Reward for lost Kraken!
Join Date: Apr 2006
Thanked 141 Times in 138 Posts
Rep Power: 11
Re: Older Boat Insurance
"Courts have ruled that ACV is fair market value, and losses should be paid accordingly. This is no different than car insurance where you also get ACV after a total loss."
And anyone considering ACV should remember the phrase "DANGER WILL ROBINSON!" because each state, and often each policy, will have specifics as to how fair market value is to be defined. Then many insurers will just say "Oh, you had a 1975 Pearson 30, one of them sold in Kentucky last year for ten grand, so that's your value."
Well, no, state laws often require that if fmv is determined by what others have sold for, that the other sales are comparable vehicle, within 30 days not longer, within 50 miles not further, and so on. I've seen honored and reputable (ahem) insurers play BIG games with fair market value.
And Progressive, in their auto policies, will also issue AGREED value, but in the fine print they pay out agreed value OR fmv, whichever they determine to be less. Gotta read the fine print. Which is one reason few if any insurers will actually send you a sample policy to read before they take your dollar committment. It ain't pretty.