How to insure a boat properly?

The first and most common policy is called a Market Value policy or can also be referred to as replacement cost.
A Market Value policy will typically carry a premium of 1.5% of the boats current value, depreciated annually.
But what does the boats “current value” truly mean?
I’ll make another video soon that explains how to value a boat, and what a complete disservice NADA actually is for boat values, and how it’s purpose is to benefits banks and insurance companies vs you, but to keep this topic moving forward “current market value” otherwise known as ACV (actual cash value) will look like this: 100% of NADA average value based on equipment and horsepower. This is what your premium coverage will be based on, but what happens at the time of a total loss.
This is where this selection gets tricky. See, this is the most affordable policy for a boat, but it is also the least desirable choice at the time of a complete loss.
This is because if you total your boat, your payout will only be 60-70% of it’s current value according to NADA which will be the average retail of base boat with no adds, which means no additional value for features the boat is equipped with.
Your premium is based on NADA’s make-believe average retail value based on equipment.
The second policy option is called Agreed Value or can be referred to as Replacement Cost.
The premium for this coverage will typically be a little more, roughly 2% of the boats agreed upon value depreciated annually.
Compared to an agreed value which uses NADA to depreciate invoice annually since it was new, using ZERO fact based collections of registration data, and by no means taking into consideration condition or hours, this value is determined by you and your agent. Normally you can reasonably increase 25% or more of the average retail value with all the options and upgrades added.
Moving on: The last and final option is only pertinent when a boat is brand new. It is called Total Replacement Cost. This will run roughly 3% or more of the purchase price annually however will cover 100% of the same make and model boat even if the new boat’s cost has inflated. In the words of my insurance agent, “This will replace a like make/model replication in full.”

Thanks & I'll see you on the water,
*Hablo Espanol, pedir Brandon

Brandon Johnson
18095 N State Highway 5
Sunrise Beach, Mo 65079

573-374-7172 office
573-552-1725 cell- Text Only

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