Re: Insurance Boat Value
I have been involved, professionally, with insurance coverage matters, including a fatalx3 boat crash. Here are some facts, not opinion:
1. Every policy is different. Each state has laws about the contents of insurance policies and those laws vary. Each state's case law interpreting insurance contracts can be different. You can never rely on another's experience or policy.
2. Many agents don't know what the policies really say or do. So you can't rely on their interpretation. And legally, it does not matter what they tell you if they are wrong; the contract controls no matter what.
3. Even the lawyers and insurance professionals can read over a policy and think it says one thing, but when they read it more closely and start picking it apart, the clear meaning falls away to confusion or other possible interpretations.
4. On a large enough event, the policy will be picked apart (so don't sweat over a $4,000 boat sinking. the fight will be over a serious accident with injuries).
5. Pay close attention to how your homeowner's insurance and marine insurance compliment or contradict each other. One policy's validity can be affected by the the other's coverage.
6. Value for buy/sell and value for insurance are as different as chalk and cheese.
Also (my informed opinion follows):
The above is especially important if you get an umbrella policy--which you should if you have a decent sized boat, use a boat in popular areas, or use a boat for activities with young people (such as tubing). Have no less than $1 million coverage. To get this, I need $500K in the boat policy before my $2million umbrella applies, so if I thought I was OK with $300K I would be wrong--and exposed.
Focus on the liablity side first, especially for a boat worth less than $10K. That's where it matters.
Despite "agreed value" you just can't go above the realm of reality.
You can insure anything with a large enough premium. Be smart and assess your risk. If you pay $500 to insure a $1,500 trailer, unless it's stolen or totalled every three years you are wasting your money. use that money for fishing instead. No matter how much you love your 20 year old 16' bowrider, and no matter how reliable it is, it has little if any insurable value.
Many marine policies exclude or limit coverage on trailers. So does your auto and homeowner's. Be careful.
If your boat is financed, be careful and don't assume your DEBT is insured unless you have gap coverage.
A $1,500 improvement such as a swim platform does not automatically add $1,500 value to the boat, especially if the boat has any age to it. It might not add any value at all for insurance purposes.
