Insurance "Agreed Value"

DaFish

DaFish

Active Member
Mar 11, 2011
663
Manitowoc, WI - Lake Michigan
Boat Info
1999 370 DA
Engines
7.4 MPI Horizon Merc w/ V-Drives
Just a quick question - is it normal that boat insurance companies will insure a vessel for the "agreed value", which is what you paid for the boat, not what the boat is worth at retail?

I was able to negotiate a very agressive deal/price in the purchase of the '99 370 we just purchased and because that is the purchase price, that is what the insurance company is taking as the "agreed value" if the vessel was a total loss, not what it would cost to replace her. In this case there is almost a $40k difference.

Is this normal? The insurance company that we are with is a national carrier that writes a lot of marine polices, so they are not new to it. Your thoughts ..............
 
Not normal for us. We paid 16,000 for the boat. My agreed value on policy is $35,000, which is would it would cost in the market to replace the same boat.
 
I have my insurance with Progressive purchased through USAA. The agreed value of my boat is the value that I told them I wanted to insure it for. I'm sure that they wouldn't have allowed me to insure it for some outrageous figure but they accepted what I told them and it is over double what i paid for the boat.
 
I got to name the price I wanted insured and that is the agreed value on the 340. It is more than I paid for her but well within the price range.
 
Same as Jim, Bought the old Sea Ray for $13K and agreed on $18K.
 
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Thank you for the quick replies - looks like I have some more insurance shopping to do. If I may ask, who are you insuring with that recognizes boat value and not what you paid for it?
 
I'd be curious to know who you are with as I have the same issue as the OP.
 
I'm the same as Jim. Paid 70 and am insured for 114 on the 370. That's what they call "Replacement Value".

Mark


Sent from my iPhone using Tapatalk
 
Check out Global Marine Insurance. They are an independent marine agency and have offered great service. They understand marine insurance, like no other I called to check out their policies. One anecdote; the insurance carrier they put me with raised my rates after a claims free year. They called me, (they called me!), to suggest other carriers that were better at that time.

MM
 
MonacoMike said:
Check out Global Marine Insurance. They are an independent marine agency and have offered great service. They understand marine insurance, like no other I called to check out their policies. One anecdote; the insurance carrier they put me with raised my rates after a claims free year. They called me, (they called me!), to suggest other carriers that were better at that time.

MM
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I am working through Global Marine - specifically Ace Insurance - and they are the ones that will insure for purchase price and not replacement or market value, and I am being told by Global that that is the way with all the ins companies they represent. Thus my question .....
 
As long as the value you want to insure for fits within the realm of common sense, i.e. the underwriter looks up the value in the price guide and you are under the high retail value, they should accept the agreed value you request. If you are trying to write a $300K agreed value on a 1995 370DA, then the underwriter is going to ask for a survey to prove value.

It sounds to me like you are talking to an agent who isn't well experienced in the marine area..............
 
Give Pete aka Pau Hana[BOC] a call and tell him Wayne sent ya. 800-726-2728. :thumbsup: . :thumbsup:
 
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Agreed value levels also change payment levels! I requested $18,000 on our 1990 270DA and that was ok with our carrier. A few more $$ than we paid but I've done some upgrades and she runs like a top, Mike.
 
I agree with all above, my insured value is over double what I paid.
 
I just used Pete aka Pau Hana too....

Let me say that I think your question, "is it normal that boat insurance companies will insure a vessel for the "agreed value", which is what you paid for the boat, not what the boat is worth at retail?" , yes it is normal....

I've checked around a fair bit and many insurance companies (BoatUS, for example) will only insure for what you paid for the boat. Their reasoning is that they don't want to provide a gain if there is a total loss, they only want to make you "whole". I think the logic is flawed and it stems from their concern of dishonesty. I think they are worried about someone buying a boat cheap, getting full agreed value and then profiting if there is a full loss. First, I don't consider it profiting if I have to go get an equal valued boat. Second, I felt that the insurance company was already working against you with that type of logic. Not a company I would want to be calling in times of a claim.

I spend a fair amount of money on a survey. The surveyor was accredited and had years of experience. I provided that to the insurance companies. If the insurance company didn't want to use that, they were more than welcome to check with their own surveyor. But, I'm not being penalized because what I paid for a boat. Several insurance companies would only insure for the sale price, others would insure the surveyors estimated value.

I went with a company that wrote it for the estimated value. That way, I know that I can be made whole in the event of a total loss....

Shop around and don't except anything else. You pay good money for insurance, make sure you have the right coverage.
 
I bought my boat for 181000 blue book was 315000 we agreed at 300000 they look at the actual value determined by blue book and because my boat was a left over waived the survey.
 
DaFish said:
I am working through Global Marine - specifically Ace Insurance - and they are the ones that will insure for purchase price and not replacement or market value, and I am being told by Global that that is the way with all the ins companies they represent. Thus my question .....
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There must be some disconnect in the communication or this is a policy issue from Ace. I did not have that problem but did set it at survey value.

MM
 
I have Geico, which I've been very happy with. Both my Sea Ray and my Pursuit are with them, agreed value, and the value is what I told them I wanted. Basically, they asked what I would need to replace it. The number I gave them is the policies agreed value.
 
I have BoatUS and told them what I wanted it insured for - Not 100K or anything but replacemen value.

LK
 
mainstream said:
I bought my boat for 181000 blue book was 315000 we agreed at 300000 they look at the actual value determined by blue book and because my boat was a left over waived the survey.
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This situation might work in a total loss claim, but most of you guys paying for way more value than you paid for the boat are likely paying too much in premium and will get a surprise at claim time. It is rare insurance companies payout more than acquisition cost in a claim.

MM
 
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