Insurance

Linecapt · **Posted:** Fri Nov 14, 2014 8:39 pm

While reading a recent Boating magazine (Oct 2014), there was an article on boat insurance, specifically, do you insure for 'Agreed value' or 'Actual Cash Value'. So my question to the membership is, which option do you choose? Obviously there would be a price difference in the two, but which option is safer, and why is there even a choice, as I don't have a choice for my vehicles. This is for my pristine, low hour '05 210 Horizon btw, which as just appraised on NADA, is $21,405 (not including trailer, but as optioned checking off the boxes on the NADA site). I have it listed with the insurance company for less (a split between the boat and trailer at what I paid for it in August of 2013).

firecadet613 · **Posted:** Fri Nov 14, 2014 9:09 pm

Agreed value is how most of the big boats go. It's a big higher cost, but heaven forbid something happens, you know you can replace it with a like vessel. Boats are not like cars, as most people would assume. My '04 225 Sundowner was an agreed value policy as well and I'd recommend the same for your 210 Horizon.

Just saw your reply. Ask to get it bumped up to market value, but you may need a survey for that. Not worth it on a 21' though.

ric · **Posted:** Fri Nov 14, 2014 9:27 pm

Agreed value policy of 21k on my boat.

taz42169 · **Posted:** Sat Nov 15, 2014 6:32 am

Agreed upon value here. All the mods and extras added aren't usually included in an NADA valuation. I guess you'll have to ask yourself if you can find one like your current if you had to replace, and how much would it cost? I'm at $30k agreed value.

LouC · **Posted:** Sat Nov 15, 2014 8:29 am

I did the same thing on my old boat because of the complete structural and cosmetic restoration I did. I provided pictures and receipts for the work done and got a policy for $10,500 for my '88 Horizon which is about 2.5 times as much as you would get under an actual cash value policy.

rpengr · **Posted:** Sat Nov 15, 2014 8:45 am

I have mine insured for $17k agreed value, which is a little more than I paid, but covers some sweat equity. I also bumped up the bodily injury liability coverage to $250k/$500k, and bumped up the property liability coverage to $100k for about an extra $31 per year. Total premium $420/year.

Note on Agreed Value: The declarations page says that the agreed value includes the boat + motor(s) + trailer + permanently attached equipment + portable boating equipment.
(someday they will learn the definition of motor vs engine)

Here is the clause from Progressive Insurance regarding Agreed Value coverage (which is optional):

Quote:

If you pay the premium for this coverage for a covered watercraft, then subsection 1. of the Limits of Liability provision under this Part IV shall not apply, and the following provision shall apply to a loss to that covered watercraft:
1. The limit of liability for a covered watercraft for which Agreed Value Coverage was purchased is as follows:
a. for a loss that we determine to be a total loss to the covered watercraft, our limit of liability is the agreed value for the covered watercraft, reduced by the applicable deductible;
b. for a loss to the covered watercraft that we determine to not be a total loss, our limit of liability is the lowest of:
(i)
the amount necessary to replace the stolen or damaged property, reduced by the applicable deductible;
(ii)
the amount necessary to repair the damaged property to its pre-loss physical condition, reduced by the applicable deductible; or
(iii)
the agreed value for the covered watercraft, reduced by the applicable
deductible.

If you have "actual cash value" instead of "agreed value" coverage, then they would not necessarily pay the NADA book value. The would pay the "actual cash market value" of the boat and equipment as determined by the insurance company...an amount that you would likely be disappointed in. Since boat insurance is relatively cheap compared to car insurance, I would rather have better coverage.

Linecapt · **Posted:** Sat Nov 15, 2014 11:41 am

I certainly appreciate everyone's feedback so far and it is quite a learning experience for me, and hopefully others out there, as I could find no other conversation about this topic here on the forum.

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