The Importance of Carrying RV Insurance Even When Your RV Is Not Being Used

One of the biggest misconceptions that we at LG Insurance Group, an insurance company providing RV insurance in the Marietta, GA area, have heard is that you do not need RV insurance if you are not using your RV. As such, many people drop coverage on their RV when they do not plan to travel for prolonged periods, such as during the winter. However, carrying RV insurance year-round can be beneficial even if your RV is being stored. Here are a couple of the reasons why. 

RV Insurance May Protect Your RV When It Is Being Stored

RV insurance coverage helps protect you in case your RV is damaged while being stored. If a tree limb falls on the RV, someone vandalizes the RV, or the RV floods, your RV insurance policy may help to cover the cost of the damage done to the RV. Issues can arise, even when your RV is being stored. 

RV Insurance Allows You to Travel When You Want

Another reason why you should carry RV insurance is so that you can use your RV at all times. You may not be planning a trip anytime soon, but you never know what could happen. The weather may be perfect, and you may want to take a quick trip. Having RV insurance ensures you can always operate and move your RV. 

If you do not have insurance coverage on your RV, are looking to purchase a new RV, or are interested in a new RV insurance policy, the insurance agents at LG Insurance Group, serving the greater Marietta, GA region, would love to help you get the perfect RV insurance policy. Reach out to us today to learn more.

Understanding Insurance Loss Valuation Options

Insurance can be a confusing topic, especially when it comes to understanding the different types of coverage and their associated terms. One area that often causes confusion is the difference between actual cash value, replacement cost, stated value, and agreed value. In this blog post, we’ll break down each term to help you better understand your insurance coverage.

Actual Cash Value

Actual cash value (ACV) is the fair market value of an item at the time of loss. It takes into account the item’s age, condition, and depreciation. In the event of a covered loss, the insurance company will typically pay out the actual cash value of the item, which means you may not receive enough money to replace the item with a new one. For example, if you have a 10-year-old TV that is damaged in a covered loss, the insurance company will pay out the current market value of a 10-year-old TV, not the cost to replace it with a new one.

Replacement Cost

Replacement cost is the amount of money it would take to replace an item with a new one of like kind and quality. Unlike actual cash value, replacement cost does not take into account depreciation. In the event of a covered loss, the insurance company will typically pay out the replacement cost of the item, which means you will receive enough money to replace the item with a new one. For example, if you have a 10-year-old TV that is damaged in a covered loss and you have replacement cost coverage, the insurance company will pay out the cost to replace the TV with a new one of like kind and quality.

Stated Value

Stated value is a term used in insurance policies for items that have an agreed-upon value between the policyholder and the insurance company. For example, if you have a classic car that is worth $50,000, you and your insurance company may agree on a stated value of $50,000 for the car. In the event of a covered loss, the insurance company will pay out the stated value of the car, regardless of its actual cash value or replacement cost.

Agreed Value

Agreed value is similar to stated value in that it is an agreed-upon value between the policyholder and the insurance company. However, with agreed value coverage, the value is typically determined at the time the policy is written, and it cannot be changed during the policy term. This means that if the item’s value increases or decreases, the agreed value will not change. Agreed value coverage is often used for items that are difficult to value, such as antiques or art.

In conclusion, understanding insurance terms such as actual cash value, replacement cost, stated value, and agreed value can help you make informed decisions about your insurance coverage. It’s important to review your policy and speak with your insurance agent to ensure you have the appropriate coverage for your needs. Contact LG Insurance Group if you need assistance understanding your coverages or other available options.