View Full Version : House Boat Insurance Up Grade
02-24-2013, 07:17 AM
Travelers, is our carrier, anyone had actual experience in increasing there replacement value?
Curious what your carrier required
We tried to use a carrier established in insuring HB
My agent indicated I would need to show proof of upgrade (understandable), but then it was forwarded to Home Office for review. Seems like the agent could ya or na
Didn't recall them questioning the value when they covered it for purchase price?
02-24-2013, 03:23 PM
I'm thinking you need to approach it as an "Agreed Value" policy, I know we did. A replacement value policy depreciates over time and so does the value of your policy. The information below is from Hagerty but others are also more or less the same.
There are three types of value related coverage offered in the marine insurance industry today:
Actual Cash Value: This is the coverage type found most often on homeowners policies. It pays out a depreciated, “book value” in the event of a claim. The older the boat on this kind of policy, the less value it has.
Stated Value: These policies are better than Actual Cash Value because they allow you to “state” a value for your boat greater than its depreciated book value. But, these policies can still depreciate vessels, because they usually allow the insurance company to pay “up to’ the stated policy amount.
Agreed Value: Only Agreed Value polices guarantee you will get all of your insured value back in the event of a total loss. There is no depreciation of a vessel’s value with an Agreed Value policy, although many companies will still apply a deductible in the case of a total loss. Hagerty Classic Marine Agreed Value policies waive the deductible in the event of a total loss.