I'm no tax attorney, but my recollection of the tax loss provisions of the IRS:
1) Don't see how the (apologize for the terminology in advance) "poor choice" of service company contract will qualify as a loss with GoRV.
2) The dollar loss as a % of income before any deduction kicks in is a pretty stiff %of income.
This is just IMHO, so before you et your hopes up about some measure of recovery, probably need to pull up loss definitions from IRS.org.
And, sorry to all those out there for loss with GoRV. Insurance, whether by choice through a service contract for peace of mind, or mandatory for loss because of lien holder, is a gamble that favors the insurer. If the insurer didn't have the odds, you wouldn't see those tall buildings.
With all due respect to the Moderator, folks need to know the downside of service contracts, as well as the pluses. GoRV is an example of the downside that ranges from non-responsivenes to virtual "ponzi" schemes that end up with companies like GoRV going bankrupt. And built into that $ equation is a 50% commission for the service contract seller (read the November issue of the RV Trade association newsletter for Florida and "how to generate additional revenue" for RV dealerships that can be found on the Florida SuperRV Show website).
Got to go into these things with eyes wide open, because GoRVs are out there and interested in your $s. AIS