I wanted to quickly post some information regarding Total Loss Replacement Cost and Purchase Price Guarantee coverage. This mostly is going to refer to National Interstate/Triumphe and GMAC clients.
The common explanation for Total Loss Replacement Cost coverage is that if you have a total loss during the first 5 model years, the company will replace the RV with a new one of like kind and quality. OK, that seems simple enough. However, one of my clients who always keeps me on my toes pointed out that if they elect not to replace the RV, then the settlement is based upon Actual Cash Value of the RV at the time of the claim. She is correct and I think this is important to understand.
Likewise, Purchase Price Guarantee coverage which takes over after the 5 model years states that if you have a total loss and replace your RV with one that cost equal to or more than the one you lost then they will give you back the purchase price of the RV that was lost. If you elect not to replace the RV, then once again the settlement is Actual Cash Value.
Finally, let's be sure to understand that 5 model years means current year plus the next 4 model years. For example a 2008 model would have the Total Replacement Coverage for the current model year of 2008, then 2009, 2010, 2011 and through the end of 2012.
I came across your post while researching RV security. Is there a particular type of RV security system you recommend? Can I get a premium reduction if I have a specific type of RV security system installed? Thanks in advance!
ReplyDeleteThe insurance companies require that the RV alarm system be audible. That is the only qualification they ask for to give the discount.
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