Insured for $150K with 125K in damage. There aren't three comparable yarders around to get replacement costs from. What do you think they will do and how speedy are they? A couple weeks more of this & I will be under.
I don't know what they will do, but if it's totaled, you don't want the replacement value to come in above ~$180k if your insurance policy has a coinsurance clause.
What if the replacement value is $55k? Don't they have to insure it for it's insured value? I know you can't find a good yarder for under $150k now days.
They don't have to give $150k for a $55k machine. If you're insured for $150k and get into coinsurance issues (usually 20% or more underinsured), they'll pay $75k (50%). The purpose of insurance is to make you whole again. The adjuster's job is to work with you towards that end, and preferably to his benefit. Three comparable machines is a simple way to do it, but not the only way. One alternative that can work/help is a few letters from various dealers (who could be argued to be experts on the area of equipment) stating their opinion on the value of the equipment (and why/how they came to that conclusion, such as experience selling similar equipment). The adjuster isn't likely to simply hand over a check for the policy limit, but it'll let them know you've done your homework to educate yourself and aren't reacting to their offer.
I understand that they don't just hand over a check for $150k but the tough part is there are no yarders like mine out there to compare with. There are yoders (smaller drums) and then larger machines like the 071 or M1 Berger but neither of those are able to drive job to job and to get into one of those is $150k plus. This whole process gives me a headache.
It sounds like you're fouled up either way you go, since you can't replace what you had. Granted, I'd rather be fouled up with the money back for the machine, but unless you're planning to get out of or change the game, wouldn't it make sense to fix the machine since that's doable?
After being down so long we lost our contract for the yarder work. I have to go trucking or add another shovel/processor now as the tower work is gone.
I suspect you will need to get creative about what is a comparable machine. Beat the drums for another that will do about the same job and be ready to offer a workable solution. Mobility, horsepower, reach, drums or anything else might make a comparable sale instead of solely considering make, model, year of manufacture and so on. Insurance company is on the hook for the insured value unless they can prove it was worth less. That isn't likely given there are so few machines available in workable condition. How long it takes to get a check is totally up to the insurance company. What you are going through is an ordeal I wouldn't wish on anyone. Make sure your agent feels some of the heat as well. Many times they have some swing on getting some money sooner rather than later.
I happen to know a fellow up in God's country who is a broker, and would be GLAD to write a letter.........
Two questions spring to mind if the insurance company says it is not economically repairable: - 1. Can the machine be rebuilt if you can get parts for it and are said parts available even 2nd hand..? 2. Will the insurance company allow you to buy the remains of the machine from them once they have settled the claim..? If you can get the machine from the insurance co at a reasonable price and parts are available to rebuild yourself it then that might be a possibility to get you going again.
Thanks guys! 22 years and never had to use insurance for anything. I will have to say that the WCLA was a good broker and the appraiser Mark has been very good to work with.
Godspeed.
I agree with you on the WCLA. I've seen them help resolve a claim or two when the insurance companies brought in unqualified adjusters.