depreciation in the event of insurance claim?

[TilliamWe]

Re: depreciation in the event of insurance claim?

Phil, you ever heard of a Yacht Policy? It is NOT replacement cost, which is what you are describing. They are true agreed value (for total losses) policies, with NO depreciation for any repairs or replacement of any components. Several companies sell them, and I settled many a claim for one company that paid them. So they do exist, you just have to know the right questions to ask, and how to read a policy.


Navy, you have an interesting hybrid policy there. My Yacht Policy had no depreciation on anything with Agreed Value total loss coverage.

 

[scoutabout]

Re: depreciation in the event of insurance claim?

My experience confused me.

We bought a 1992 SeaRay in 1996 for $10,000. Ten years later in 2006 it sank at our dock in a storm. The quote to repair it from the local marina was $7000 and the insurance co subsequently said it wasn't worth repairing. They then, however, wrote us a cheque for $7000 AND gave us the hull for free (which I later sold for $1000). I suspose I should go read that policy again.

 

[TilliamWe]

Re: depreciation in the event of insurance claim?

TilliamWe


My boat is trailered and the outdrive still looks like NEW and works like new with reseals ,trim hoses and any other maintenance necessary

I don't feel at 16 years IF i have and accidence it is suddenly not worth the cost of and = condition replacement unit

Looks like new and being new are two totally different things. Your 16 year old drive could grenade tomorrow.
But in regards to items like seals and maintenance items, if you have receipts, an adjuster will consider them when adjusting for depreciation, if you have an ACV policy.

 

[sportsmanphil]

Re: depreciation in the event of insurance claim?

Phil, you ever heard of a Yacht Policy? It is NOT replacement cost, which is what you are describing. They are true agreed value (for total losses) policies, with NO depreciation for any repairs or replacement of any components. Several companies sell them, and I settled many a claim for one company that paid them. So they do exist, you just have to know the right questions to ask, and how to read a policy.


Navy, you have an interesting hybrid policy there. My Yacht Policy had no depreciation on anything with Agreed Value total loss coverage.

All states are different. My experience is in NC, VA and all gulf states (hurricane prone states). I also spend a bit of time in tornado alley and spend time up north during bad winters. When I sign up for CAT duty I brush up on the policy for those states and get to work. During CAT duty I usually dont see the outcome so any fine tuning is done months after I finish the claim and turn them in.

 

[Navy Jr.]

Re: depreciation in the event of insurance claim?

Navy, you have an interesting hybrid policy there. My Yacht Policy had no depreciation on anything with Agreed Value total loss coverage.

As others have said, it appears policy differences might be related to which state one resides. I'm in Minnesota. Somewhere I read that we have the highest boat ownership rate in the nation. I read the entire policy when it arrived and was not surprised by the depreciable items it listed. I was, however, pleasantly surprised by the rather low premium. Under $300/year for over $30k coverage from a major insurance company. Probably because we also have our home and vehicles covered by them, too.

 

[RickV1955]

Re: depreciation in the event of insurance claim?

I just bought a 2005 Proline Center Console with a 115 Mercury Outboard...and just insured it (Florida).

The insurance agent gave me a choice of either:
ACV - actual cash value or
Total Value (actual purchase price).

I chose the total value (purchase price), the premium not being substantially more than the ACV price.
This policy covers me for exactly what I paid for the boat (covering almost everything, including theft, vandalism, operational damage, and even potential storm/hurricane damage).

The policy is in effect for one year.......I assume, however, that at some point, the total amount I would be able to insure this boat for, would reflect what a reasonable current value of the boat would be........
(I was lucky enough to purchase this boat for less than half the "book value")

For example, I sure you can not insure a 10-15 year old boat so that you could replace it with a new one -

And, it's certainly good advice to actually READ the policy!!

Rick

 

[jkust]

Re: depreciation in the event of insurance claim?

As others have said, it appears policy differences might be related to which state one resides. I'm in Minnesota. Somewhere I read that we have the highest boat ownership rate in the nation. I read the entire policy when it arrived and was not surprised by the depreciable items it listed. I was, however, pleasantly surprised by the rather low premium. Under $300/year for over $30k coverage from a major insurance company. Probably because we also have our home and vehicles covered by them, too.

I am in MN also. The reasons for the cheap coverage are similar to why coverage for my snowmobiles is so cheap. In MN the boating and sledding seasons are very short and although you pay premium for the whole year, Liability wise not much happens in the off season. Your boat or sleds could burn but there is a good chance you won't run your snowmobile into someone in July and of course you could trailer your boat to a coastal state to extend the season but again, not likely. My insurance company explained that the premiums are set (earned i believe) as if you are looking at a bell curve with the on season at the top of the curve. I would bet a boating policy in Florida costs a lot more than here in MN. I don't recall what I pay for my Agreed Value policy for my Chaparral but it wasn't very much compared to a simillarly priced car with an ACV basis. Considering I hardly rode my snowmobiles this year due to huge lack of snow in my area, my insurance company made out well.