friday with a price. I'm confused now, I paid in full the policy for $8,450 in equipment and $1,000 for tool loss. So shouldn't the payout be $9,200, or at the least $8,450 minus the deductible($500)? Since what I insure is the replacement cost of the equipment.

Who out there has had to deal with an insurance loss like this? Can you give me any advice, and let me know what to expect?
Don't want to bring up bad memories but........
Where was the equipment located when it was stolen. Outside of a store, your driveway, a storage facility. I'm just curious how it happened.
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Old 01-23-2015, 03:01 PM
hackitdown hackitdown is offline
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I pay for "replacement value" on my equipment. My agent asks every year for an updated list of equipment, and the replacement cost. According to the agent, if the stuff is stolen or burns up in a fire, they would pay for replacement.

I imagine there are many other types of policies.
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Old 01-23-2015, 05:15 PM
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joshlawn joshlawn is offline
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Quote:
Originally Posted by cmo View Post
Don't want to bring up bad memories but........
Where was the equipment located when it was stolen. Outside of a store, your driveway, a storage facility. I'm just curious how it happened.
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The equipment was stolen from the side of my house.


Everybody else: I read through my insurance policy and didn't find any info about their reimbursement policy. I don't know if they depreciate the stated value or simply payout the amount I have insured. I'm not sure why I never asked about the coverage before. Anyways, I'm supposed to hear from my agent today with an offer price.
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