Contents claims present adjusters and insurance carriers with unique challenges on a daily basis. It's challenging enough to assess the value of the bewildering array of possessions contained in a home that has suffered a large loss due to fire or a flood, for example, let alone a claim that comes literally out of the blue -- as in the subject of this edition of Contents Claims Solved.
Who knew that you could own and operate a radio-controlled, military-style aircraft (SU-35), measuring nine-and-half feet long and fully accessorized with retractable landing gear, twin jet engines, and fully flight capable at speeds approaching 300 miles per hour? Our fearless claim adjuster found that out after a model plane enthusiast crashed his radio-controlled jet and issued a claim of nearly $31,000.
Upon inspecting the remnants of the hobbyist's projectile, the claim adjuster called on the services of a specialist contents claims firm to research and find a retail replacement value for the scale model.
Case Background
The investigation began online by researching hobbyist web sites where aficionados of radio-controlled model planes exhibited their prized possessions. An actual pre-loss photograph of the insured's plane was available on one of the sites, showing that the plane had everything on it short of live armaments.
Starting here and equipped with a list of required parts, the contents claims specialist determined that the basic kit for the plane was manufactured in France. Most of the other parts and accessories were specially ordered and available from only one source. The challenge was to replace the insured's treasured model jet and all of its impressive accessories while also controlling costs to the benefit of the insured and the carrier.
The Result
Further investigation revealed potential cost savings, including the knowledge that it was possible to acquire the basic plane kit in North America through a Canadian distributor and have it assembled locally, rather than in France. The special order accessories were shipped, assembled, and added to the model plane.
Total replacement cost after assembly in North America came to $25,000, a significant cost savings on the base assessment of nearly $31,000, which would have been inflated if the plane had been fully assembled in France and then shipped overseas. Having the plane assembled close to the insured also accelerated the replacement process, much to the satisfaction of the model plane hobbyist who was eager to get his wings back.
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