My insurance company agreed to pay for the full amount of my leak damage, around $5K. In theory, I could have the trailer repaired for free and have like-new trailer with a re-done roof, and no worry about winter rains in 2011.
My wife, however, wants to sell the trailer as-is without the repair (we will give full disclosure to the buyer, who is a trailer RV repair guy) add the proceeds to the insurance money, and buy a new or slightly-used, 2010-2012 model of a slightly larger 18-foot trailer.
I know the insurance company probably doesn't care, and this practice is probably common. If the insurance wanted to prevent it, they'd probably pay the repair shop directly. But does this seem okay and ethical?