Risk & Business Magazine Gifford Associates Spring 2017 | Page 27

TOYS
comprehensive coverage left on the policy,
there is coverage for the ’Vette itself, but
there is no coverage for the liability claim
that may result when the thief causes
a serious injury or death joyriding your
baby. The solution is to disable it. Hide
the keys, remove the battery and plugs,
put it up on safe and tested jackstands,
put a stabilizer in the gas tank, fog the
motor. And if I have not mentioned it
before, disable it.
For boats and snowmobiles, at the end
of their respective seasons, remove one
or both of the wheels on their trailers,
put tongue locks on them, and chain
the entire unit to something that will
not move. Make it hard for a thief to just
snatch and grab.
Talking about valuation for these toys
can be contentious. If you have ever had
a car accident, you know that what the
insurance adjuster values your family
car at is often not close to what you paid
for it. Most of the things we have talked
about here are insured on an actual cash
value basis and not replacement cost.
That may be Latin to you if you are not
in the insurance business, so here is the
translation: when a loss occurs, insurers
will give you a depreciated value for
vehicles based on what they are worth
at the time of the accident, not when
they were new. If you bought a new car
in 2010, you know that by 2017 it has
depreciated to a point that insuring
it for collision and comprehensive
events may not be worth your while.
Most automobile policies will offer
depreciation protection for two years if
you buy new, but you have to be aware.
Talk to your broker about when your new
vehicle can be insured with depreciation
protection and when that protection no
longer applies.
Some vehicles like classic cars, rare bikes,
and some boats can be insured on an
appraised value basis, which will at least
recognize that depreciating a 50-year old,
rebuilt classic is worth $0 if on an Actual
Cash Value policy but could be insured
for $45,000 if appraised at that limit. But
you have to get the appraisal done at your
cost and with certain regularity to meet
underwriting requirements.
Insurance is part managing the risks
and part transferring those risks to an
insurer. That applies to your toys as much
as anything else you own or do. It makes
good sense to know how to safely operate
your toys, protect and maintain them,
and have them properly insured. Summer
is coming — be safe and enjoy the road
you drive, the trail you ride, or the waters
you sail. +
To celebrate Canada’s 150 th
anniversary, we’re partnering
with our brokers to give
$1 million to better our
communities in 150 ways.
As a modern mutual company, we’re built on
the idea of people helping people. We have a
long history of working together with our broker
partners to strengthen our communities across
the country. This