Insurance company and actual cash value

[DavidM]

A customer ran into one of our stainless steel vac islands and hit it pretty hard. Their insurance company doesn't want to pay replacement cost, they are offering ACV less depreciation which they calculate at 20% (it was about 6 years old). So they would pay us 80% of the cost of a new one.

Is this the best they can do? What are my options? I don't like the idea of paying cash out of my pocket because a customer damaged my property.

 

[pitzerwm]

Your policy is either "replacement cost" or "depreciated value". I always pay for "replacement". Its in your policy.

 

[DavidM]

Your policy is either "replacement cost" or "depreciated value". I always pay for "replacement". Its in your policy.

Our policy is replacement cost but this is being covered by the insurance company of the customer who did the damage. I guess I could go to my insurance company for the difference but I suspect the deductible and possible increase in premiums would make that a losing deal.

 

[Waxman]

Find a few options of replacement, high price, mid and low price.

get 80% of high priced. buy low priced. break even hopefully.

what about getting extra $ for removal/dsiposal of old and installation of new.

i'd have my ins. co. go to bat for me w/other guy's company. whay not? that's what you pay the premiums for, imo; service.

 

[rph9168]

I would avoid involving your insurance company if at all possible. Even if they don' end up paying a dime it goes on your record as a claim. While one would probably not have any effect it could if you have others along with it. I think you might be able to go to small claims court and get the rest from the driver unless they make you sign a settlement release to receive the insurance payment.

 

[Jimmy Buffett]

I had 2 instances of people opening their door inside my auto last year and causing damage. 1 guy had 21st century, who paid the full amount and the other had allstate who depreciated the parts. Maybe you should have a tech look at it, maybe there is more damage than you noticed at first ...

 

[dogwasher]

Don't they have to replace it? 80% will not replace it! Tell "them" to find you a nice used one then?

 

[ted mcmeekin]

We had small claim last year--first in 10 years. Our new premium just arrived--up 23 %. Checked around and found same coverage for 15 % less with well known company.

Ted

 

[PaulLovesJamie]

Dont forget installation cost.
I'd get a quote to remove the damaged vac, install the new one, & any cleanup & repair of vac island. Add in lost revenue due to the equip being out of service. Send them that bill - that is what it is really costing you, thats what you should get.

 

[Indiana Wash]

Depending on the state, they will have to pay replacement cost if you actually replace it, especially since their insured is the party at fault. If you are just going to patch up the island, then 80% isn't bad. If you are going to replace it, then submit a bill to them for actual replacement cost of the item they damaged. Of course, they would not pay replacement cost of the vac on the island if their insured did not damage that.

 

[washme1]

The company representing the driver is required to make you "whole." I would tell the adjuster that you will take their insured (the driver) to small claims court if the company is not willing to be reasonable. They do not want to deal with an upset insured or take the time to go to court for a relatively small claim. The claims adjuster wants something to put in his file to justify the settlement he agrees to so give him documentation to support the settlement you are entitled to.

 

[pitzerwm]

Like others said "they" have to make you whole. And pay for down time. Just tell them that when they make you whole, you will sign off. Let them know that you have no fear of going into small claims court. Cost you almost nothing, and you sue the guy, which means that he can't take their lawyer with him. Most states don't allow a lawyer in small claims. Normally, you wouldn't get a new one, but with a business, there is the remove & replace cost and with the loss of income, they should buy you a new one ASAP. How much money are we talking about.

 

[DavidM]

This has been resolved. I kept pushing back, telling them it wasn't acceptable that I need to pay money out of my pocket to repair something that their insured damaged beyond repair. They finally agreed to pay the full amount. We did have to sign a release from future liability.

David