Off Topic Boat valuations and Insurance

[spincast]

A little food for thought as the season is about to begin (and my insurance renewal comes up). The last 2 years, boats (and apparently everything else), have had their values grow exponentially. If you are like me and bought in 2014 when the CDN buck was worth more than the US buck, this has only been heightened. And then of course, there are all the upgrades I have done in the interim. And suddenly, the replacement cost is double what it used to be just 3 seasons ago, and almost triple what I originally paid. Not something we have traditionally had to consider in a world where assets other than housing depreciate. This year's renewal is going to pose some unique and new options for me to consider. If you have insurance in case of total loss (theft, accident on the highway or other loss) to consider when you renew this year, you may want to consider this as well. If anyone has any good renewal stories - please feel free to post below. I will update on my experience as it develops. I suspect it will mean my co-insurance (the uninsured value of the policy) is going to be a lot larger than in previous years, or than I want.

 

[GPS]

My premium is based on a $number that I gave them, not the current value.

 

[Wave Runner]

@spincast... You can insure your boat 2 ways, actual cash value or agreed value set by you with no depreciation. Of course the way you pick determines how much you will pay.

What is the different between Agreed Value and Actual Cash Value?
Actual Cash Value and Agreed Value are terms that refer to how the insurance company calculates a loss settlement. Actual Cash value means that the insurer will apply depreciation to the replacement value of the vessel to determine the maximum settlement amount, so you may not receive the full value listed on your policy.
To determine the depreciation amount the insurance company will consider all of the following:

• Condition of the vessel immediately prior to the damage,
• Re-sale value of that vessel and,
• Normal life expectancy of the vessel.

Agreed Value means that the insurer agrees to pay the full value listed on your policy declarations page in the event of a total loss; depreciation will not be applied. An Agreed Value policy is the better option and provides you, the insured, with peace of mind knowing that your investment is protected. See our General questions page for more information.

 

[spincast]

@spincast... You can insure your boat 2 ways, actual cash value or agreed value set by you with no depreciation. Of course the way you pick determines how much you will pay.

What is the different between Agreed Value and Actual Cash Value?
Actual Cash Value and Agreed Value are terms that refer to how the insurance company calculates a loss settlement. Actual Cash value means that the insurer will apply depreciation to the replacement value of the vessel to determine the maximum settlement amount, so you may not receive the full value listed on your policy.
To determine the depreciation amount the insurance company will consider all of the following:

• Condition of the vessel immediately prior to the damage,
• Re-sale value of that vessel and,
• Normal life expectancy of the vessel.

Agreed Value means that the insurer agrees to pay the full value listed on your policy declarations page in the event of a total loss; depreciation will not be applied. An Agreed Value policy is the better option and provides you, the insured, with peace of mind knowing that your investment is protected. See our General questions page for more information.

Yeah, I get that thanks. I have placed commercial fleet policies for years and am familiar with how insurance works - my question is - given that the value of our boats has increased, are you declaring the same value as you did 2 years ago and therefore increasing the amount you are co-insuring, or are you upping the value and taking the hit on the premium? And if so, what has the increase been? I have traditionally insured mine for just under 40k - and in the past that would have covered almost a full replacement, with at least a comparable used boat or a few k extra for new. Prices for new units these days are closer to 60, 70 k before kicker, xi5, 2 fishfinders, a fishhawk, stand up, mooring cover, travel cover, riggers, rod holders etc etc etc. So If I only insure for 40k the cost to make me whole is a heck of a lot more than it was in 2019.

 

[Wave Runner]

I personally have not increased mine but that's certainly something to take into consideration of course when it comes due again. Replacement these days has increased dramatically to be sure.

 

[Surfnturf]

I looked into this due to the increasing values and how to increase the insured value of my boat and was told by my broker that I would have to get a marine survey in-order to support an increased valuation.

 

[mainlymallard]

I supply full boat inventory at each renewal. This is done with retail replacement value in a spreadsheet format. Boat goes down or gets stolen they know exactly how much tackle, rods, reels, rod holders, life jackets, graphs etc are on the boat. That number alone was over $30,000 last year.

I reckon most people would lose their shirt if their boat was stolen or sunk.

 

[spincast]

I supply full boat inventory at each renewal. This is done with retail replacement value in a spreadsheet format. Boat goes down or gets stolen they know exactly how much tackle, rods, reels, rod holders, life jackets, graphs etc are on the boat. That number alone was over $30,000 last year.

I reckon most people would lose their shirt if their boat was stolen or sunk.

I'm not that ambitious, but I do take photos of all my tackle and equipment each year just in case I have to support the claim. Between the additional electronics and tackle coverage in my policy I had 10k over the 40 on the boat. The reality is a total loss is relatively unlikely, but they also become a more attractive target for thieves as the values keep climbing. I am hoping I can get a rider or umbrella to cover total loss while keeping my existing coverage for partial.
@Surfnturf - similar for me - I don't need a formal survey but was asked to get a dealer to give me written value. As another twist for me, Starcraft no longer makes this boat as a Deep V, so, even if I replaced with a new version, I wouldn't have the same characteristics.

 

[hvyhaul]

I supply full boat inventory at each renewal. This is done with retail replacement value in a spreadsheet format. Boat goes down or gets stolen they know exactly how much tackle, rods, reels, rod holders, life jackets, graphs etc are on the boat. That number alone was over $30,000 last year.

I reckon most people would lose their shirt if their boat was stolen or sunk.

I included pictures and serial numbers.

Makes it hard to argue items and overall condition of vessel etc.

 

[walleyeman]

Spincast- Always remember one thing that is SO true about any insurance co. They do not mine taking your money for policy/premiums BUT if they have to pay-out there money- that is a different story and cross your fingers with that! Touch Wood I have never had to file a claim! Good luck my friend I hope all goes well.

 

[spincast]

Spincast- Always remember one thing that is SO true about any insurance co. They do not mine taking your money for policy/premiums BUT if they have to pay-out there money- that is a different story and cross your fingers with that! Touch Wood I have never had to file a claim! Good luck my friend I hope all goes well.

Thanks walleye man, just for conext, My biggest claim was $6 million. Don't ask. The average policy i placed my last 10 years was 20 million coverage, with premiums northwards of a quarter million. I have overseen claims in excess of 250,000 on a regular basis and represented the organisation in court and with the lawyers Im not asking for insight on how insurance works. Just trying to get everyone's thoughts on how they are dealing with the increase in boat valuations.

 

[tazmania]

2 years ago with the first summer of Covid I contacted my agent to change/argue values.
My boat is not a fancy mega boat but it is mine and what I can afford
1999 Smokercraft 16' side console with a 20 Yamaha.
Pre Covid insurance value was 5800 for boat and motor. 1000 for trailer.
I provided agent photos, s/n and inventory of the boat. I had upgraded my trailer a few years ago so it definitely was under insured.
I provided links for similar sized and aged boats to show that I would be screwed if I was in total loss. Ended up with a value of 12,500. Premium went up 106 a year but I think its well worth it.

 

[Porkpie]

Something to think about to be sure. If I had to go out and buy my boat today, real cost with kicker, bowmount and graphs would be $85,0000! Wrap your head around that one, because I can’t!

 

[Alby]

Something to think about to be sure. If I had to go out and buy my boat today, real cost with kicker, bowmount and graphs would be $85,0000! Wrap your head around that one, because I can’t!

I.d take the money and run

 

[REBELSS]

Hi Everybody,

Is there a way to save money on the insurance by avoiding to go through a broker?

Regards,

 

[Porkpie]

I.d take the money and run

No way is get that kind of payout and nor should I because I don’t have that in to it. But go and price out your boat, toss in the extras at the drug money prices they are asking and then figure out how you’d come up with the cash just to buy what you have now without a huge mortgage. Spincast brings an interesting point to light. I might have to call the insurance company too.

 

[Alby]

No way is get that kind of payout and nor should I because I don’t have that in to it. But go and price out your boat, toss in the extras at the drug money prices they are asking and then figure out how you’d come up with the cash just to buy what you have now without a huge mortgage. Spincast brings an interesting point to light. I might have to call the insurance company too.

Yeh for sure they sure have jumped thats why i.d likely just take money and not replace would cost more than its worth

 

[Landlocked]

Great thread! I'm in the business and should add the agreed value is not usually available on boats over 15 years without a marine survey by an accredited surveyor, which there aren't many in our area

 

[Way She Goes]

Funny but I have a 1987 mag190 Thundercraft . I put auto pilot and graph on last year that's worth more than my boat. Lol. Wouldn't change a thing. Insured for $5g boat and trailer. Premium $347. Taxes in .

 

[Porkpie]

Great thread! I'm in the business and should add the agreed value is not usually available on boats over 15 years without a marine survey by an accredited surveyor, which there aren't many in our area

Good to know, is this pretty standard industry wide? My boat is less than that, and I’d rather not have to run around trying to find a surveyor.