Ethical question

[paulitzlee2]

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?

[Herb Sutton]

My take is that they are reimbursing you for your loss, it is up to you how you use it.

In a different situation my insurance totaled my trailer and took title and possession of it so they could recover the salvage value.

[HikeSticks]

I don't see the problem. They don't 'give money away'. The insurance company has confirmed and calculated your loss. You will sell the damaged trailer for less than it would be worth if it were not leaking. Too often we hear horror stories of insurance companies offering far less than than the trailer is worth and then take the trailer for 'salvage'. The decision to sell or repair is yours to make.
Barrie

[Doug Arthurs]

I agree with the other replies. You paid your money and bought the insurance. They are just living up to their end of the deal. Plus you will eventually pay them back in higher rates.

[LurkerDan]

Originally Posted by Herb Sutton

My take is that they are reimbursing you for your loss, it is up to you how you use it.

My take as well.