Name:   MartiniMan - Subject:   This is not how it works Date:   3/14/2019 8:59:15 AM (updated 3/14/2019 9:14:42 AM)

BoatUS will pay for repairs or replacement up to your agreed hull value.  I had Progressive for many years and their insurance will indeed pay replacement costs, but only for repairs to return your boat to service and only if it's less than the total value of the boat. So if you ruin an old motor worth $3K and it costs $8K to replace it and your boat is worth more than that they will pay.  But I can assure you they are not going to pay for a new boat if you trash an old one.  So for example, I own a 2001 Chris Craft 262 that's worth around $15K.  If I wreck it and do more than $15K in damage they are going to total the boat and pay me $15K or whatever the current value is.  If I ruin the lower unit and it costs $10K to replace they will pay for that.  But they aren't going to buy me a $135K boat because I wrecked a $15K boat. 

They do offer total replacement costs as an option and additional premium but it comes with a few significant hitches.  Here is what it says on their website:

Available for purchase if you’re the original owner of your boat and it’s no more than one model year old. If your boat is totaled within 5 model years, we’ll buy you a new one or give you the amount that you originally paid for your totaled boat—your choice. If you’re outside the 5 model-year window, we will still give you the original purchase price of your boat.

Example: You bought a new boat 3 years ago for $15,000, but it’s now only worth $10,000. If you have a total loss, it’s going to cost you at least $15,000 to buy a brand new one. So, we’ll spend the $15,000 and save you $5,000 in depreciation.

It comes at an extra cost that will be determined by how much you paid for the boat.  I bought my Chris Craft 15 years ago used so it would not be an option for me.  There is no free lunch here with Progressive so you have to decide if you want to pay that extra premium to get your money back.  I don't know what the cost would have been for this optional add-on but it doesn't help anyone that buys a used boat, which is most of us. 

As for State Farm I looked at their website and again, they will pay replacement costs for repairs but they are not going to buy you a new boat if you wreck an old one.  This is from their website:

Our boat insurance policy provides for replacement cost coverage on repairs. Total loss claims are settled on an agreed value basis, meaning you will be reimbursed based on your policy coverage limits.

And I can assure you they are not going to allow me to insure a $15K boat for $135K even if I am willing to pay the premium.  That is a recipe for fraud.  Buy a $15K boat, insure it for $135K, wreck it two days later and get a brand new boat.  I'm sorry but they are not going to do that.  That's why they call it insurance.