United Marine Underwriters Boat insuranceBoat InsuranceBoat Insurance boat insurance
BoatBrowser True Fish Tales LakeBrowser


 

boatinsuranceforagents.com BoatInsuranceForAgents.com

  consequential loss  Your Insurance Agent

How you're paid for a total loss

In the event of a total loss, your boat insurance policy may pay you based on the Agreed Value, Actual Cash Value or the Replacement Cost Value. In explaining how these three policy forms are different, I will use a three-year-old boat, insured for $40,000 which was destroyed by fire.

Agreed Value

Agreed Value is easy. You and the insurance company agree on the value of the boat before the loss. Using our example, you would be paid $40,000. If the current value of the boat at the time of the loss is $20,000 or $55,000, you would be paid $40,000, the Agreed Value of the boat.

Actual Cash Value

Actual Cash Value is the value of the boat at the time of the loss. A boat insurance company will pay the insured value or the Actual Cash Value of the boat at the time of the loss, whichever is lower. In our example, if the Actual Cash Value of the boat is $25,000, this is the most you will be paid. If the Actual Cash Value is $55,000, then you would be paid the insured value of $40,000. The Actual Cash Value is determined by the insurance company from sources such as a used boat price guide and other boats listed for sale.

Replacement Cost

The newest option is Replacement Cost. A Replacement Cost policy agrees to replace your boat with a new boat. You are required to purchase this coverage when the vessel is new and the coverage is only available until the vessel is two or three years old. Our $40,000 three year old boat has a Replacement Cost new today of $45,000. The Replacement Cost policy would pay $45,000 for a new boat. Some policies may specifically state they will pay a percentage over the amount the vessel is insured for, 20% for example. Once the boat reaches the age where replacement cost is no longer available, the policy form will be changed to Agreed Value or Actual Cash Value.

For complete details on partial loss click here.

Click here to return to Boat Insurance Guide.

Click here to review side by side comparison of programs represented by United Marine.


  Insurance Quote
Boat Insurance Quote
PWC Insurance Quote
Charter Boat Insurance Quote
Fishing Guide Insurance Quote
Pro Angler Insurance Quote

Insurance For
Runabouts - Cruisers
Sailboats - Houseboats
Personal Watercrafts
Bass Boats - Sport Boats
Performance Boats
Powerboats - Mega Yachts

Commercial Use
Fishing Guides
Charter Boat - Six Pack Charter
Occasional Charter
Pro Angler


Boat Insurance For Agents
BoatInsuranceForAgents.com
Agents
Agents Log-in



Insurance Resources
Compare Boat Insurance
Boat Insurance FAQ
A.M. Best Financial Ratings
Policy Wording
Boat Surveyors


Insurance Provided For
Boats
Personal Watercrafts
Charter Boats
Fishing Guides
Pro Anglers

UMU Resources
Premium Payment
About Us
Contact Us
Claims Center
Links


Boat Browser
Boats For Sale
Boat Search
Sell Your Boat
Boat Dealer Information



Lake Browser
LakeBrowser.com
Lake Search
Lake Resources
Boating Resources
PhotoBrowser

facebook twitter in

Like us on facebook
      

boat insurance

Site Map Privacy