Like Tree0Likes

Boat Insurance ... specifically Agreed Value Policies

Reply
Old 07-23-2005, 11:37 PM
  #1
Registered
Thread Starter
 
Wicked Temptation's Avatar
 
Join Date: Jul 2003
Location: Texas
My Boats: '94 Scarab Thunder (29')
Posts: 139
Exclamation Boat Insurance ... specifically Agreed Value Policies

Hello everyone Ė

This is sorta involved so please bear with me .

A radio show here locally raised some serious questions regarding our boat insurance. It caused me to get the policy out and read it VERY carefully. The reason was because the radio show had a marine insurance underwriter on today. A caller explained a recent claim he had regarding his boat and was asking the underwriter if what had happened was typical. The caller had an agreed value policy declaration, but the insurance company depreciated his claim because the age of his boat was greater than five years. The underwriter said that was standard practice.

Huh? I couldnít believe it. We have an agreed value policy on our boat that is now 10 years old. I specifically decided to take this option because our boat is in exceptional condition. Yeah, probably costs a few dollars more, but I donít need the hassle of what the boat is worth should I need the insurance. For the record, our policy is through Progressive, or Drive Insurance as they call themselves now.

So, I dig the policy out and read it VERY carefully, cover to cover, all the exclusions, declarations, etc. I found something I didnít know. The policy specifically states that outboard motors and outdrives are depreciated to fair market value after 5 years of age. Ok, so I could wipe out a drive and get into a Ďdiscussioní about the worth of that outdrive based on the low hours of our boat. Not something I would care to have to experience but fact just the same. But there were no other exclusions that would affect us.

Not satisfied, I pick up the phone and called them. I get Customer Service on the phone and ask them a simple question. What would be paid to me if the boat broke loose from the truck and went over the edge of a cliff and was reduced to splinters. The representative looked and tells me the agreed value minus the deductible. Still wanting clarification, I asked him specifically if the agreed value was depreciated in any way because the boat was over 5 years old. He says ďNoĒ and asks why Iím asking. I tell him about the underwriter on the radio show and explain to him that Iím just making sure that I completely understand my coverage. He then tells me something I was not aware of.

Every 3 years, the owner of the boat must have the value reevaluated. I asked how that was accomplished. Either the boat must be surveyed and the value submitted to our agent, who must then report it to Progressive, OR the fair market value as determined by N.A.D.A. or a couple of other sources that I wasnít familiar with would determine the maximum amount of the agreed value declaration. So in another year, I have to have the boat surveyed in order to keep the value up where I feel it should be. I didnít know this was something coming in the future. What all this means is that the insurance company will not put a ridiculous agreed value on a boat. That makes sense and I understand why. I simply did not realize it was re-valued every 3 years.

I did see something in there that I found interesting. In light of the SOTW tragedy and other boat accidents recently, there has been much discussion about the cost of insurance and how it might be affected from the recent events. Some people have written that it will become unaffordable to the masses, others have the opinion that coverage will be void if involved in Poker runs.

Guess what? My policy ALREADY has that declaration in it. Itís in black and white Ė no coverage if involved in an organized race event. With that verbage, I doubt seriously if you would have any luck convincing an insurance company that a Poker run was not a race. Those of you who are involved in Poker runs may want to read your policy again.

I thought this might spawn some discussion that would make others aware of specifics in their respective policies. If you really need it, itís a little late to learn that you have no coverage or reduced coverage from what you are expecting. Adding INSULT to INJURY is always doubly painful.

The PT Gang
Wicked Temptation is offline  
Reply With Quote
Old 07-24-2005, 01:05 AM
  #2
Registered
 
Poorsche's Avatar
 
Join Date: Nov 2003
Location: Melbourne, FL
My Boats: 2000 Century CCF 2600
Posts: 1,243
Default Re: Boat Insurance ... specifically Agreed Value Policies

So much for paying Agreed Value premium. I had no idea that was in there and timing is good because of in-process claim.

You start to wonder if you really have insurance at all--more like betting ta Vegas.
Poorsche is offline  
Reply With Quote
Old 07-24-2005, 05:38 AM
  #3
Platinum Member
Platinum Member
Trade Score: (1)
 
offthefront's Avatar
 
Join Date: Feb 2004
Location: Northeast,Fla
My Boats: 353 with Prochargers
Posts: 4,804
Default Re: Boat Insurance ... specifically Agreed Value Policies

Dont matter to me .. Progressive would not insure it anyway ..over 15 years old ..... I did get Liability..... 109.00/yr
offthefront is offline  
Reply With Quote
Old 07-24-2005, 06:53 AM
  #4
Platinum Member
Platinum Member
 
Chuck's Avatar
 
Join Date: Apr 2001
Location: Saratoga Springs, N.Y.
My Boats: None, but paid for one! Beware of Frisini / Sonic / Arrow Powerboats
Posts: 2,910
Default Re: Boat Insurance ... specifically Agreed Value Policies

That is why no poker run advertises anything about speed being part of the poker run. Be careful if you participate in a Kilo Run while at a poker run, you probably won't be covered. " A game of Chance not speed"
Chuck is offline  
Reply With Quote
Old 07-24-2005, 10:06 AM
  #5
Registered
 
Formula Outlaw's Avatar
 
Join Date: May 2003
Location: In the Mountains
My Boats: was a 89" Formula 311-SR1
Posts: 11,772
Default Re: Boat Insurance ... specifically Agreed Value Policies

I'm convinced there is a "Universal Law" within insurance companies.

"Insurance: You're covered for everything EXCEPT for what happens".
Formula Outlaw is offline  
Reply With Quote
Old 07-24-2005, 10:39 AM
  #6
Registered
 
Join Date: Oct 2001
Location: Tampa,Fl.
My Boats: 2001 26 ZX DONZI 496HO
Posts: 1,124
Default Re: Boat Insurance ... specifically Agreed Value Policies

My policy says poker runs are ok..........Speed endurance of any kind is out of the question. As for now poker runs are in the grey area, but for how much longer is the question.
Donzi Corleone is offline  
Reply With Quote
Old 07-24-2005, 12:12 PM
  #7
Masher touches my
Gold Member
 
Outdrive1's Avatar
 
Join Date: Aug 2004
Location: Phoenix, Az
My Boats: DCB DCB DCB DCB DCB
Posts: 2,280
Default Re: Boat Insurance ... specifically Agreed Value Policies

Quote:
Originally Posted by Formula Outlaw
I'm convinced there is a "Universal Law" within insurance companies.

"Insurance: You're covered for everything EXCEPT for what happens".


Isn't that the truth.
Outdrive1 is offline  
Reply With Quote
Old 07-24-2005, 05:30 PM
  #8
Registered
 
Join Date: Jan 2004
Location: Saint Petersburg Fl
My Boats: 1999 Chris Craft,
Posts: 1,565
Default Re: Boat Insurance ... specifically Agreed Value Policies

Great thread PT, FO, you are right about the only painless thing related to insurance companies or any sort is seems is you paying them...other than that it takes an act of Congress. I also have an agreed value policy on a >5 year old boat thru Progressive. Any idea what a survey will cost and best way to find one, I assume it has to be some sort of licensed surveyor person?
happy hours is offline  
Reply With Quote
Old 07-24-2005, 09:50 PM
  #9
Registered
Thread Starter
 
Wicked Temptation's Avatar
 
Join Date: Jul 2003
Location: Texas
My Boats: '94 Scarab Thunder (29')
Posts: 139
Default Re: Boat Insurance ... specifically Agreed Value Policies

Quote:
Originally Posted by mneal
Great thread PT, FO, you are right about the only painless thing related to insurance companies or any sort is seems is you paying them...other than that it takes an act of Congress. I also have an agreed value policy on a >5 year old boat thru Progressive. Any idea what a survey will cost and best way to find one, I assume it has to be some sort of licensed surveyor person?
I'm not sure what a survey will cost, or better yet, who is local to me that qualifies for such a survey. I've heard all the horror stories about surveys, although I'm really only interested in finding a guy that is acceptable to the insurance company that will say the boat is worth what I think it is. I'm not looking to put some inflated figure on our boat but I do think it is worth more than the average 10 yr. old boat.
Since I'm not concerned about the condition of the boat in this case (I already know that very well) it might make it easier and less expensive.


Well, we can always hope any anyway.
Wicked Temptation is offline  
Reply With Quote
Old 07-24-2005, 10:02 PM
  #10
Steve_H
Guest
 
Posts: n/a
Default Re: Boat Insurance ... specifically Agreed Value Policies

it needs to be an accredited SAMS surveyor
 
Reply With Quote
Reply

Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
JasonSmith
Baja
8
10-26-2011 09:32 PM
Strip Poker 388
Insurance and Finance
12
01-25-2008 11:15 PM
Sydwayz
General Boating Discussion
48
11-15-2004 08:18 PM
Cash Bar
General Boating Discussion
37
01-13-2004 03:06 PM
Sydwayz
General Boating Discussion
13
03-03-2002 02:57 AM



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -5. The time now is 02:58 PM.


Copyright 2011 OffShoreOnly. All rights reserved.