- Joined
- Aug 29, 2012
- Messages
- 2,680
- Location
- Good Ol' US of A!
- Vessel Name
- Pau Hana
- Vessel Make
- 1989 PT52 Overseas Yachtfisher
I've always berated a point about insurance- that the client read their policy so they understand what they are getting into before they bind coverage.
This morning, we received their latest policy; here's a bit of their language regarding Agreed Valuation on a vessel:
Policies with the Premier Plus Option Package (Policy Effective Date: Oct. 5, 2012)
If you have the Premier Plus Option Package, you also have Agreed Value Coverage. If we determine your boat or outboard motor is a total loss, we agree to pay you the respective limit of liability shown on the Policy
Declarations applicable to your boat or outboard motor, reduced by the amount of any salvage if you retain the salvage.
If we determine your boat equipment or boat trailer is a total loss, we will pay, subject to all policy terms and conditions, the smallest of: 1) the actual cash value at the time of the loss, which means there may be a deduction for depreciation; or 2) the respective limit of liability shown on the Policy Declarations applicable to the boat equipment, or boat trailers.
Page 2
Please note that Agreed Value Coverage does not apply to any newly acquired watercraft as defined in the policy. If we determine your newly acquired watercraft is a total loss, we will pay, subject to all policy terms
and conditions, the smallest of: 1) the actual cash value at the time of the loss, which means there may be a deduction for depreciation; or 2) $30,000 for newly acquired watercraft.
As long as you properly pay premiums when due, Agreed Value Coverage will continue for three years from the date it is added to the policy. If, after three years, you wish to maintain Agreed Value Coverage on the
policy, you will be required to obtain an out of water survey of the insured boat by a registered marine surveyor. The Agreed Value Coverage will be removed from the policy, if you fail to provide us with a then current out of water survey at least 90 days prior to the third anniversary of the date Agreed Value Coverage was added to the policy. After Agreed Value Coverage is removed, if we determine that there has been a covered loss and the resulting damage to the property described in Property We Cover in Coverage TT — Your Property amounts to a total loss, we will pay, subject to all policy terms and conditions, the smallest of:
1) the actual cash value at the time of the loss, which means there may be a deduction for depreciation; 2) the respective limit of liability shown on the Policy Declarations applicable to the boats, outboard motors, boat
equipment, or boat trailers; or 3) $30,000 for newly acquired watercraft.
Translation- you purchase a 2008 37' Riviera ($400K) or a 1995 Marine Trader 35 ($105k) or a 2006 Camano Troll ($100k) and insure it with Allstate. You opt to purchase their Premier Plus Option package, so you have agreed value coverage.
With Allstate, you are required to have the vessel hauled and surveyed every 3 years, or you lose the Agreed Value coverage. It's right there in the policy language.
A Marine policy would not require a survey until the vessel is a least 10 model years old; then, the requirement for a hauled survey is either every 5 years (saltwater usage), 15 years (inland rivers and lakes), OR at the discretion of the insuring company.
Do I represent Allstate? Nope.
Am I mentioning the above to bash on Allstate? Nope.
Am I advocating you read you policy so you know what it covers? You bet your ass I am!
This morning, we received their latest policy; here's a bit of their language regarding Agreed Valuation on a vessel:
Policies with the Premier Plus Option Package (Policy Effective Date: Oct. 5, 2012)
If you have the Premier Plus Option Package, you also have Agreed Value Coverage. If we determine your boat or outboard motor is a total loss, we agree to pay you the respective limit of liability shown on the Policy
Declarations applicable to your boat or outboard motor, reduced by the amount of any salvage if you retain the salvage.
If we determine your boat equipment or boat trailer is a total loss, we will pay, subject to all policy terms and conditions, the smallest of: 1) the actual cash value at the time of the loss, which means there may be a deduction for depreciation; or 2) the respective limit of liability shown on the Policy Declarations applicable to the boat equipment, or boat trailers.
Page 2
Please note that Agreed Value Coverage does not apply to any newly acquired watercraft as defined in the policy. If we determine your newly acquired watercraft is a total loss, we will pay, subject to all policy terms
and conditions, the smallest of: 1) the actual cash value at the time of the loss, which means there may be a deduction for depreciation; or 2) $30,000 for newly acquired watercraft.
As long as you properly pay premiums when due, Agreed Value Coverage will continue for three years from the date it is added to the policy. If, after three years, you wish to maintain Agreed Value Coverage on the
policy, you will be required to obtain an out of water survey of the insured boat by a registered marine surveyor. The Agreed Value Coverage will be removed from the policy, if you fail to provide us with a then current out of water survey at least 90 days prior to the third anniversary of the date Agreed Value Coverage was added to the policy. After Agreed Value Coverage is removed, if we determine that there has been a covered loss and the resulting damage to the property described in Property We Cover in Coverage TT — Your Property amounts to a total loss, we will pay, subject to all policy terms and conditions, the smallest of:
1) the actual cash value at the time of the loss, which means there may be a deduction for depreciation; 2) the respective limit of liability shown on the Policy Declarations applicable to the boats, outboard motors, boat
equipment, or boat trailers; or 3) $30,000 for newly acquired watercraft.
Translation- you purchase a 2008 37' Riviera ($400K) or a 1995 Marine Trader 35 ($105k) or a 2006 Camano Troll ($100k) and insure it with Allstate. You opt to purchase their Premier Plus Option package, so you have agreed value coverage.
With Allstate, you are required to have the vessel hauled and surveyed every 3 years, or you lose the Agreed Value coverage. It's right there in the policy language.
A Marine policy would not require a survey until the vessel is a least 10 model years old; then, the requirement for a hauled survey is either every 5 years (saltwater usage), 15 years (inland rivers and lakes), OR at the discretion of the insuring company.
Do I represent Allstate? Nope.
Am I mentioning the above to bash on Allstate? Nope.
Am I advocating you read you policy so you know what it covers? You bet your ass I am!
Last edited: