We were discussing vintage trailer insurance on another board, and though slightly different from a homemade trailer, the theory is the same.
While connected to your insured tow vehicle, the trailer is covered...the misunderstanding though is that the trailer is NOT insured for any particular value, it is covered only for liability.
If your trailer causes damage to other property or vehicles, your insurance company will pay for the damages it causes.
It will NOT pay a penny for the trailer.
If your trailer, sitting in the driveway not connected to your tow vehicle, rolls down the driveway and crashes into a car, you have no coverage.
If you want protection for your trailer, connected to a vehicle or not, you must buy a separate policy.
In addition, it does little good to tell your agent you want to insure it for "X" amount.
They will gladly sell you a policy for whatever amount you specify, but if damaged or destroyed, they will use information of their choosing to determine the "actual" value of your trailer.
If most are valued at $400, they aren't going to pay you more...
A "stated value" policy is just that, stated...as in the above example.
Stated by who? The owner.
Are you the owner an expert in homemade trailer values with documentation to back it up?
Stated value policies are better than nothing, but not as good as an agreed value policy.
An agreed value policy is important in that you and the company agree in writing, up front, with appraisals and photos to back up the agreed value.
Then if totaled, those documents determine the "actual" value.
I have an agreed value policy on my current homebuild, and have had them on previous trailers.
The insurance company may still try to reduce the amount they would have to pay in the event of a claim, but so far I haven't found a better option.
Waiting for "someday" will leave you on your deathbed wondering why you didn't just rearrange your priorities and enjoy the time you had, instead of waiting for a "better" time to come along...
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