Insurance Implications for Aquarists

[cromag27]

@cromag27 Thank you for that link! I never even knew I could get a copy of that. Very good information!

no problem!

anyone quoting for new auto/mc/boat/rv insurance should get an updated copy of their mvr and a clue report. the agent is going to be asking about your driving history. the more honest you are upfront, the lower your premium can be. this is where the 'liar, liar' up-charge comes into play. i'm not sure if every insurance copy operates this way, but i know the majority of the large ones do. i work for one of the top three.

 

[MnFish1]

Some insurance agents are captive, in that they can only sell that company's coverage. Some agents are independent and may represent several companies. Most independent property and casualty agents usually have a handful of carriers they write business with. There are multiple reasons for this: some carriers have certain niches they are better in than other companies, some companies may not grant an agency / agent an appointment unless they are doing so much business or other criteria, and there are only so many products an agent can keep up with effectively. An independent agent may be able to find a better deal with one of his carriers than a captive agent but not necessarily. It really depends on the company, the coverage, and the underwriting. Some companies are moving to an online model and eliminating agents. The savings potential for the company and possibly the client can be significant, as there is less overhead costs. However, there are downsides to this kind of model as well.

In regards to calling in about a possible claim, I think it may not be clear what actually happens in the property and casualty world and how this can cause problems. If you call in to your agent or insurance home office and "inquire" about your policy, it may be considered a claim or at least documented (even if you don't have a claim). These queries can lead to an insurance company increasing your rates or even dropping you. With life insurance and some other types of policies, this is not an issue because of the nature of the policy or how underwriting or pricing is handled (or regulated). With property and casualty, though, some companies treat all inquiries as reportable because from their perspective, you typically don't call about hypothetical situations. Thus, you may be flagged and deemed a higher risk leading to increased premiums. I have a good relationship with my agent, so I'm able to ask him questions without fear of him reporting that to the insurance company. But I would be very cautious about calling a home office number to inquire about a policy provision unless I was prepared to file a claim or I knew exactly how they handle general inquiries.

Thanks a lot - this makes sense - and is the same as what you can find on the internet. I never call into my insurance company - always the agent - who says - do or dont file a claim - (hopefully based on the best recommendation for me - but im assuming also for him)...

 

[MnFish1]

no problem!

anyone quoting for new auto/mc/boat/rv insurance should get an updated copy of their mvr and a clue report. the agent is going to be asking about your driving history. the more honest you are upfront, the lower your premium can be. this is where the 'liar, liar' up-charge comes into play. i'm not sure if every insurance copy operates this way, but i know the majority of the large ones do. i work for one of the top three.

The top three 'what'. Because we're talking about aquarium damage - not RV's etc. You have an agenda as an employee of an insurance company - you criticize anyone that says you might be wrong (have an agenda). Disclose.

 

[vetteguy53081]

Really haven't seen anyone post reliable or suggested insurance companies who provide some level of coverage for tank systems

 

[cromag27]

Really haven't seen anyone post reliable or suggested insurance companies who provide some level of coverage for tank systems

https://www.reef2reef.com/threads/insurance-implications-for-aquarists.522574/page-2#post-5465011

 

[G_Sanab922]

Really haven't seen anyone post reliable or suggested insurance companies who provide some level of coverage for tank systems

This is very difficult to do. Every state has different regulations, different companies, different policy guidelines and different coverage that can be added. This is why this type of discussion is very difficult on here. Everyone is from different states which have different rules. As a licensed professional from Florida I can only tell you what Florida policies can provide, which is what I did on one of my previous post.

You'd need to call your agent and tell them you are looking for coverage on your tank system. They should speak the underwriters they work with to see what type of policy you can get, this will probably be in the surplus lines market. This means that they have minimum premiums. If you can find coverage for what you want, then the next question is how much will it be and are you willing to pay that?

 

[powers2001]

Really haven't seen anyone post reliable or suggested insurance companies who provide some level of coverage for tank systems

https://www.reef2reef.com/threads/p..._1&utm_medium=email&utm_campaign=July_13_2018

 

[mwilk19]

i’m a licensed insurance agent and i can guarantee you one thing - insurance companies evaluate risk on a case by case basis if a claim is filed. insurance companies will pay as little money as they can and they will utilize loopholes to their advantage. regardless of what you’re told or what you see in writing, you’re at the mercy of the claims investigators. they make the final decision and you most likely will not be 100% satisfied with the results. this subject is way too broad for a beneficial article.

What you're saying is, plan on getting screwed by your insurance company because you probably will?

 

[MnFish1]

What you're saying is, plan on getting screwed by your insurance company because you probably will?

He is saying plan on getting screwed by the insurance company for which he works..... Everyone is different

 

[danielb333]

Why the arguing. I read this thread in hopes of learning about insurance and tanks. I did research in this from prior threads.

Be happy everyone.

That said. I had progressive up until last month because I asked about my reef tank and was told not covered and can’t be covered. I switched to farmers after many lengthy conversations. I will confirm in an email one more time...you know. For “paper” trail

I switched to Farmers as well since they were the only one who claimed water damage was covered if it broke.

 

[Chukthunder]

I was told to insure a waterbed, never needed it but it made my land lord happier.

 

[lapin]

And lets not forget RCMV.
Just because it costs XXXX amount new does not mean anything that is damaged, will be replaced at the cost it was new, unless you are able to pay for that type of coverage.

 

[cromag27]

What you're saying is, plan on getting screwed by your insurance company because you probably will?

not at all.

most insured are going to think they’re getting screwed because they don’t understand how insurance works. in most cases they are just uneducated and they are actually getting what they pay for. most do not understand how assignment of fault works or what coverages they even have.

i talk to people all day long and it’s really scary that i have to educate them so much.

 

[CherBear811]

Wait, so regardless of having it in writing, they still pay less than they have to? How is that legal??? That's the point of a contract. Crazy.

 

[ESH]

Wait, so regardless of having it in writing, they still pay less than they have to? How is that legal??? That's the point of a contract. Crazy.

Every claim is situationally dependent so it can be challenging to compare one claim to another. Insurance companies are obligated to pay you what is owed to you, and not a dollar more. The intent is to get you to your pre loss conditions. Exclusions in your contract can prevent you from getting completely back. Many insurance policies will pay out what’s called replacement cost value , which ironically could actually make you better off in instances where your damaged personal item no longer exists, and some only pay actual cash value of an item. Actual cash value takes into consideration deprecation. Replacement cost value is what it would cost you to replace your item today. For example, If you bought a 40” flat screen TV 5 years ago it might have cost you in the range of $1000-$2000. If you got the same thing today it might only cost $400-$500, if that. You might also have an old TV that is no longer manufactured, and so you might now get that $400 flat screen TV. So, it’s important To make sure to ask your rep for an explanation of your coverages, read through the contract, and endorsements (endorsements will modify your contract) . What people often over look when purchasing insurance is that they get so focused on the price ( who can blame blame them, nearly all marketing advertises savings to get your attention)of their insurance and don’t typically look through and fully understand what coverage they have actually purchased. A good sales rep will talk with you to understand all your risks, point out your risks, educate you on those risks, and then work with you to find the optimum coverage that is within your budget. The most expensive policy isn’t always the best, the least expensive one may not have all the coverages that you need.

 

[cromag27]

Every claim is situationally dependent so it can be challenging to compare one claim to another. Insurance companies are obligated to pay you what is owed to you, and not a dollar more. The intent is to get you to your pre loss conditions. Exclusions in your contract can prevent you from getting completely back. Many insurance policies will pay out what’s called replacement cost value , which ironically could actually make you better off in instances where your damaged personal item no longer exists, and some only pay actual cash value of an item. Actual cash value takes into consideration deprecation. Replacement cost value is what it would cost you to replace your item today. For example, If you bought a 40” flat screen TV 5 years ago it might have cost you in the range of $1000-$2000. If you got the same thing today it might only cost $400-$500, if that. You might also have an old TV that is no longer manufactured, and so you might now get that $400 flat screen TV. So, it’s important To make sure to ask your rep for an explanation of your coverages, read through the contract, and endorsements (endorsements will modify your contract) . What people often over look when purchasing insurance is that they get so focused on the price ( who can blame blame them, nearly all marketing advertises savings to get your attention)of their insurance and don’t typically look through and fully understand what coverage they have actually purchased. A good sales rep will talk with you to understand all your risks, point out your risks, educate you on those risks, and then work with you to find the optimum coverage that is within your budget. The most expensive policy isn’t always the best, the least expensive one may not have all the coverages that you need.

there are actually several types of loss valuation:

replacement value - the cost to replace property with property of like kind and quality, at current pricing, without a deduction for depreciation. some policies require the covered property to be insured to a certain percentage of its replacement value.

actual cash value (acv) - the cost to repair or replace property at its replacement value, minus depreciation.

agreed value - the insurance company and the insured agree to a specific value of insured property before the policy is issued. if a total loss occurs, the insurer will pay the agreed value amount.

stated value - a valuation method that states the value of property on the declarations page, but provides for the insurer to pay the lesser of the stated value or acv following a loss.

valued policy - a policy that states the value of property as the amount shown on the declarations pay and will pay that full face value in a total loss, regardless of acv.

functional replacement value - the cost to replace property with other property that performs the same function with similar efficiency, although the replacement property is not identical to the property being replaced.

market value - the price a willing buyer would pay for the property purchased from a willing seller.


it is important to note that not all lines of insurance will have all options.

 

[Ezduzt_nyc]

Thank you so much for this article! The timing was perfect for me, as I just got my tank delivered today. This gave me the info to know the correct questions to ask. More importantly, it gave me knowledge to understand what my agent's answers meant!