I agree with everything James said except for the bit about ISO forms. Yes, ISO forms are pretty standard for Homeowners, Renters, and even Commercial General Liability. For boats, however, I have not seen the standard ISO forms, meaning that each carrier's policy may differ, even substantially. That means that one should not rely on having standard policy language that is only altered by endorsements.
Just my $.02 worth, Bruce Whitmore (847) 404-5092 (mobile) bwhitm...@sbcglobal.net On Monday, November 11, 2019, 7:01:38 PM EST, James Nichols via CnC-List <cnc-list@cnc-list.com> wrote: Some terms to know if you are dealing with a claim. Replacement Cost Value (RCV) - this is the cost of buying a new boat or part in today's dollars. You probably have your boat insured for this amount. Actual Cash Value (ACV) - the amount that a boat or part is worth after depreciation is applied. Depreciation - everything has an average expected lifespan. Similar to how cars lose value (depreciate) the minute you drive off the lot, so do boats. Boats depreciate as a whole, similar to the way cars do. But parts, like winches, also depreciate individually. Most parts are estimated to last less than 20 years. For example cushions may have an average life of 5 years. The wood table 15 years, the engine 20 years. Etc. The hull, mast and stainless tubing will probably have longer lifespans estimated. 35-50 years. Depreciation is calculated by dividing the age of the item by the expected lifespan. So 3 year old cushions will be depreciated by 60%. Recoverable vs. non-recoverable depreciation - your policy may be a RCV policy or it may be an ACV policy. If you have an ACV policy, all you ever get is the ACV of the part being replaced. So you can not recover the depreciation. If you have a RCV policy, they hold the depreciation until you do the repairs or replace the item meaning you recover (are reimbursed for) the full cost to repair or replace the items. Once you do the repairs, you submit your invoice and they reimburse you. I have a lot of experience with home owners claims, and not as much with automotive or boats, but from my understanding some policies for boats and autos always depreciate materials and materials are always ACV and only the labor is recoverable. Check with your agent to find out the exact details of your policy. You can also nearly always add endorsements to your policy to make it pay for 'everything' but that drives up the cost of the policy. >From what I have seen in my 10+ years in the industry, most people aren't >insured the way they think they are which is the reason why some of you left >your previous providers and went with new providers. Nearly every policy provided by all carriers is identical, because they all pretty much just use a standard ISO form. But the agent at your new insurance policy listened to the issues you had and added endorsements to provide coverage to make sure you spent have the same issue again. If you get coverage review requests from your agent, you should probably take them up on it. They probably send you a request about once a year. I know this was long, but I hope it cleared up some questions about what and why things happen in a claim. James_______________________________________________ Thanks everyone for supporting this list with your contributions. Each and every one is greatly appreciated. If you want to support the list - use PayPal to send contribution -- https://www.paypal.me/stumurray
_______________________________________________ Thanks everyone for supporting this list with your contributions. Each and every one is greatly appreciated. If you want to support the list - use PayPal to send contribution -- https://www.paypal.me/stumurray