Does the marine insurance underwriter cover replacement cost or depreciated value in cases of damage or equipment loss on board a vessel?
As a general rule, insurers only pay replacement cost value if this was the value reported to the insurer and the lost or damaged property is actually replaced. Otherwise, recovery would be at the actual cash value (depreciated replacement cost). The CCGA Hull & Machinery insurance provides coverage for the value reported to the insurer, up to full replacement cost, but not exceeding $2,500 for Personal Effects and there must be a claim on the vessel itself before coverage is provided.
