"Wheeling and No-Dealing: My Van Insurance's Masterclass in Stinginess! The Shocking Fine Print!"

I was already in a pissy mood. My van/house had been in the shop three days having the differential looked at. It was my goal to go to the shop and say enough bad words in a loud enough voice to make me feel better and to make them feel worse.

We (Tim) went to the shop (I have no other transportation) to apply some pressure and see what was going on. The next day I was leaving for my planned trip to Alaska. Been working on that plan for a year. The mechanic explained that differentials are hard to get back in correctly. He did it 4 times. I wanted to know why he thought the 5th would be the charm.??

Since I obviously, wasn’t going anywhere soon, (this was May 26–Memorial Day week-end) I told him I needed clean underwear and dog food. Remember everything I own–everything–is in the van.

So they were going to lower my van/house off the lift so I could get it in and get a few personal items.

Well, that didn’t happen.

A few details later the shop owner came to me and said “We need to have a difficult conversation”. I replied, “My house fell off the lift right?” I just had that feeling. You know when you get to the point in your day you say “What else could possibly go wrong?” I recommend never saying that.

The next hour or two was somewhat of a blur. I started by screaming the word FUCK so loud cars driving by could hear it. Then I collapsed weeping and gnashing of teeth. I remember screaming you wrecked my house, my house is destroyed, it's ruined, and things like that

That is the backstory.

The shop owner called his insurance company immediately, By now it was after 4pm. No surprise, but they had all left early because of Memorial Day week-end. The shop owner was very upset. He kept assuring me they would make it right. That’s what we have insurance for, etc.

I cried for 3 days My house was destroyed. In between, my sobs I called my insurance company and filed. The reason I did that, even though I knew it was the shop’s fault, is because I felt like I could trust them I was congratulated on the fact that I have “replacement cost”

My insurance said they would have an adjuster on Thursday, which they did

and I had my offer on Monday.

At this point, we are going to focus on what happened with my insurance company. The reason is after 7 weeks, I have had to escalate the claim with the shop’s insurance company. Remember, too, that no one is on your side so you have to buck it up, If you haven’t already, get out a pen and paper and your policy You are going to want to take notes.

I am going to use my real numbers so you can understand what is happening in real life, in case, God forbid, this happens to you

The first thing that happened was that an appraiser came out to meet me at my van. In this loop, there is an appraiser and an adjuster. They are two different people that have two different roles The appraiser gets eyes on the van and takes pictures. Then the adjuster does something and comes back with the offer.

He made an appointment so I could meet him there to explain that this is a house not just a van. He knew what he was talking about and said it would be totaled without even looking underneath to see whether or not the frame was damaged, he know it was a goner He came in at $41K to fix it which put him over the percentage he needed so he could total it.

My adjuster called me with the great news It was totaled and I would get a replacement. What would you be thinking? I was dancing with my cowboy boots on! This would be over soon and I would be back on the road.

Yeah. That didn’t happen. I was about to find out what my insurance really says.

The appraiser came back with ACV which stands for Actual Cash Value. In my real estate world, Actual Cash Value and Fair Market Value are two different things. ACV is a wholesale price and Fair Market Value is a retail price Apparently that is not so in the insurance world.

I googled and this is what I found.

An Actual Cash Value (ACV) is the value of the car according to widely recognized independent sources such as the National Automobile Dealers Association or Kelley Blue Book . This value is important for insurance and loan-to-value computations.Aug 16, 2016

Replacement cost is the amount it would cost to replace or rebuild an item of similar quality using materials and goods that are currently available. Replacement cost coverage insures your property for what it would cost to repair or replace your damaged property without subtracting its depreciation.

This would be a good time to grab your policy and see if you have replacement cost. If you don’t it only gets worse.

After you pull out your policy, see if the first page says TEXAS MOTORHOME POLICY. Or whatever state you are in.

Mine did. I hope yours does, too.

I bought my Ford van/Coachman house in August 2019. This was just before COVID and I got a good deal. I paid $91,753 for my van plus tax. Within a year the industry exploded and I could have sold my van for twice that. The market has slowed down but it is still very high. I had no idea how this would affect me. Until now.

When the appraiser came back he valued it as $91,753 plus another $5,734 (sales tax) for a total value of $97,487. Of course, I disagreed. I know it is worth more. I called a friend at the dealership where I bought the van and she ran a NADA report. It came back at $132,229 used market value.

This could be the crux of the matter. On the NADA report it also has a number equal to what you would get if you traded it in–wholesale. That number was $101,000 which is probably what they use. Do you think?

Think about this with me. Was I trading my van in? Did I want to wholesale it? If I needed to sell it, wouldn’t I ask fair market value?

Are you feeling screwed yet?

I had many, many conversations with my adjuster to get that number up.

This is where you should be looking at your policy–I was only insured for $91,753–which is what I PAID for it It could be worth $150,000 but I am only insured for $91,753. I found it in my policy. ACV or purchase price, whichever is less

What about yours?

By default, insurance companies use the bill of sale as the value when you buy it. In other words, the sale price, They don’t care if you are a good negotiator or you bought it at a fire sale.

This also made me think about person-to-person selling and writing the bill of sale for less than it was purchased, for tax reasons. I am sure it is against the law but it could also come back to bite you if you had an accident.

Meanwhile, back at the ranch, everyone from both sides is pushing me to take the offer If I were to take the offer from my insurance company they would then go back to the other company to get paid. Made me wonder.

The replacement cost is 120% of the ACV which in this case is what I paid for it $91,753. No negotiating.

My replacement cost would be $110,103.60 (120% of $91,753) plus I would have $5734 for taxes

At this moment, truly at this moment, I have $115,837.60 which includes sales tax.

Oh. But that isn’t all. I still have a loan on my van. It is $27,000 Let’s work with the $115,837.60 and pay off my loan. That leaves me $88,837.60 That isn’t getting me far.

By the way, if you have a big loan on your van, you may as well move to the North Pole. There is no hope for you.

Are you following me? Comment below with questions and I want to hear what your policy says.

It had been about 5 weeks at this point. I am determined that I am not getting screwed, if I have to go to the top dog. Whoever that is.

I expected I would need to get a new loan for $27,000 but if I do that I won’t be “unharmed” because interest rates have changed, My loan is at 5.75% and now the rate is 9.5%. It will cost me $5000 to $6000 more for a new loan in extra interest.

So we have established that my cash-out value is $97,487 ( I take this and go away) and my replacement (why do they now change the verbage from ACV to replacement cost?) cost is $110,103.60. I was all ready to sign the papers.

My insurance company has a 3rd party company that finds the van for you. I wanted to talk to them because I didn’t want just anything.

My adjuster told me that this company has to get a new one It has to come from a dealership or manufacturer. I have a 2020. How many 2020’s do you think are on the lot and have never sold Yeah, right

So he would have to go to the next available year; 2021, 2022, 2023 and the 24s aren’t out yet

I am not dumb. I could see where this was going. I have seen a couple for $145,000 that aren’t quite as good as mine (meaning upgrades etc.) but would do. He was nice enough to explain how this works.

My replacement cost after paying off my $27,000 loan leaves me with $88,837.60.

So he finds one for $145,000.

This is where my “replacement cost” kicks in. I can replace mine with this one for $145,000. Catch. I have to pay the difference!

That leaves me with a new loan of $56,162.40 The payment on that would be about $586.46 over 15 years! My current payment is $571 and most of it is principal because it is almost paid off!

When you use replacement cost you cannot buy used. To find one on your own they cash you out at in this case $97,487 and say goodbye. Do you think I will find one for that price? And then I have to pay 6.25% sales tax, go and look at it, wherever it is, and then make arrangements to get it?

Does this sound like I walk away unharmed?

As I write this, the shop’s insurance company has just scheduled a 3rd appraiser to look at my van. They aren’t getting the concept. I’ll tell you all about that saga in the next post

I hope all of those numbers didn’t confuse you but my biggest point is to read your policy and expect to get screwed. And if you have any suggestions, let me know.

So let’s reiterate,

Replacement cost is not replacement cost.

ACV is not market value.

Your policy is limited to what you paid for it not what it is worth.

You have to fight.

And you will get screwed.

Yes, but you say, it wasn’t my fault. The shop needs to give you a new one. Etc.

It doesn’t work that way, I am sorry to say.

At this point, I have exhausted all possibilities with my company because I am only covered for what I paid for it. Period. The end. I will continue to ask for an exception. Why not?

STAY TUNED

Within the next 10 days or so I will have an update on his insurance. (Oh, by the way, the shop owner isn’t speaking to me anymore and his employees and the insurance company’s employees watch my TikToks to see what I might say .) I will give you all of the details of that fiasco.

AND I am going to tell you why I didn’t get an attorney.

Share this with someone who needs to know this!

Love to you all,

Pam, Coco, DeeDee