Insurance Boat Value

[TilliamWe]

Re: Insurance Boat Value

One very simple way to find out......ask them! IMO, they are insuring the boat, the engine is a major part of the boat, they want to ID it for future use in the event the rig was stolen. Also, the serial number tells them the OEM, the HP and it is a way to make sure the boat is properly (or not improprely) powered for it's size, etc. Could be any number of reasons, all of which are legit. But, again, the simple answer to any question you have about the insurance is to ask your agent / insurer!

Enjoy the longggggg weekend boaters!

Exactly

 

[JimS123]

Re: Insurance Boat Value

Agreed coverage doesnt mean squat unless you have an apprasal. If you suffer a total loss they will come and inspect the boat and if it looks like it was a clunker before the accident they will give you book value.

Any company that agrees on a value before getting an apprasal is just taking your money.

Otherwise you could buy a $500 boat, agree on $5000 insurance, then trash it and collect the money.

 

[TilliamWe]

Re: Insurance Boat Value

Agreed coverage doesnt mean squat unless you have an apprasal. If you suffer a total loss they will come and inspect the boat and if it looks like it was a clunker before the accident they will give you book value.

Any company that agrees on a value before getting an apprasal is just taking your money.

Otherwise you could buy a $500 boat, agree on $5000 insurance, then trash it and collect the money.

Once again, if you don't know the facts, please don't state things as such. I know for a FACT that there is 1 insurance company that will do just this.
Insure a boat for whatever you say, and pay that amount if it's damaged beyond repair, and they DO NOT appraise boats beforehand. That's a fact, I used to have their policy, oh and I used to work for them, and settle claims based on that policy.

 

[MTribe08]

Re: Insurance Boat Value

That's a fact, I used to have their policy, oh and I used to work for them, and settle claims based on that policy.

Are you familiar with "mechanical coverage" in a policy? Maybe its different for each company I don't know. But, say I'm on the water, and my impeller goes and overheats the engine and cracks the block or does some other major damage..in you experience will this incident be covered?

I'm in the process of getting a policy for my boat...one policy I"m looking at does not have mechanical coverage and the other one does. Also, one is "agreed value" and the other is "market value."

Thanks

 

[45Auto]

Re: Insurance Boat Value

Agreed coverage doesnt mean squat unless you have an apprasal. If you suffer a total loss they will come and inspect the boat and if it looks like it was a clunker before the accident they will give you book value.

Any company that agrees on a value before getting an apprasal is just taking your money.

Otherwise you could buy a $500 boat, agree on $5000 insurance, then trash it and collect the money.

Once again, if you don't know the facts, please don't state things as such. I know for a FACT that there is 1 insurance company that will do just this.
Insure a boat for whatever you say, and pay that amount if it's damaged beyond repair, and they DO NOT appraise boats beforehand. That's a fact, I used to have their policy, oh and I used to work for them, and settle claims based on that policy.

Got to agree with TilliamWe on this one. Never seen an agreed value policy down here that required an appraisal. I personally know at least a dozen people who lost boats in hurricane Katrina that collected on agreed value policies with my insurance company that never had an appraisal.

Hopefully I'll never have to find out if they're just taking my money, both my boats have agreed value policies and neither has ever been appraised!

 

[JimS123]

Re: Insurance Boat Value

Once again, if you don't know the facts, please don't state things as such. I know for a FACT that there is 1 insurance company that will do just this.
Insure a boat for whatever you say, and pay that amount if it's damaged beyond repair, and they DO NOT appraise boats beforehand. That's a fact, I used to have their policy, oh and I used to work for them, and settle claims based on that policy.

As has been pointed out many times before, since the rules vary by state, due diligence is in order or you may be very disappointed in the end. I guess I should have stated that in my first post because I have no idea what goes on where you are.

However, I DO know what goes on where I am. And here most definately an appraisal is required. And you want to know something else? Added to that, my former insurance company also required a personal inspection of the boat by the insurance agent that writes the policy.

I know all that because I couldn't find an insurance company that would write any of my boats another way. In fact, I have the same issue with my 30 year old classic car that is valued at 10x over NADA book value.

Early in my boating career I suffered a total loss of a 3 year old boat in a car accident. The issue then was that I DIDN'T have an agreed value policy, thus no appraisal. The boat was a custom made wooden speedboat and all I had were receipts for wood, paint, hardware, etc. They offered me $620 and I figured the boat was worth maybe $3000. I had to sue the drunk that hit me, and since he didn't have 2 cents to his name, I got squat!

Lucky you live where you do.

 

[TilliamWe]

Re: Insurance Boat Value

Jim, you should have been more specific in your post, because what you actually said, and what you are explaining are quite different. That's why I said please don't state something as a universal fact, when you don't know it to be one.
MTribe, you question belongs in its own thread. It has also been answered before. I realize searching for it could be cumbersome. But I'll summarize it for you... read your policy or read several policies, they will/can vary on the exact question you asked. Hope that helps.

 

[45Auto]

Re: Insurance Boat Value

However, I DO know what goes on where I am. And here most definately an appraisal is required.

What state or province or country is this in?

 

[JimS123]

Re: Insurance Boat Value

I'll apologize once again. It was not my intention to state a universal fact. I was merely advising the OP that he needs to do his homework and read the policy. There are too many insurance agents that live for commission and don't care about their policyholders.

I'm from the great State of NY. Although we are credited with the 2nd highest taxes in the US, we DO get what we pay for. Trail your boat up here and see what I mean.

My experience is with Nationwide, Allstate, Geico and Progressive. So, its not just one.

I must say that all the bantering here has me quite surprized. If an insurance company lets you tell them what to pay you, you must be paying thru the nose. So, tell me, ballpark, in y'alls neck of the woods what would a $12,000 agreed value policy cost with $300,000 liability, $500 towing and full machinery damage cost, with a $50 deductable?

 

[45Auto]

Re: Insurance Boat Value

Can't match your numbers exactly, but my $35,000 agreed value policy (comprehensive and collision) with $500,000 bodily injury/property damage, $100,000 uninsured boater, $300 towing, roadside assistance, fuel spill liability, full trailer coverage, etc, etc, is $342/year with a $100 deductible.

Not sure how linear it is, but I would guess that a policy with approximately 1/3 of the agreed value and 1/2 the liability coverage would be in the neighborhood of $100/year.

 

[bhammer]

Re: Insurance Boat Value

Can't match your numbers exactly, but my $35,000 agreed value policy (comprehensive and collision) with $500,000 bodily injury/property damage, $100,000 uninsured boater, $300 towing, roadside assistance, fuel spill liability, full trailer coverage, etc, etc, is $342/year with a $100 deductible.

We have very close coverage. I am at $27,000 comprehensive and collision, $500,000 BI/PI, roadside assistance, trailer towing (or flatbed service if requrired), up to 50 miles, hazmat coverage for covered issue and $100 deduct. I am at $278 a year. I have State Farm but have all kinds of discounts that apply as well.

 

[MTribe08]

Re: Insurance Boat Value

J
MTribe, you question belongs in its own thread. It has also been answered before. I realize searching for it could be cumbersome. But I'll summarize it for you... read your policy or read several policies, they will/can vary on the exact question you asked. Hope that helps.

No,but I appreciate you trying. Didn't think the question was deserving of its own thread. I'm quite familiar with the search button, and thought the question might add to the current discussion. I apologize for waisting your time.

 

[45Auto]

Re: Insurance Boat Value

Are you familiar with "mechanical coverage" in a policy? Maybe its different for each company I don't know. But, say I'm on the water, and my impeller goes and overheats the engine and cracks the block or does some other major damage..in you experience will this incident be covered?

Never even thought about mechanical coverage here. You mean you can ignore maintenance and the insurance company replaces stuff for you as it is destroyed? Make a quick run through the low water over the sandbar every couple of years to take out the impellor and get a new engine? Loosen up the oil screw in the outdrive, ride around for a couple of hours and they give you a new one? Maybe just go to WOT in neutral and see how long it takes to throw a rod through the block!

I'd be interested in seeing the actual language of a policy that covers that and how much it is.

My policy specifically excludes wear items and mechanical breakdown. Here's the paragraph under "exclusions" that covers it:

On the other hand, if the damage is due to an accident, it should be covered. The Searay 300 I bought last year has an almost brand new 5.7L port engine and Alpha outdrive. The previous owner hit something that took out the outdrive, and the engine overheated and fried. Progressive replaced the outdrive with a brand new Alpha and the engine with a Mercruiser factory rebuild.

 

[MTribe08]

Re: Insurance Boat Value

Thanks Keith
I will look into the policy and report back as to what "Mechanical coverage' means. I'm sure if something did go wrong, the insurance company is going to want to see records of routine service done to the boat.

My guess is that it pertains to the incident that happened with the PO of your boat..IE;hit a log with the outdrive.

 

[6243]

Re: Insurance Boat Value

I read this thread with a coupled scratches of the head. I am an insurance agen, who specializes in commercial insurance, so I'm no boat insurance expert. However, some insurance concepts are universal.

First, as far as "agreed value" is concerned... the practice is usually employed to determine an appropriate and fair value for something that is not always "easy" to determine. When you and the carrier agree on a value you are both comfortable with the policy can be written. It is your job to determine what you think is a fair value. It is the carriers job to validate that the value is appropriate before agreeing. Different carriers are more or less dilligent up fron in validating your claim of your boats worth. You may very well get a carrier to agree to a value that is higher than the market value, or even replacement value. However, if you insure it for an amount that is significantly higher than its true value, you will most certainly face a battle when you go to collect. The purpose of insurance is to make you whole again (using the concept of indemnification). There aren't any boat or yaght policies that are meant to provide you with a windfall after a loss. Depending on where you live, trying to collect on a policy with a value that is "excesive" would be considered insurance fraud. My advice is to do just what most folks are doing.... try to determine a fair value and insure your boat for that amount.

Second, one poster said many insurance agents don't understand the policies, so don't look there for help. I say, if your agent doesn't understand the policy options, or can't answer your questions to your satisfaction, it's time to get a new agent.

Third, go ahead and read you policy. Insurance policies are very long and generally not written in a user frinedly manner. I definately recommend you read your policy, but then go back to the last paragraph and talk to your agent so you know what your policy says. I tell my commercial clinets to read their policy. However, I've been selling this type of insurance for 25 years and I can tell you that most policies are very complicated and what a consumer thinks a policy says may not be what it actually means.... You aren't an insurance expert. Find someone who is and let them take care of you.

 

[TilliamWe]

Re: Insurance Boat Value

Never even thought about mechanical coverage here. You mean you can ignore maintenance and the insurance company replaces stuff for you as it is destroyed? Make a quick run through the low water over the sandbar every couple of years to take out the impellor and get a new engine? Loosen up the oil screw in the outdrive, ride around for a couple of hours and they give you a new one? Maybe just go to WOT in neutral and see how long it takes to throw a rod through the block!

I'd be interested in seeing the actual language of a policy that covers that and how much it is...

There is no such thing as a "mechanical coverage" policy, of course. I know you know that. The exclusion section you listed is a good one, and that pretty much throws out all things limited to mechanical failure.
It's a claim by claim thing, of course.

Back to the original topic, the value. While our friendly agent above pointed out that insurance is meant to compensate you for what you had (indemnity), there are "yacht" policies out there, sold by companies that will list the Agreed Value at just about whatever number you put on it. At the company I used to work for, we even made a whole business plan (at a training seminar, as a joke) where we were going to by $1000 boats, insure them for $10,000 each, with our own company, and then "accidently" burn them up in a storage building. We were able to show that would would make a huge profit. Yet noone at our company ever changed the underwriting rules for our policy.
So my official advice is, if you can find a company that will agree to insure insure a $5000 boat for $15000 and the premium is not outrageous, DO IT! Just be prepared that if you do $7000 worth of damage to the boat, they won't "total" it, they'll pay the $7000 worth of repair (after all they have up to $15000 to spend) and you'll be left with a junk boat that you now have to part out and dispose of. Small price to pay though, don't you think?
I will gladly provide the name to the company I used to work for in a PM if any of you are serious. They are a good company, it's a good policy, and the premiums are lower than most. They write mostly east of the Mississippi, the Midwest, but not New England, Florida, and most places west of Iowa.