Trailer Value - insurance

[JustinS]

I had a bit of an incident last night and now my dog trailer is considered a total loss. That being said I did not have any dogs on the trailer- Thank the Lord!

I picked up a bunch of fence at the airport near Appleton, WI and put it on the atv pad on the front, and I put two rolls on the back rack to even the weight out on the trailer. I strapped it all down very secure and went on my way the trailer seemed to be doing fine and handled nicely going down the road. when I got near Omro, WI I noticed sparks flying up behind me I thought 0-crap so I started to slow down and pull off the road and then it happend the tounge of the trailer snapped.

The trailer was fully insured and so was the truck I had approximately 450 ft 11gauge 8ft chainlink fencing on it which at about 3.5 lbs a foot equals close to 1600 lbs the trailer has a 2500 lb axle on it and the trailer is light since I put two big roles on the back then only about 4-600 lbs up in front on the tounge weight, so I dont think I overloaded the trailer tounge. All last summer I hauled my work 4 wheeler on it which is a polaris 500 - I think that is heavier than the fencing especially when I didnt have anything countering the weight on the back.

1) is the insurance company going to try to get out of it if they think I overloaded the trailer?

2) How would they determine the value of the trailer - so I can replace it, mine was home made by some guy in MT but it was 14 ft long steel frame with rhino lining, and 4 aluminum dog holes 28" by 30" by 24" tall 6" deep storage on top of boxes on both sides on front was a 52" by 72" atv pad and on the back was an 18" by 72" rack.

Thanks for any replies.

[Zman1001]

Justin,

Sorry to hear about your accident. Thankfully you are good, and the dogs were not on there.

As far as value goes, Get ready to provide them with the purchase price, or comps of what you could go out and buy this trailer for. If it is a new price, they will adjust it down for depreciation (use) to get to a used value. You may have to do a few calculations since it was a home made version (i.e. cost of trailer, then cost of boxes, then cost of labor to put it all together).

I do not think the insurance company will deny due to improper weighting, but they most definitely will have someone come out and look at the trailer to see if there were any faults to it, which could have caused the accident. This could in turn go back to the guy who made the trailer, in that they may try to go after him to recover the money paid to you for improper work (not saying it was, but just a possibility).

Good luck

[JustinS]

Thank you Zman,

One other question is does it matter how much I had it insured for? They asked me what it would cost to replace it when I first insured it and I told them and then that is how I was billed.

[Zman1001]

It all depends (Don't you just love that answer).

If the agent put in there that replacement value was what you gave him, then that is the maximum you will be able to get paid, and should represent "replacement value", but if the agent put it in as new value, then there is a chance they will take that value and reduce it for the number of years of use (if it was new at the time).

[Russ]

Most vehicles and trailers are insured on an "actual cash value" (ACV) basis. You would probably be better off if it is insured on "stated value". If it is covered for ACV, the adjuster will try and figure out the value by finding something comparable in features and condition advertised on the internet. The fact that it was home made should not make a difference. Tell the adjuster it was custom made.

The cause of the accident should not make a difference. Collision is a no fault coverage.

Russ

[claimsadj]

The answer to number 1 is no. The trailer will have an insured value that they base your premium on. They won't pay above that no matter what. That is the max value. They will research and put an acv on the trailer. I would provide them with documentation on what a replacement of like kind and quality would be. That's what they need to know to pay the claim. Make the adjusters job easy and it will benefit you as well.

[claimsadj]

A trailer like a vehicle is acv no matter what. That's the standard at least.

It all depends (Don't you just love that answer).
If the agent put in there that replacement value was what you gave him, then that is the maximum you will be able to get paid, and should represent "replacement value", but if the agent put it in as new value, then there is a chance they will take that value and reduce it for the number of years of use (if it was new at the time).

[Zman1001]

A trailer like a vehicle is acv no matter what. That's the standard at least.

Yes, but for a used vehicle (or trailer), ACV is replacement value. They pay what it cost to replace that item. As I said above, if it was put in as a new value, then they would take that value and reduce it for the number of years of use (which unwritten means they bring it down to acv). If you read both of my comments, you will see that I mentioned that it will be reduced down being that it was used. You are right. That's the standard..

[JustinS]

Thank you for all the replys I am trying to find one like it but not having the best of luck

[Russ]

Yes, but for a used vehicle (or trailer), ACV is replacement value. They pay what it cost to replace that item. As I said above, if it was put in as a new value, then they would take that value and reduce it for the number of years of use (which unwritten means they bring it down to acv). If you read both of my comments, you will see that I mentioned that it will be reduced down being that it was used. You are right. That's the standard..

Replacement Cost in policy jargon means new for old. Some carriers now offer a replacement cost endorsement for vehicles less than a few years old. In the event of a total loss, insured could purchase a comparable brand new vehicle if purchasing this option.