Hello everyone –

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 couldn’t 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 don’t 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 didn’t 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 ‘discussion’ 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 “No” and asks why I’m asking. I tell him about the underwriter on the radio show and explain to him that I’m 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 wasn’t 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 didn’t 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. It’s in black and white – 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, it’s 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

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.

Dont matter to me .. Progressive would not insure it anyway ..over 15 years old ..... I did get Liability..... 109.00/yr

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"

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

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

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.

Isn't that the truth.

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.

it needs to be an accredited SAMS surveyor