Insuring my drop, USAA odity

[Graniterich]

So I called today to see how I would insure my build. Bottom line they will only insure it for retail cost of the trailer, so $350 -$500 for a HF trailer. This was after trying to explain what I built. This is the only way they will do it. I guess the good news is that ALL vehicles insured by them cover up to $5000 in "Aftermarket add ons" . I figure that in the unlikely event I need it, with receipts and pictures, they would pay off. USAA has a very good reputation, In thirty years I have been pleased with them.

[wincrasher]

So you are insuring it as a HF trailer, and hoping they would cover the rest as custom add-ons? Seems like a crazy way to go, but whatever, I don't insure my trailer at all.

I think you'd be better served by finding "stated value" insurance. Most insurers have these kinds of policies, you just have to find them.

[bobhenry]

That is what I have done ! I just went in and asked for XXX dollars of coverage and they charge according to the value that I had set.

[48Rob]

I think you'd be better served by finding "stated value" insurance. Most insurers have these kinds of policies, you just have to find them.

That is what I have done ! I just went in and asked for XXX dollars of coverage and they charge according to the value that I had set.

Please use caution if you choose this approach!

"Stated value" is just that, nothing more, nothing less.
You go to your insurance company and "state" that your item is worth XX.
They are happy to figure and charge you based on that number.
When the time comes to make a claim, the amount you "stated" has very little, if any value in the adjusters figuring of the "actual" value of the item.

You, I, and anyone can "state" anything, but the adjuster, and insurance company determine what the actual value is, and pay accordingly.

Far better is to have an "agreed value" policy.
You and your insurance company agree, in writing up front, based on photos, documentation, and valuations exactly what they will pay.

If you can't get this type of policy, at the very least; provide the company at the time you take out the policy and "state" its value, with (copies of) photos, build logs, comparably valued trailers, and any other documentation you can, to prove you were upfront in proving a basis for value.

Rob

[Jiminsav]

personally, i wouldn't worry about it..if you have all the receipts, and if you get hit while towing, the hitters insurance will pay, if you have it parked at home, your homeowners will cover it. if you are at camp, and it gets damaged, make sure your still hooked to it, and your USAA policy will cover it.
thats what i was told anyways

[48Rob]

personally, i wouldn't worry about it..if you have all the receipts, and if you get hit while towing, the hitters insurance will pay,

Maybe, but "their" insurance adjuster will do their best (their job) to pay as little as possible, just the same as "your" insurance company.

if you have it parked at home, your homeowners will cover it.

Maybe, if it is added on, if not, they might pay liability only, which won't get you a dime.

if you are at camp, and it gets damaged, make sure your still hooked to it, and your USAA policy will cover it.

Maybe.
As with most auto policies, it will cover liability while connected, but only to other parties, they won't pay you for your trailer.

thats what i was told anyways

Lots of incorrect information floating around that turns into "fact" after enough people repeat it.
Insurance companies do not go out of their way to clear up these rampant misconceptions.

It is easy enough to read your policy to determine what they will pay for, and what they will not.
Whatever you do, do not rely on what your "agent" told you. Often they do not know themselves.
They are salespersons, not adjusters, and their word holds no weight in a dispute.

Rob

[mustangcats]

Depreciation, Depreciation, Depreciation...That is what insurance companies use to figure the value of your trailer. And you can bet that a homemade trailer will have lots of depreciation applied. You can show them all the receipts and they will say that was retail and we are only going to pay a depreciated amount, which could be thousands less. Cars depreciate very quickly and so do trailers. Rob is correct on all his points. Guess who's on the hook if a windstorm blows your neighbor's tree over and it lands on your trailer? You are...it wasn't any fault on the part of the neighbor. You may have some coverage from your homeowners for "trailers", but there is usually a special limit. Some people also think that if they have their car in the garage and the garage burns down...the homeowners insurance pays for the car. It doesn't...the auto policy will pay but only if there is comprehensive coverage on the car. Read your policy carefully. You need to make sure you are looking at the actual policy form (it has all the information about what is and isn't covered) and not the declarations pages that you get once or twice a year that show your coverages. If you can't find the policy form, ask your agent for one. Be sure to read all the definitions in the policy form, read what is covered, read all the exclusions, read how losses are settled...and if you have any questions...ask your agent. I think one of the reasons many insurance companies won't insure homemade trailers is because they just can't easily figure a value for them and just don't want to have to deal with unhappy customers when trying to settle a claim. Another is liability, since they don't know for sure how roadworthy the trailer is.

Edit: In addition to the policy form, be sure to have copies of all the endorsements that apply to the policy. These modify the main policy and usually add or remove coverage.

[Bill n Robi]

My .02 worth:
My neighbor is my insurance agent, Progressive
When attached to my vehicle it is automatically covered for damage at the same as the truck - $250 deductible, liability, etc
All contents are covered by home owners insurance
When it is not attached - ie camping, driveway, street - contents covered by home owners, TD needs it's own policy
That policy is $80 a year for me.
Note that the battery, propane tank, TV, anything installed at purchase date is considered part of the TD so if someone stole my battery or propane tank while it is not connected to the truck it is the TD policy that pays not vehicle or home owners policy.
YMMV
Bill

[mustangcats]

I know policies can vary somewhat from state to state, but the automatic coverage for physical damage when attached to the tow vehicle...I don't think so. You might want to double check with your agent on that. There is automatic LIABILITY coverage when the trailer is connected to the tow vehicle (provided the tow vehicle has liability coverage). Like Rob said...a lot of agents don't always give out the correct information.

The personal property contents would be covered under the homeowners, but keep in mind the homeowners deductible will apply...and nowadays is often $1000 or more...so your loss would probably be under the deductible. Even if it was a little over, you probably wouldn't want to turn in a claim because any claim is likely to result in a rate increase.