Boat insurance Questions

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Robski97

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I received a letter from travelers stating my policy has been reviewed and changed. Looks like they're changing me for a replacement policy to an agreed policy. ( the letter states the current value of the boat. )

My questions are:

1) can they do that ?
2) What does replacement value actually mean. The rep on the phone contradicted everything I thought it was. ( I thought if the boat was a loss I get either the price I paid for the boat or a replacement of same make and model but in the current year ? )

thanx

Rob
 
Rob, Travelers can change with 60 days or greater notice prior to renewal in NY. Agreed value is actually a better form, it is an agreed upon value of the vessel wether it is in line with current replacement cost or market value. Replacement Cost Means they will replace with like kind and quality.

I do a lot of marine insurance in NY if you have any further questions feel free to PM me.
 
They can change anything they want before the contract is signed; you can choose to accept it or not. I would think that a replacement policy would get you a similar boat of a similar vintage (not a new boat).

You might be able to get an agreed value policy set high enough to get you a new boat, but this will certainly cost you more than if the agreed value represented your actual depreciated value.

Mike
 
I do Agreed Value with my carrier. It costs me a couple hundred more per year, but I know exactly what I'd get if I had a loss. I'd rather pay a little premium so I could replace my boat rather than go into debt to make up the difference between true replacement and market-value in this horrible market.
 
Thanx guys....

Im more confused then before. Broker called me back said I have an agreed value policy. Its for 550,000 dollars BUT thats not what they would pay me ?? They said they would pay me book value ? SO then I said why do we have an AGREED value ? and the new value is a joke ...

Mike ill be emailing you !!!!

Rob
 
I'm surprised they ever gave you an agreed value of $550,000. What does a new 33 foot SeaRay go for? Or is your RO info out of date?

Mike
 
"Its for 550,000 dollars BUT thats not what they would pay me ??"

Read the polciy. It probably has a scheduled depreciation section. The agreed value is the face amount you start with, then they knock off a few per cent per year.
 
I finally located the binder . Its an agreed value policy and there changing the agreed value. If I want the value raised I have to pay for a boat survey with no guarantee they will raise the value. I asked if they would insure me for x dollars and adjust my premium accordingly and they said no. So I guess Insurance shopping I go.

Rob
 
Rob,
New Searay's are done thru NBOAT. I used them with my searay and have used them for every boat since.
I have agreed value and it's based on my bill of sale not appraised value.
You can see how they compare.
 
NBOAT - National Boat Owners Association (or NBOA). I have my non-Sea Ray through them. They're just like BoatUS in that they're not an insurance company, but rather an agent. I'm actually through them with Progressive.
 
With BoatUS we had an agreed policy too. Did not depreciate in the 9 years we owned her. When the sh*t hit the fan, I was glad it hadn't depreciated over the years. We recouped our full investment from purchase back in 2001. FWIW, after putting a lot into the boat fixing it up the first couple years, we re-surveyed and increased the value 30K from our purchase price. Our investment for the 30 increase was about 35, loss of 5K. Not too bad.
 
Rob,

NBOA or BoatUS will probably not insure a vessel that large. We are in SW florida, so it may be different. We only have two choices: Lloyds or Travelers.

I have reviewed travelers several times, and their agreed value is agreed value subject to variable deductibles depending on the claim. Lloyds provides the same type of coverage.

Ken
 
NBOA covers my 40'.

My policy says that agreed upon value can change and wear and tear is taken into considertaiton after 7 years.
So I am guessing Rob is on the edge of those 7 years and that is when it looks like they re-think agreed value.
I asked about increasing my agreed value since I added some items to boat, but was told I would need to get it appraised, so decided with the depreciation and the increase, it would probably be a wash.

Rob, Sell the boat to AnnMarie for $1 million, then use that bill of sale!
 
Dave,

I suspect then it is just south florida. We have tried them all. The premiums we pay are absolutely astronimical so I have tried everything to get them lower.

Ken
 
Got the same letter with Travelers - about a 50% reduction in the agreed upon value of my boat, without a corresponding decrease in premium. Told my broker that I'm shopping.
 
quote:
Originally posted by Robski97

Thanx guys....

Im more confused then before. Broker called me back said I have an agreed value policy. Its for 550,000 dollars BUT thats not what they would pay me ?? They said they would pay me book value ? SO then I said why do we have an AGREED value ? and the new value is a joke ...

Mike ill be emailing you !!!!

Rob

Click to expand...

The definition of insurance is to put you back to preloss condition. Basically, you wanted agreed value for the original purchase price of the vessel. Guess what. You're not insuring a brand new Sea Ray.
You should be in the $300K to $350K range with that boat.
If you insured the vessel with Travelers with A/V in 2006, they shouldn't change your value. And if you paid them Agreed Value premium for six years, they would happily scratch you a check for $550K. Being that the vessel was new six years ago, they should have the wherewithall to insure a boat at present market value then hold that amount.
Since you're shopping new companies, the clock resets on your value. If you find an insurance company who would write it at

It's not personal, it's just insurance.
 
BoatUs came back with 435,000 agreed value . Premium is pretty close to what im paying now. I guess it's my fault for not understanding the lingo . But they ( travelers ) were charging me my same 3 grand premium for half the loss coverage . That's just wrong . The boat us policy is 435 no depreciation bull****

Rob
 
quote:
Originally posted by missnmountains

Rob,

I gotta move north. I only dream of premiums like that.

Ken

Click to expand...


Look at the cost per the number of days you can use the boat. I wouldn't make the trade myself.

BTW, I use ACE via Dawn Speros at the Gowrie Group in CT. Very fair pricing and good service.
 
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