Insurance Question***HELP***

[rebson]

We have a 97 Nitro boat that was wrecked on the water. We paid 5500 and insured the boat for 5500. Now, the damages are 6300 to repair the motor and boat. The insurance is taking the charges and depreciating the charges, then, deducting the deductible and paying what is left. Is this correct?

They are saying the life of the boat is 26 years and it is 13 years old, so they are depreciating the charges by 50%. Why would you depreciate the charges? Also, what constitutes totalling a boat in Texas.

We are in Texas...HELP...please....I feel like my adjuster is an idiot!

Thanks,
Rebecca

[insurancepro]

Rebecca, This is why I'm on this site, What you have is a Actual Cash Value policy. In the event of a total loss your insurance company is only going to pay you what the boat is currently worth. If you had an Agreed value policy you would recieve the amount shown on the declaration page. In addition to that most companies will not depreciate partial losses on Agreed value policies. I hope our phone conversation will help you get this resolved. Feel free to call me back if I can help in any way. Good luck. Bob Luellen 800-339-1235