Replacement Cost vs. ACV (Actual Cash Value) is a huge issue when it comes to a boat policy.

What is replacement cost? It is a policy that pays to replace, repair, or pay for a total loss without Depreciation. In the event you buy a used boat and insure it for X amount of dollars, in the event it is totaled, then they pay the amount the insurance policy was agreed to.

ACV = the actual value of the item at the time of lost. This is an old school type policy. In the event of a loss, the company will apply depreciation to a part price and leave the balance to the policy holder. In the event of a total loss, they will only pay the actual cash value of the boat at the TIME of loss.

You need to check with your agent to see if your policy is an ACV policy. If it is, ask your agent if they offer a replacement cost endorsement. Some of the companies have improved their services by offering this endorsement. Most of the time it is only 10-20 dollars per year extra!

Boat policies are not regulated by the Texas Department of Insurance like they regulate auto and homeowner policies. So the coverage differs greatly from company to company.

Any chance I could insure my old 1972 Starcraft ?

We have replacement on ours...worth the extra bucks in my opinion.

mike is agreed to value the same as acv or replacement?

No, the ACV and agreed value are two different things. Agreed Value means that both the insurance company and the policy holder agree that the boat is worth X amount of dollars. In the event of a total loss, they will be paid X amount of dollars.

The ACV amount will be worth only the amount of the boat at the time of loss.

Example:

John Doe insures his boat for $15,000 on an agreed policy. He has the boat for 5 years and it is totaled. Under the agreed policy, he will receive $15,000, regardless what the actual cash value of the boat is at the time of loss.

Now if John Doe had insured his boat for $15,000 on an ACV policy, and keeps it 5 years when it is totaled. At the time of loss, if his boat was only worth $7500, under the ACV policy, that is all the money John Doe would be collecting even though his face value is $15,000.

What about the stuff on the boat such as motors, trolling motors, safety equipment? Would that be included? I have an old aluminum v-hull I need to get insurance on after I get it painted. I will want ACV for it since it was made in 1964, they would not want to give me you know what for the boat. My company guessed it would be about 50 bucks for a year. They won't know more till they see the boat.

Thanks mike

good posts mike great info and hasnt turned into a insurance bashing post..........what a miracle LOL JK

I only bash one company. And it isn't Foremost either! They do a good job!

I was stuck like that once but now I have re-placement vaule on mine and contents. extra cost but worth it to me .

i dont mean to jump in on your conversation but im in the inxurance business. also make sure if you have replacement cost that you have your boat insured to value. you will never get paid more than the limit on your policy

I am wanting to remember that Progressive will only write a ACV or agreed value policy if a boat is fairly new. Does this ring a bell with anyone? Seems like I ran into this with my 2002 Ranger.

I bought a 1973 Kenner 14' Piranha Fisherman Stick Steering Ski Barge with a 66� wide beam and a tilt Hosclaw trailer. It has 1� square aluminum tube rails running down nearly the full length of the boat. I spent an additional $700 for a 1998 Mercury/Force engine. Runs about 30 MPH. In addition I replaced the controls, installed new carpet, I painted inside and outside the boat, painted Grandpa�s on both sides of engine, painted �Gone� on one side of the stern and the other side �Fishing�. Installed a fish finder and two new marine batteries. It seats 2 fishermen on an eight foot long fiberglass fishing console with a huge cushioned topped fish ice box that I converted into a live-well situated between the fishing chairs. I have put $2,500 in it. While it is not a $40,000 boat with paint that sparkles all over with a 250 Hp motor it looks real good for an old boat, gets us there and back, and gets the job done. The best part is it�s paid for.

Progressive allowed me to set its value. The break down for the agreed value is $2,500 for the engine, $2,500 for the boat, and $1,500 for the trailer.

Total agreed value is $6,500

Not sure about progressive, but I have Geico and they allowed a "declared value" on my '86 Astroglass. Pretty decent premium too. If I remember correctly it was somewhere around $275 for the year.

I sure am glad I saw this posting. I checked with my agent and all state farm offers is cash value. I have been paying on a $21,000.00 policy that is only worth about $8500.00 What a racket. I'm switching.