Grain Bin Value-- Totaled in vehicle accident

My 1400 bushel grain bin was totaled by a drunk driver last week and his insurance company is offering only $500 for it. I said it should be closer to replacement cost, but he said because it was not being used for grain storage, that he couldn't offer that. What do you fellows think? Even though it was almost 50 years old, it was in excellent condition. I think it was made by B&B.

Just tell them you will make them a deal. Just have them replace it with "like kind", do all the labor, and clean up the mess of the old one and you will call it even. It was doing its job before their driver ruined it, and you just want it back like it was. Nothing extra, nothing better, nothing more, just restore you to the same condition you were prior to the damage.

Then tell them you will take them to small claims court. You can represent yourself, and it wont cost you but about $50 filling fee. Some areas do have a limit or maybe a minimum for small claims court, check it out at your county courthouse.

Gene

Sounds like an insurance guy trying to weasel out of paying. Press the issue.

Get a price on a replacement from a bin dealer. I deal in Brock bins. Those size bins are still available. Ask dealer for a quote on a used bin of the same specs. Likely there will not be any available. If used is not available....id say they have to replace with a new one!

GeneMo has it exactly. You should be held harmless, suffer no financial or time damage at all.

If not used for grain storage what was it used for? Hopefully it had a significant use else you may end up with a payment for destroyed yard art.

First the one thing insurance companies like almost as much as collecting premiums is to deny or shave claims. If the driver that they insured took it out while drunk they need to make it right with you. Yes they're trying to low-ball you, that's the way the game works, if 2% accept the low-ball claim they just saved money. Snakes bite and insurance companies shave claims, if you handle snakes expect to get bitten a time or two, if you're dealing with an insurance company expect to play the game or not get what you deserve.

Value, most obvious question to ask are you involved in any kind of farming? If so what is you book value of this asset? Remember if you collect more than it's on your books for you might have to pay capital gains tax on money above book value. How does your state do property taxes, is the bin a listed item on your property taxes, if so for how much?

Is the bin insured under your property insurance? If the drunk's insurance company doesn't want to get right with you in it turn it in to YOUR insurance company. They might actually treat you decent on this, as they know they'll recover all expenses from the drunk's company (only glitch might be if you both have the same company). I've found insurance companies that are normally PITA to deal with get polite and courteous when adjusting a claim some one else is paying for. I think they figure they'll treat you nice on a competitor's dime to make brownie points with you that they'll call in when they have to pay a claim to you on their money.

In many states the drunk will need to get a release from the owner of any property damaged in the accident as part of his plea agreement or sentence. You signature becomes a "No Tickey no shirt" type situation for him. If he hasn't had previous DWIs he might need the release to stay out of jail, get into a program or keep/get an occupational license. In some states (like Wisconsin)the state or District Attorney will send you a release to sign.

Negotiation tactics- tell the it's one your farm books for what you want for it. (yes I know that's lying, but it's to an insurance adjuster so it doesn't count) Do you have a mortgage on the property? Explain to them the bin had a lien on it (mortgage) and you'll need XXX to pay on the loan to remove the bin from the mortgage documents. Heck I'm guessing if it had a slab under it it'll cost you more than $500 to get the slab ripped up, carted away and landscaping restored. Mention that if you'd really like the bin to go away. If you're okay with the bin gone price the removal and site restoration, also price repair with a used or new parts, and replacing the bin with a new or used bin, get everything including transport, site work (removing old bin to install replacement bin) assembly and dis-assembly (for a used one) and if it has a fan, lights or an outlet on it, price the electrical work to restore what you had before it got wrecked.

If the insurance company feels it worth their while to go to court they will move it to General Civil so their attorney can represent them. At least in Michigan. It gets fun after that.

The insurance company will want to depreciate the structure also.

The company you are dealing with now is just trying to see how cheap they can get by, if you refuse to settle they will come around sooner or later. Talk to your homeowners/property insurance agent, they can and usually will take up the case for you and either go ahead and make it right and then squeeze theirs back out of the other insurance company or help you to get a fair deal from the other company.

OK, what I think, as a former adjuster, is that the drivers insurance company, if he has one, owes you a replacement grain bin. That's no if and or buts. Now that may vary state to state but in most states they owe you a grain bin at least in as good of shape as the old one. They also have to pay to have the old one cleaned up and hauled off and the new one installed. That falls under the mandatory property damage part of auto insurance. Now for the price of a new bin that size they are not going to want to go to court. Just tell the adjuster that you are going to talk to YOUR not a, attorney. Also tell him you are calling your state insurance commission if you are not satisfied. Now if it's your property insurance read your policy. See what is covered and any exclusions. If you don't understand something consult an attorney.

Rick

Not sure on this one, but don't you have to file in the county the headquarters of the insurance copy is located?

Insurance companies are for profit businesses. The first offer is typically a "low ball" offer. Take a car for example. Your car gets hit and is undriveable. The insurance company who is at fault comes forward wanting to pay you for damages and is ready to write a check - almost on the spot. You need a car. You take the check - they save money. It is called "loss prevention". The adjusters practice "loss prevention" all of the time. Some companies I am sure are easier to work with and are fair. Others are the "real deal"!!! The longer you say NO and the longer the paperwork sits on the edge of someones desk the more you will get. All of this is too a point although. Lets face it - a 1400 bushel bin isn't too practical today so it must be fairly old???? Should the company pay for a new bin???? I guess it depends on how good yours was and if you really want to rebuild a new one. If it was in great shape and you use it to store grain replacement cost seems fair. If you really don't need it for grain and it was in a poorer state - certainly something much less. What would you be happy with to walk away with in cash???? Saying NO and building a case for what it was worth will improve your odds of being fairly compensated. Goodluck.

Lots of good info here, I appreciate it. The bin is in Wisconsin, it was not insured on the farm policy. After all, what could happen to a grain bin? No trees nearby and it was 20 feet from the road! LOL!

This guy also took out a wire Rod-Lok 800 bushel corn crib that was next to the grain bin. Don't think they even make those any more. I think they offered $200 for that.

Usually law suits are filed in the county or nearest courthouse to where the incident happened. A couple years ago on here was a post about a guy selling an old truck, that he clearly stated wasn't road worthy, to some people that decided to drive it home anyway. It broke down a short ways into the trip and they tried to sue him...in a courthouse close to them and about 2 hours from him if I recall. They had a pre-trial meeting with a judge. They made their argument, then the judge asked for his side of the story. He pulled out a transcript that stated any court action has to filed in the county the incident happened. The judge turned to them and asked if they fully comprehend what just happened. I'm not sure if the judge offered them some cheese to go with their whine or not. LoL

bottom line, they should owe you what it would cost to replace now.

(quoted from post at 20:44:44 06/09/14) Insurance companies are for profit businesses. The first offer is typically a "low ball" offer. Take a car for example. Your car gets hit and is undriveable. The insurance company who is at fault comes forward wanting to pay you for damages and is ready to write a check - almost on the spot. You need a car. You take the check - they save money. It is called "loss prevention". The adjusters practice "loss prevention" all of the time. Some companies I am sure are easier to work with and are fair. Others are the "real deal"!!! The longer you say NO and the longer the paperwork sits on the edge of someones desk the more you will get. All of this is too a point although. Lets face it - a 1400 bushel bin isn't too practical today so it must be fairly old???? Should the company pay for a new bin???? I guess it depends on how good yours was and if you really want to rebuild a new one. If it was in great shape and you use it to store grain replacement cost seems fair. If you really don't need it for grain and it was in a poorer state - certainly something much less. What would you be happy with to walk away with in cash???? Saying NO and building a case for what it was worth will improve your odds of being fairly compensated. Goodluck.

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Andy not entirely true. Some states it's illegal to make a lowball offer for an insurance settlement. That's the law here in MN.

For the OP, if need be sue. I'm not big on giving that advice. But most often for a low buck claim like yours the insurance company will settle long before it gets into a court room. They don't want the bad press especially when it's going to make them look really bad. Plus it's going to cost them more money fighting it than just paying what is due. As an adjuster I would have at least set down with you and tried to negotiate. Bottom line they owe you a grain bin and corn crib in the same condition as the ones destroyed, removal of the old ones and repairs to the land if say there are any ruts that now need to be filled in and reseeded. Bet if you hired removal (and you should get estimates) of the bin and crib plus clean up it will be more than what he offered for the loss. If an adjuster tries something like that with me I will really bend over backwards to stick it to them. Just maybe with the next guy he will try to be fair.

For what it's worth, adjusters often forget they are the ones who are supposed to bring you back to where you were before the loss. They deal with so many people trying to scam the insurance company it's not funny. When I first started out I dealt with the aftermath of some really bad storms. In my first 10 days fully 1/2 of the claims I worked on were fraudulent claims. Anything from claiming old school electronics as new with inflated value to an arson fire from a club owner who was going broke. An adjuster can become jaded very fast. They start looking at anyone filling a claim as a bad guy trying to rip off the insurance company. Most often the insurance companies are not going to prosecute a small time fraud. That gives them bad press. They inform the claimant that they have proof of fraud and are just denying the claim. That too drives an adjuster up the wall. You worked hard to try to be fair to both the insured and the company. You found evidence of fraud and the company lets it go.

Rick

I agree with filing in small claims court. It will cost them way too much to send an attorney to your local court.

They should put one on your property, if you use it.

If you just want cash, then their offer probably isn't that far off. I bought a good used one that size for $40 a decade ago.

Mixed feelings on how that all goes, you should be made whole, but you shouldn't profit from the deal, if it was an old structure you weren't using I don't think you get a check for full new cost..... On the other hand they need to do something....

Paul

Just tell them you want the old one fixed if they won't replace it.

So if you had parked a car there that you weren't using at the time, and they totalled that, does the value of the car go down because it wasnt being used? Faulty logic. If the bin was in good, usable shape, why does it matter if it was being used at the time of the accident? The insurance company is lucky that it WASNT being used, or they would be paying the cost of its contents as well.

Keep the pressure on em. I'd just tell them to go ahead and replace them both, and make sure they repair your ground from the accident and the construction of your new structures.

gGood advice however who and or what is the OP.
Sorry but I just dont understand using just letters
which can mean anything.

Good advice, however who and or what is the OP. Sorry but I just don't understand using just letters which can mean anything.

Good point but I guess the real question is, COULD it be used as a grain bin or was it full of holes and leaks?

If it was sitting empty just because you hadn't had a need for a small bin the last couple years - they can't use that as a reason to devalue your property. If it was sitting empty because it couldn't be used as a grain bin due to general condition then the insurance campany has a case.

Make them replace it.. Don't waste too much time before you start firing off lawyer's letters either...

Rod

The bin was in excellent useable condition. The land has been in CRP so didn"t need to use it for grain storage.