Here’s a quick tip about a coverage that could be a real benefit for your school – Replacement Cost Valuation for school buses.
Let’s say your school has an older bus and it get’s involved in an accident resulting in a total loss. Because of its age, the actual cash value is low, and the claim payout is minimal compared to the high cost of replacing it. After receiving the ACV reimbursement dollars, you have to take extra cash out of your budget to find a replacement bus.
If your insurance policy that offered replacement cost valuation, instead of actual cash value, the insurance company would fully replace your totaled vehicle. Most school insurance policies do not use replacement cost valuation for the auto insurance, and this is something you need to specifically request.
Go to the ‘physical damage’ section of your auto policy declaration pages and see if it says ACV (actual cash valuation) or RCV (replacement cost valuation). If it says ACV, call your insurance carrier and see if they’d be willing to change to RCV. It never hurts to ask and they may do it for cheap.