Consumer tips
Boat insurance
Is your boat insured for what it's worth?
Large valuable pleasure boat

Your boat may be appreciating in value

If you’re like most people, you probably assume that boats depreciate in value just like cars. But, that’s not always true.

According to BUCValu, an online boat value and pricing guide, some vessels hold their price for years before they show noticeable depreciation. Others drop rapidly right from the start. Some even appreciate in value, depending on current economic conditions, including those that specifically influence luxury industries.

PEMCO offers two coverage options that help put you in control of how a settlement is reached after a loss: 

Actual cash value. PEMCO insures your boat for its actual cash value, up to the limit stated in your policy. If your watercraft, trailer, and accessories are a total loss, we'd pay their actual cash value at the time of loss, taking into account age and depreciation. For most boats, that means you'd receive a settlement lower than the limit on your policy. Also, unless you change your limit, the insured amount doesn't account for atypical appreciation or upgrades like electrical equipment.

Agreed value. PEMCO would pay the agreed amount listed on your policy, regardless of depreciation in value over time. If you make improvements to your boat that increase its value, you'll want to adjust the agreed value on your policy.

If you’re in doubt about the value of your boat, check with a boat dealer, your local marina, or repair shop. To give you an accurate value, the appraiser likely will need to inspect your boat since condition and the specific type of equipment make a huge difference.