Insurance depreciation question..
 

I just installed a new Bravo XZ on my 89 model boat. About 2 weeks later I hit something that caused a failure in the lower. It was not immediately discovered as the failure chipped a tooth and ate a bearing, this caused a lot of heat and looks like it cooked the bearing in the upper as well as spreading hard face from the gears all over the inside. Not completely tore down yet. Initially I did not give much thought to the insurance company but this looks expensive.

I pulled out my policy and it says;
In the event of loss to or damage.yada yada.. or outdrive units or any of the preceding items that require replacement or repair we will path the lesser of :
a. the actual cash value at the time of the loss
b. the cost to repair subject to depreciation
c. the cost of replacement

Item b got my attention. How much would they depreciate an 89 Bravo? I don't think I would get far trying to tell them it was an brand new XZ. Maybe I would. I should have called them right after I installed it but it did not cross my mind.

Any thoughts?

Tim T.

Hmmmm, good question. My gut reaction would be they will give fair cost for replacement of a 1989 drive and not a spanking new upgraded XZ. They may lean towards repair cost had it been the original. Then again, since it's NOT the original insured equipment you could be in for a battle to get anything.....

I don't think I need a new drive, just a hefty repair bill. Maybe I should just take the lick and save the insurance for the big stuff. I am curious if others have had their rates raised for a single claim of several k.
Tim T.