Boat Insurance

BOAT INSURANCE

Insurance for your boats and other watercrafts.

We sell boat insurance for Foremost, Progressive, Nationwide, Allstate, Travelers, and Liberty Mutual.

Do you know the difference between Actual Cash Value and Agreed Value? Most people have ACV boat policies and don’t even know it. Here is the difference:

Actual Cash Value (ACV)

ACV translated means “What its worth in cash, today (just before you crashed it).” After your accident, an insurance company adjustor will go out to the tow yard and look over your boat. After that, using sources of their choosing, they will look up what the typical value should be for your boat, and this will be their settlement offer. This is basic coverage and the cheapest way to have “full coverage” for your boat. The issue here is your watercraft could be undervalued if you have it in good condition. Another way to think of ACV (aka regular boat insurance) is diminishing value. As your boat gets older, your value continues to go down sharply. In reality, boats and their motors are expensive, and if kept in good condition your boat is likely worth more to replace than it’s ACV value. Typically, we suggest this type of coverage for a very old, inexpensive boat that you are looking for liability only. Small boats under $1500 in value. If your boat exceeds $1500 in value you may want to consider an Agreed Value policy.

Agreed Value

If ACV is the problem, Agreed Value is the solution.  Instead of the above scenario with ACV, what happens instead is you and the insurance company agree on the boat value when you sign up – before the policy is issued and any money changes hands. In the event of a disaster, the insurance company guarantees to pay the value that you have agreed upon when signing up for the policy …NO MATTER HOW OLD THE BOAT GETS.

If you believe your boat is worth more than $1500 then this should be the kind of coverage you have. You might not. To find out for sure, look in the physical damage section of your policy. Somewhere in there it will say what is going to happen if your boat is a total loss.

In the event of theft or a total loss we will pay the Agreed Value.

Agreed Value is a simple idea and if the coverage is what it claims to be it should be written up simply in the policy.

We are happy to price your boat insurance with the best available ACV policy, and the best available Agreed Value policy and let you decide which is best for you.

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