Originally Posted by avanti
Maybe I don't really understand.
Why would the insurer require an appraisal? If you wish to pay for a ridiculous amount of insurance that they would only end up paying in a complete loss, wouldn't they be happy? Seems to me that it would be analogous to life insurance. They will happily sell you as much as you want. No?
As I said, agreed-value not a common type of policy, and it’s mostly used for high end custom builds and restorations. And no, they won’t insure for any arbitrary amount you want like life insurance. You have to prove what it’s worth, and they have to agree to that valuation. I'm on a fiberglass "egg" trailer forum, and it's been used by folks who have done frame up restorations of vintage Boler and Trillium trailers. On this forum I could see it making sense for a vintage Westfalia project, or a high-end custom upfit of a stock van. For a garden-variety, off-the-shelf Class B, no.
If I had just spent $30K restoring a vintage Westfalia with an unrestored market value of, say, $5K, yes, I might want a higher agreed-value policy. It’s not just about a total loss. Let’s say a tree limb falls on the vehicle, and let’s say the repair estimate is $7K. An agreed-value policy would cover the repair. An ordinary ACV policy would total it because the repair exceeds the unrestored value of similar vehicles. They pay out the $5K and take the vehicle as salvage. The alternative is to forgo making a claim and pay the full $7K repair out of pocket.
It also serves as protection in the event of collision damage in which another party is at fault. The higher valuation has been established, which the other party’s insurer must recognize, and your insurer will meet any deficiency in the other party’s policy limits under your uninsured/underinsured coverage. (Don't know about other states, but AZ only requires $10K property damage liability, which is a joke.)
Of course all insurance is a form of gambling, and the house always wins. Since an RV is a non-essential luxury item, you could argue against taking out a loan or carrying any kind of insurance beyond required liability.