For partial losses does depreciation apply?
Yes.
GEICO Marine’s schedule of depreciation- it starts at the 20th year from new, at 10% per year n to a maximum of 80% depreciation.
The Partial Waiver of Depreciation Endorsement limits depreciation on certain items, but not all.
“PARTIAL WAIVER OF DEPRECIATION
FOR PROPERTY REPAIRED OR REPLACED
Under SECTION IV – COVERAGES, A. HULL AND EQUIPMENT, 4. Limit of Insurance, c. Amount Paid to “You” In Event of Loss, (2), Repairs for Partial Loss is removed in its entirety and replaced with:
(2) Repairs for Partial Loss
“We” will pay the reasonable cost of repairs or replacements, in accordance with quality marine repair practice, less depreciation. Depreciation shall be calculated at 10% for each year beginning with the 20th year from manufacture. In all cases, there shall remain no less than 20% residual value regardless of age. In the event of damage to plywood, plastic, fiberglass, metal, cement, or other molded material, “we” are obligated to pay only the reasonable cost of repairing the damaged area, in accordance with quality marine repair practice. If there is a covered loss requiring repainting of an “insured boat,” “we” will pay the cost of repainting or resurfacing the damaged area in accordance with customary marine repair practices so that the area repaired will match, as closely as practical, the original color. “We” have the option to make or reimburse “you” for repairs or replacements, or to pay “you” directly based on an agreed estimate of loss. Repairs and replacements will be made with like kind and quality.
“We” will not deduct depreciation for repair or replacement of the following:
a. fiberglass, plastic or wood hull materials;
b. masts and spars;
c. metal supports and framing for attached towers, T-tops and hard tops;
d. bow, stern or deck railing; and
e. glass
In the event of damage to a “dinghy” with cost of repair exceeding the “actual cash value” of the “dinghy,” the most “we” will pay is the “actual cash value” as determined by industry reference materials including, but not limited to, the N.A.D.A. book, the BUC Used Price Guide, and ABOS Marine Blue Book.
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All other terms, conditions, and agreements of the policy remain unchanged.”