Specialized Insurance for GMC Classics

Many GMC motorhome owners may have an insurance problem and not know it. They do not have replacement cost coverage for their classic motorhomes.

Today, most motorhome policies are written on an actual cash value (ACV) basis. However, the NADA book value for 1973 to 1978 GMC motorhomes shows the "used retail" or ACV ranging from a low of $11,210 on 1973 models, to a high of $22,260 on 1978 models. If your GMC motorhome were totally destroyed, would you be satisfied with book value?

Many GMC motorhome owners have renovated and improved their motorhomes. As a result, the current replacement cost may exceed the vehicle's original cost when it was new. If you have a total loss of any kind, an insurance adjuster will more than likely determine the ACV of your motorhome at the time of the claim by the only source available-the depreciated ACV in the NADA book. As an insured, how would you prove the value of your GMC motorhome after it has been stolen or completely destroyed by fire? Remember, as an insured, it is your obligation to prove your loss to the insurance company.

Before you lose any sleep over this potential problem, ask your insurance agent if your insurance company will accept a current replacement cost appraisal to establish ACV. If the answer is yes, you should be able to protect yourself from the depreciated ACV shown in the NADA book.

Unfortunately, many insurance companies will answer no, and go strictly by the book in the event of a total loss. Those companies that answer yes will generally ask you for an annual or biennial appraisal showing the cost to replace your motorhome less physical depreciation. Your annual premium will then be calculated on that value. In short, if your insurance company has a $40,000 replacement cost appraisal on file and your motorhome is stolen or otherwise totally destroyed, you will get $40,000, not something between $11,210 and $22,260.

A professional appraisal should take precedence over any NADA book value, and could be well worth the cost and periodic inconvenience when you consider the amount of money you could lose if you have no documentation of the cost to replace your motorhome. Wes Caughlan, president of Cinnabar Engineering, Inc., is a registered professional engineer and his expert testimony on motorhome value has been accepted in court in a number of states. Cinnabar Engineering, Inc. provides written replacement cost appraisals at no charge on GMC motorhomes that have undergone significant renovation at the company's Sandusky, Michigan facility. Other coach renovation companies provide a similar service.

Check with your insurance company to find out what it will accept as a statement of ACV for your GMC motorhome. If the company will not accept a professional appraisal based on the cost to replace your motorhome, you should be looking for another insurance company.