Repower affect on insured value

[P-Dogg]

I'd like to get some idea of how a repower would affect the value of a boat for insurance purposes. Let's assume installation of Jasper reman small blocks and rebuilt transmissions cost $20K in parts and $5K in labor. Also assume that new engines are closed-cooled, whereas old ones weren't. What is a reasonable increase in the declared value of a vessel that has said improvements?

[Stripermann2]

I don't think it will have any appreciation in value. For me, I know that my boat, along with many others are what...worth between 10-20K ? The improvements I make are for me. You could check with your insurance company and ask about it.

A 1974 Pinto with a $2,000 sound system is still worth $00.00 lol

[prowlersfish]

You won't like my answer but I will give it anyway . It really won't add much to the value . Why ? . You had a boat with good running engines . one went bad and you replacing it as a repair . Your not up grading it to a newer improved engine or the latest and greatest , fuel injected ect. or Diesel .
to your
While the engine will be a reman and still a replacement of what you have not a real improvement so to speak .

With that said it would help if you where selling and if something was to happen to your boat you can argue that these were just replaced and should not be depreciated like your 30+ YO engines would have .

talk to your agent they may let you raise the valve you never know

[P-Dogg]

may let you raise the valve you

I don't want to pay more for insurance than I need to, and I don't want to over-value the boat. I want to value the boat according to its replacement cost, which is the guidance that I seek.

Most of my experience has been with airplanes. The issue there is this: Assume that you have a plane worth $100K, and you insure it for $120K hoping to make money if it is totaled. And assume that if it is damaged 75% of its insured amount, the insurance company considers it totaled. If you had it insured for the correct amount and it suffered $80K in damage, you'd get a check for $100K-deductible. Instead, because it is only damaged 66% of its insured amount, you are down months while it is repaired, then you own a wrecked airplane, whose value will be lower at sale just because it was once wrecked (but is now fine).

Boat insurance companies must work similarly. There is a formula which determines when a boat is totaled, which doesn't require the boat to be dust or ashes. I want to be insured enough to replace my loss, not the owner of a boat that should have been written off....

[bjanakos]

That's pretty much what surveys are for. If you had a recent survey, the same surveyor can come out and document your improvements and add it to the survey as an addendum. He can also asses a new fair market value.

[BobCT]

Unfortunately, they don't consider things like that an "upgrade" just normal maintenance. Unless you bought and insured the boat with one of both engines not working the new engines wouldn't get factored into the value. Upgrades are limited to non wear and tear items, (teak flooring for example).