Does anyone here REALLY understand how marine insurance works? For instance, consider commercial insurance on a building. Let's say you insure the building for $100,000 and then have a fire and it is a total loss. It turns out the building was actually worth $200,000. So the insurance company says you were 50% insured, and pays you 50% of your $100,000 of coverage, or just $50,000!
I paid just $6500 for my boat, and have just liability insurance for a couple of hundred dollars. If I wreck your boat or hurt you or someone on my boat it is covered to the policy limits. However the damage to my boat I have to pay for. If you damage my boat, I'm going after you or your insurance!
I may spring for damage coverage on my boat now that I put a lot of time and money into her, and the market value is now considerably more than when she was lying there in pieces.
Gary H. Lucas