Al3x Lee is RIGHT about ACV coverage.

[MIGA1626]

I read this somewhere where Al3x said that the carriers just need to do ACV... this is correct. Why should the carrier pay to "undepreciate" your overly depreciated property for you because you heard some wind last night? Doesn't make sense. Also, 90% of clients DO NOT CARE. They always always say "I just want want I have in it back if it burns down". I know the adjuster guy is going to come out the woodwork and tell me I'm wrong and that ACV isn't "Market Value" but come on.... we all know its just market value lets just admit it.

 

[adjusterjack]

I read this somewhere where Al3x said that the carriers just need to do ACV..

I have no argument with that. As long as the clueless insurance buying consumer is willing to accept the consequences.

Why should the carrier pay to "undepreciate" your overly depreciated property for you because you heard some wind last night?

Because the carrier is being paid extra to "undepreciate" the property. Replacement Cost coverage costs more than ACV coverage.

Also, 90% of clients DO NOT CARE. They always always say "I just want want I have in it back if it burns down"

Of course they say that to you when they are buying the policy and want a lower premium. I guarantee you that when it comes time for the claim they will be pissed that they don't get paid the full amount of their loss.

"My agent said ACV was Market Value. This isn't enough to rebuild my house." "No, it isn't, but it's the coverage you bought. Here it is, in your policy, read it." Insured reads. "Oh, I see. But my agent said..." "Didn't your agent give you the option to buy Replacement Cost, at a higher price?" "Uh, yeah, but I didn't want to pay that much for the insurance." "So, you made the choice to buy ACV coverage?" "Uh, yes, but my agent said ACV is Market Value." "Well, then, your agent should pay you the difference."

I know the adjuster guy is going to come out the woodwork and tell me I'm wrong and that ACV isn't "Market Value" but come on.... we all know its just market value lets just admit it.

Make sure your E&O insurance is up to date.

 

[scagnt83]

If one chooses to live in a high risk area. They should absolutely be forced to share in the risk of home repairs.

I say that as someone considering moving to coastal FL.

Harden your home if its high risk.

jmo

 

[scagnt83]

that ACV isn't "Market Value" but come on.... we all know its just market value lets just admit it.

You arent a P&C agent are you?

Im not. And I know that is 100% incorrect.

ACV is FMV.... MINUS depreciation/wear/tear.

So for anything with age on it, you are left paying the difference if you want a new replacement.

ACV is absolutely not market value.... the very definition says its not.

 

[MIGA1626]

You arent a P&C agent are you?

Im not. And I know that is 100% incorrect.

ACV is FMV.... MINUS depreciation/wear/tear.

So for anything with age on it, you are left paying the difference if you want a new replacement.

ACV is absolutely not market value.... the very definition says its not.

You are thinking about this too technically. It says that but in the real world it effectively operates the same way. I have 10 mil in P&C premium.

 

[MIGA1626]

DO YOU NOT KNOW WHO I AM! I AM THE AGNRY KITTY GNNARRR!!

 

[MIGA1626]

All of you all think Insurance is some type of Mathematically formula but it isn't. I have had 100s! of claims on ACV coverage and never once was there a case where the client didn't get what they wanted. Sure we have had some back and forth but everything has worked out and all my clients stay with me and are satisfied. The only E&O claim I have ever had was for freakin replacement cost.

 

[Al3x Lee]

ACV is absolutely not market value.... the very definition says its not.

If we were purely talking about the cost of the structure and not the land value, it technically is the market value.

 

[MIGA1626]

It is called there was a claim.... here comes adjuster that slaps a made up number on a piece of paper... here comes a client who may or may not ask for more... followed by a delay and miscommunication... followed by a random check based off of said random adjuster number. Makes no difference.

 

[adjusterjack]

It is called there was a claim.... here comes adjuster that slaps a made up number on a piece of paper... here comes a client who may or may not ask for more... followed by a delay and miscommunication... followed by a random check based off of said random adjuster number. Makes no difference.

What did a big bad insurance company do to you, personally, that makes you so jaded about the industry in general?