I haven't looked at our policy lately, but I seem to remember that we have an agreed upon value.
Not what you asked, but on the subject of insurance companies, if any of you have Markel as your carrier, I HIGHLY recommend you shop your policy around. It has been 7 or 8 years now, but I was an owner on a houseboat that sunk. We were insured with Markel, and they were terrible to deal with.
Most insurance companies require an out of water survey to be done at least every 5 years (used to be 3 years). Within the report of the survey there should be two values. One will be listed as "market value" and the other would be "replacement value". I think most insurance companies go by the replacement value. Call MaryAnne at Gleave Insurance in Page, she is very informative and their company has been great to work with for the last 30 years.
Thanks, I do have my insurance with MaryAnne. My concern is that we had our insurance at $400,000 and once the survey was done the value went down to $306,000. Even though the survey company told us that our boat was one of the nicest and best maintained on Lake Powell. MaryAnne said the companies she deals with, do not do replacement value. I was just wondering if anyone had insurance that does.
I have had replacement value on my speed boat for nearly 22 years, so if it is a totalled I would as least get what I paid for it minus deductible. A couple years ago, I priced out with other companies what it would cost if I changed to a policy without replacement value and found out I would only save $30 a year. So I stayed with the replacement value policy.
Be sure you read the policy carefully.
Lets use progressive as a example ---
under damage to your boat, you have three ways they can look at paying for a total loss ( They are the ones that make that determination)
1. you can purchase -- Total loss replacement / purchase price coverage -- this provides replacement of the watercraft for the 1st four years from manufacture date--- after the 4th year coverage changes to purchase price ( what you paid for it with proof) -- so basically, if you have had this coverage on a boat you purchased new 10 years ago, and it was deemed a total loss, you would get the amount you paid for the boat 10 years ago. Generally, you can only get this coverage on a brand new boat.
2. Agreed value coverage - this is where you put a actual amount of coverage you want on the boat -- if there is a total loss ( again they decide) you get that agreed upon amount -- your premium is based on the amount you select -- higher the agreed amount, higher the cost.
3. standard coverage -- you get actual cash value for the boat
Unfortunately there are very few companies that write houseboat insurance AND are able to comply with Aramark's and the NPS's requirements for coverage. Be sure to work with your agent to be sure you have the coverage required. If you do not, you might be the one left holding the bag-- some of the largest companies are not able to satisfy the requirements , but would still be happy to sell you coverage. You get to find out about it if there is a loss----
@davew I believe you are correct, although which of the 3 options you get is determined at the time you purchase your policy.
I have Progressive on my Malibu, and my policy is for replacement coverage for the first 5 years of boat ownership. After that I will switch to an agreed value coverage (same thing I did with my old boat).
My biggest problem with the total loss of our houseboat was that Markel wanted to have 3 different estimates of the damage of the boat (think about trying to do that on the north end of the lake), and then exercised their option (as stated in the policy language) to pay the value and take no responsibility for disposal of the hull (actually worked in our advantage, but it was more work for the ownership group).
I always recommend you read your policy, but I don't think you would have seen either of those problems unless you read it very closely.
I sell progressive and markel, and you are correct that finding qualified repair companies in the northern lake is all but impossible.
I have seen multiple instances where markel paid to have the boat towed to page for repair.
I was hoping that the change in ownership at offshore would help in this regard, but that has not happened.