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Catalina/Capri 25/250 Sailor's Forums

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Agreed amount insurance

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ct95949
Captain

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Aruba
300 Posts

Initially Posted - 12/22/2005 : 12:16:02

Has anyone been able to get an 'agreed amount value'insurance policy that comes any where near covering all the expensive upgrades made since buying the boat? I have no illusions about selling the boat for what I've spent on it(I'm embarassed to say how much

)but I would like a policy that covered everything in case of a total loss.
It appears that agreed amount value is not much different than market value.BoatUS is offering me a policy for boat and equipment with a maximum coverage of $8500 which is what I paid for the boat, motor, and trailer. What about all the new standing rigging, sails, furler, line, clutches, etc...
Some of the insurance agents I talked to mentioned an out of water survey for $250 plus haulout which I guess I'd be willing to do if that's the only way to get a higher coverage. Has anyone done this?
I am getting all the liability stuff too and I am switching from a AAA homeowners policy to a marine insurer because AAA did not know if the boat was covered for sinking. Putting a hole in your boat is not one of their "covered perils" in the personal property section.
Any thoughts or suggestions would be greatly appreciated.

Thanks,
Craig

'90 SR/WK #6017. PO of '79 SR/SK.

Edited by - on

Frank Hopper
Past Commodore

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Pitcairn Island
6776 Posts

Response Posted - 12/22/2005 : 13:07:02

When I bought my 82 I insured it for 7k, trailer for 2.5k and the motor for .5k The following year I called my State Farm agent and told them I wanted to increase the coverage on the boat to 10k, they said why and I said New sail, rigging, and hardware. They said OK and increased it, all over the phone.
When I paid $300 for a catamaran they insured it for $2500 and paid in full when a storm destroyed it.

Edited by - on

ct95949
Captain

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Aruba
300 Posts

Response Posted - 12/22/2005 : 14:15:41

Hi Frank
Last year I increased my AAA coverage from $8500 to $13500 because of upgrades to the boat.Yesterday they told me I would only be paid market value regardless of what coverage was listed on the policy.

With boat insurance being relatively cheap I would be happy to pay the premium on a $20,000 policy if I could get it but I can't.

Edited by - on

Gloss
Master Marine Consultant

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USA
1916 Posts

Response Posted - 12/22/2005 : 15:00:21

When I insured my boat with Allstate I listed a purchase price for boat, new motor, new trailer, and added a few thousand dollars for equipment. I am paying premiums based on those values. I would argue that if they are accepting these premiums, then they are accepting the values. Any lawyers out there (who will admit it) to comment on this logic (or lack therof)
I have my house, truck and boat with Allstate, and used to have a rental property with them. They have always treated me very fairly in a claim. I am considering getting an Umbrella policy with them too. Anybody else out there with experience with one of them?

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Downbucket
Navigator

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USA
188 Posts

Response Posted - 12/22/2005 : 15:50:07

Hi All:

I am an attorney in Portland, Maine formerly in private practice now in the public sector so I cannot give any legal advice. Suggestion: read your policy carefully. Does it state "fair market value" OR "replacement value?" As a boat owner, I am having my 1980 Catalina 25 surveyed this spring. This will then be forwarded to my insurance company with a request to issue a policy for replacement value. Some insurance companies will do this, some will not.

Will

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Gloss
Master Marine Consultant

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USA
1916 Posts

Response Posted - 12/22/2005 : 17:30:36

Hey Will,
Read my policy? Gosh, I guesse I should do that. I'm guilty of trusting my agent to steer me the right way.
One of my lines of logic in keeping all my policies with Allstate is that if I get in a wreck when I pull my boat to the Keys each year I have but one insurer to deal with, the boat and car divisions can fight it out.

Edited by - on

Champipple
Master Marine Consultant

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USA
6855 Posts

Response Posted - 12/23/2005 : 07:45:35

Our policy is a replacement value policy and has the boat at about 9k (insurance is harvey's deal so I don't know the exacts - it used to be 6k) and the motor for 1500. We've been hoping that she falls off the jack stands for about 5 years now, but that hasn't been the case. We are with ACE marine insurance. I've always been leary about the actual value policies but many here are more than satisfied with those policies - Boat US being probably the most popular.

If your looking for a quote, try the Boat US link on the association links page. the ASsn gets 3 bucks for each legitimate lead generated.

Duane

Edited by - on

ct95949
Captain

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Aruba
300 Posts

Response Posted - 12/23/2005 : 10:34:11

Thanks all for the input.It sounds like a survey and a replacement value policy is the way to go.If they replace my boat with one of comparable gear and condition I'll have nothing to complain about.

Thanks,Craig

Edited by - on

roberoo
Navigator

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USA
182 Posts

Response Posted - 12/23/2005 : 10:43:32

Not sure why you are having an issue. I had a Macgregor 26 fall off the trailer they paid agrred upon value of 8500.00 I used proceeds to by a cat 25 for 6500. I put another 6 grand in it and now Boat US with no problems increased it to 14000 agreed upon value. With no survey pictures etc.

I figured after my first loss I would have had issues but there have been none for 2 years now. Also Boat US is extremely easy (at least for me) to use. I also have a power boat and a jetski covered by them. jetski is more expensive than the power or sail. I guess the liability is the issue on a JetSki.

Edited by - on

Champipple
Master Marine Consultant

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USA
6855 Posts

Response Posted - 12/23/2005 : 11:36:18

Bob -

Total loss is one thing, both types of policies have the payout value and a total loss of vessel is usually not too difficult to deal with. But say for example you crack the boom and need to replace it. If its not a replacement value policy, the Insurer can say its a 25 year old boom and its real value is only about 300 bucks.

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Doug
Captain

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USA
457 Posts

Response Posted - 12/23/2005 : 17:18:48

First: Read your policy.
Second (Speaking in broad terms)most policies will pay RC (replacement cost) if and when the damaged item is repaired or replaced. If the repairs aren't done they will pay ACV (Actual Cash Value). In the event that repairs exceed the limits (total loss) they will pay the limit listed on the policy. There are very few policies that are true replacement value.

When an insurer insures the boat they need to have an idea of the value. Some companies just use NADA or other Blue Book sort of things. Some companies will use a survey. Even then, you might not to have enough coverage to cover a total loss because of additional items such as debris removal.
When shopping for a policy ask consider:
1) High liability. Think in terms of at least half a million to a million.
2) Content coverage. Does the policy cover all the stuff in the boat?
3) Debri/ wreck removal. Is it part of the limit or seperate?
4) Pollution coverage

With my C25 it was easy. I just called my agent and asked for $10,000 for the hull and another $5,000 for the stuff in it.
With the C34 they demanded a survey, and no matter how much I begged they wouldn't insure it for more.

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ct95949
Captain

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Aruba
300 Posts

Response Posted - 12/24/2005 : 11:40:05

Doug-
Excellent reply-is insurance your business? I need to find out what part of the policy would cover salvage,that sounds expensive.The quote listed $0.00 for personal effects-property not attached to the boat.If that could be set at $5000 it would help alot.

Bob-If I only had damage to my boat I would repair it or salvage all the parts.My concern is a total loss-sinking or burning-where all that shiny stainless steel could not be recovered.What you did with BoatUS is exactly what I want to do but so far they won't go over $8500.I'll try again.

Thanks,Craig

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