Like cars, a boat's market value decreases over time, however. Thus, the most you may insure your boat for is its fair market value. In most cases, insurance companies re-evaluate the market value of the boat every three years. Therefore, the agreed value should closely reflect the current market value of your boat as it ages. In the event of a partial loss, where there is less serious damage, property claims are normally handled with no deduction for depreciation.
Some companies differ onthis, however.
Your policy should tell you how your insurer will settle claims for repairs or payment, or ask us for clarification. Actual cash value means you will be paid the market value cost of your boat minus depreciation. Once your boat is over 15 years old, most boat policies revert to settling losses on an actual cash value basis. This includes items not intended for the normal operation of your boat, such as portable TVs, cellular or portable phones, stereos, radios and cameras. For example, tools stored and used only in your boat may qualify as covered auxiliary equipment, whereas the same tools left in your car are considered to be personal effects.