With the current high price of boats on top of not being able to get them, is the better move to go with the agreed value? And how do you determine the price? Just eyeball how much it would take to buy the boat new again? I feel like the NADA value is going to be low in the current environment.
Anything else you recommend about the various input options to boat insurance? It’s overwhelming to decide all of this stuff. On top of this do people usually have umbrella insurance to cover the rest?
It depends where your company gets the value of the boat. Some companies out there use Market value, so what that similar boat sells for in today’s dollars. But some companies use book value, personally I don’t think a book value is anywhere close to what it is really selling for. When you get the renewal each year if you look at your agreed upon value and you could then adjust it up or down based on market conditions. Even in the last 3 years of crazy prices, you could be fairly close to it that one time a year.
If possible I’d always go with Agreed Value. You can always adjust the agreed value over time if you want, Or just keep it at the original agreed value and be over insured at some point. Better to be over insured than under insured.
This is a good reminder to be in-touch with insurance agents and aware of your policies.
I just left a message with our insurance agent last week to add coverage to the agreed value of our tritoon as a result of its current value. We had it insured at what we bought it at in 2019. We were offered $8600 more than what we paid for it in 2019 as a trade-in this Fall when we were kicking the tires on something different.
When he called back he said that recreational vehicles, homes, and automobiles are severely underinsured in today’s world by most people and that nobody wants to admittedly up their premiums but will be delivered a brutal reminder if they ever need to replace something due to loss.
What’s weird about the Agreed Value is that doesn’t it invite insurance fraud? If I say my boat is worth $100K even though it’s only worth $50K and then I purposely total it, I just get to keep the extra $50K? How do they protect against this.
It’s just really weird when I am staring at the blank line asking me what to put for the Agreed Value. Normally when I buy insurance, I am not in control over the dollar amount.
It’s just really weird when I am staring at the blank line asking me what to put for the Agreed Value. Normally when I buy insurance, I am not in control over the dollar amount.
They would just disagree with your valuation and they would tell you this. That’s why it’s called an agreed value. Meaning both parties need to agree. They’re not stupid.
What’s weird about the Agreed Value is that doesn’t it invite insurance fraud? If I say my boat is worth $100K even though it’s only worth $50K and then I purposely total it, I just get to keep the extra $50K? How do they protect against this.
The premium is also a limiting factor, as you will need to pay the premium on a $100k boat instead of a $50k boat. And as Joe stated if your 1982 16′ Lund is insured for $100k, you will have to justify that amount at the time of a total loss claim. Agreed Value is nice in that you and the insurance company know what you have, but there’s a reason it’s only used on more subjective items like boats. Umbrella insurance does not help with the value of your boat/home/auto, it only protects you from liability to others (ie you hit someone and they sue you for damages).
Another rude awakening is if you have Actual Cash Value on your Homeowner’s and have a claim (particularly hail), as you will be paying a much larger share of that loss than just your deductible.
Also, you will want to check to see what is all covered by the policy. Do they cover towing the boat off a lake? What about towing the boat and trailer on the highway? How much tackle and loose equipment do you have, and how is that covered? There’s a lot that goes into what most would think is pretty straightforward.
Another rude awakening is if you have Actual Cash Value on your Homeowner’s and have a claim (particularly hail), as you will be paying a much larger share of that loss than just your deductible.
Sadly most policy holders don’t take the time to look at and understand their insurance policies. Everyone should sit down with their agent at least yearly to review their policies and ask questions to understand their coverage’s. A good agent will and should take the time to explain their current coverage’s as well as to discuss various endorsement option so that a policy holder can make good informed decisions. Waiting till after a claim to find out what is and what is not covered rarely works out well.
<div class=”d4p-bbt-quote-title”>queenswake wrote:</div>
It’s just really weird when I am staring at the blank line asking me what to put for the Agreed Value. Normally when I buy insurance, I am not in control over the dollar amount.They would just disagree with your valuation and they would tell you this. That’s why it’s called an agreed value. Meaning both parties need to agree. They’re not stupid.
I have an agreed upon value for my boat that is $20k more than what we purchased the boat for 2 years ago. I pay a little more for the premium, but not by much. If anything happened that extra $20k would help me find a replacement immediately vs waiting for something comparable in condition/pricing to what I had.
Sadly most policy holders don’t take the time to look at and understand their insurance policies. Everyone should sit down with their agent at least yearly to review their policies and ask questions to understand their coverage’s.
100% agreed! 
<div class=”d4p-bbt-quote-title”>fishthumper wrote:</div>
Sadly most policy holders don’t take the time to look at and understand their insurance policies. Everyone should sit down with their agent at least yearly to review their policies and ask questions to understand their coverage’s.100% agreed!
Well said.
We’ve opted to pay a bit more for our local insurance and agent versus shopping it all over for every toy, vehicle, the house, etc. because if I called him today he’d pick up before the 2nd ring and will drive to our house to talk at any time about policies. There is a reason some places are cheaper than others. Like anything, you often get what you pay for with “bargains” really only being risks.
Insurance can be expensive, but peace of mind is invaluable.
I just left a message with our insurance agent last week to add coverage to the agreed value of our tritoon as a result of its current value.
I did this same thing a few weeks ago.
If you are doing an agreed value they actually dig into it by either an adjuster or underwriter to determine that they will agree with the value. You could possibly get a little more than actual value, but I doubt something like double the value would be “agreed upon”. I just had mine upped a few months back and this is exactly what the agent explained to me.
If you’re looking I would highly recommend Worldwide Marine. Bob is awesome to deal with. Here is a snipit of his email when I switched to him last year:
“I really appreciate the opportunity to earn your business. I have attached your quote.
Most insurance companies write only actual cash value policies. In the event of a total loss, you would only recieve what your company thinks your boat is worth. We write agreed value policies. If you have a total loss, you will receive the amount we have your boat insured for.
There are a lot of other differences as well. Please give me or my assistant Bill a call and we can go over all the coverage’s.
Thank you.
Bob Luellen
Worldwide Marine Underwriters
100 W. Saginaw Hwy. Suite C, Grand Ledge MI 48837
Toll Free 1-800-339-1235
Office (517) 627-8080
Cell (517)256-0734
Fax (517) 627-3355
If you’re looking I would highly recommend Worldwide Marine. Bob is awesome to deal with. Here is a snipit of his email when I switched to him last year:
“I really appreciate the opportunity to earn your business. I have attached your quote.
Most insurance companies write only actual cash value policies. In the event of a total loss, you would only recieve what your company thinks your boat is worth. We write agreed value policies. If you have a total loss, you will receive the amount we have your boat insured for.
There are a lot of other differences as well. Please give me or my assistant Bill a call and we can go over all the coverage’s.
Thank you.
Bob Luellen
Worldwide Marine Underwriters
100 W. Saginaw Hwy. Suite C, Grand Ledge MI 48837
Toll Free 1-800-339-1235
Office (517) 627-8080
Cell (517)256-0734
Fax (517) 627-3355
Ha this sounded familiar so I searched my email and Bob sent me that exact email, verbatim, in 2016. I went with a different agent who I believe is a member on here.
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I have an agreed upon value for my boat that is $20k more than what we purchased the boat for 2 years ago. I pay a little more for the premium, but not by much. If anything happened that extra $20k would help me find a replacement immediately vs waiting for something comparable in condition/pricing to what I had.
Right, this is the problem I’m having. Adding an extra $20K doesn’t affect the premium that much. So why not add $5K more just in case a replacement is really more than I am thinking. And why not $5K more. Where do I stop?
Fishthump knows insurance.
Right, this is the problem I’m having. Adding an extra $20K doesn’t affect the premium that much. So why not add $5K more just in case a replacement is really more than I am thinking. And why not $5K more. Where do I stop?
If the additional cost is not a factor to you, I’d stop at the point the insurance company tells you they will not go any higher. Like others have said, On Agreed Value policies the insurance company will only allow you to go so high. Just make sure the policy is a Agreed Value policy first. If not you may be just paying higher premiums at no gain to you.
Don’t forget that the value of trailers and everything else has went up. Replacing something costs a very different amount than it did not too long ago.
When we upped the tritoon coverage, my agent asked me if we had seen what tandem axle tritoon trailers were going for. I bought ours for $3250 in 2019 brand new. I immediately went back to that same dealer’s site and saw $6100 for the same trailer with a shipment not coming until early August 
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