Boat Insurance

[Skidave]

So this topic bounced around a bit before, but I was curious about those of us with older boats and replacement costs. For our 2003, I'm using Ski-Safe and I have the insured value of the boat at the price we paid for it when we purchased it new, plus I think $1,500 for the trailer, and then some money for equipment theft, etc. We own the boat and it is going to be in the family for a while because a newer version is not in our budget. However, should something catastrophic happen to the boat where it is totaled, the value I hope to get from the insurance company is no where near the cost of a like new replacement. Actually, I think the price of a replacement has doubled. So as my boat ages and boat prices go up, what should I do? Insurance is not my business, but I guess there is a calculation to raise my premium if I want to increase the replacement cost?

Anyone have an opinion / suggestions? My policy renewal is not until November, so there is no rush. I will be calling in the fall to discuss options before I renew again.

[pSchwade]

I dont think you can get insurance to replace your current boat with a brand new version, but when you have a catastrophic claim it should pay out enough money to get a comparable 2003 model.

[nukemustang]

Maybe I am misreading your paragraph, but are you saying if you total you 206, you want a new 200V (just a guess on the model) to replace it cause it is the "most similar" current boat?

Or are you looking for another 206 around the same year/hours/condition, but the values of the used boats are being driven up by the cost of new boats?

I agree with Schwade, they are going to pay you the value of your current boat, it would be up to you to have to find a similar replacement, or pony up a bunch of money to get a 2016 (fill in the blank).

[Quinner]

Really depends on your policy, if you have an agreed value then that is what you will get although depending on the insurer agreed value may not always mean that, with Progressive it does. As an example I also have my 206 insured for the 50k I paid for it new, with a total loss that is what I get less deductible. From there I could easily find a similar replacement for around half that or pony up 30-40k in addition for what I would consider it's replacement, a 200 Open Bow. If you are looking for zero out of pocket for the latest model then you would need your agreed value to match that amount, or 80-90k as I see it. That is assuming the insurer would even write the agreed value policy for +/- 4 times the boats actual value.

[nukemustang]

Really depends on your policy, if you have an agreed value then that is what you will get although depending on the insurer agreed value may not always mean that, with Progressive it does. As an example I also have my 206 insured for the 50k I paid for it new, with a total loss that is what I get less deductible. From there I could easily find a similar replacement for around half that or pony up 30-40k in addition for what I would consider it's replacement, a 200 Open Bow. If you are looking for zero out of pocket for the latest model then you would need your agreed value to match that amount, or 80-90k as I see it. That is assuming the insurer would even write the agreed value policy for +/- 4 times the boats actual value.

Im shocked that someone would insure your boat for even 2X its value. That to me is like buying a Chevy Volt and insuring it for $100K and having it totaled and buying a new Z06 vette as a "replacement", lol.

[Quinner]

Was surprised myself when I renewed this year that Progressive has not made me lower that "Agreed Value". With my previous boat insured the same way, that company (don't remember the name) dropped my agreed value down 10k or so after the boat turned 5 years old.

[hondaprlud]

All my boat policies have been agreed value. And they have never adjusted the value as the boat ages, like insurance does with cars. I won't buy a boat policy that wants to quote based on a book value. I'm currently with ski safe and before wit Boat US, had a claim with Boat US and they were fairly easy to deal with.

[Skidave]

So basically, I think it comes down to agreed value. No, I know that I will not be able to insure for a replacement cost of a brand new current boat. I think the big factor is how much boat prices have JUMPED from 10-15 years ago. Yes, everything goes up in price. But the wakeboard / waterskiing boat industry has been a logarithmic increase vs a linear increase.

We all love our boats so much, I would hate to have something to my boat that is a total loss and have to buy something used. The way I take care of things is much more detailed and caring than most. However, most on this forum are like me and treat their boats the best in the world. Many are more over the top than I am... When it is new, you know it's life. When buying used, you are going off of someone else telling you what you want to hear. Dealer records show maintenance, but the way they may treat the boat is different story.

I hope to never be in the situation where I have to replace my boat due to a total loss...

Dave

[SkiTower]

I lowered my premium under the similar logic: It was covered for purchase price but that wouldn't get me a new one and is too high for a comparable used one. I lowered the agreed value to a good condition used one.