Here is a copy of an email we recently sent to all of our American Modern policyholders. If you hold an American Modern policy through another brokerage, these policy enhancements are still available to you as well.

Dear Valued Client,

I hope that this letter finds you and your family doing well and enjoying the summer boating season. I want to make you aware of a few endorsements that are available to you on your watercraft policy that is underwritten by American Modern Insurance Group (AMIG). AMIG is an A.M. Best A+ rated company that continues to offer the most comprehensive high performance boat policies with endorsements that help eliminate gaps in insurance coverage.

Extended Parts Replacement Coverage (full coverage required):

For partial losses, the standard allowance in your policy covers replacement cost on parts that are 2 years old or newer. This endorsement extends the replacement cost coverage for parts that are up to 10 years old. Partial losses on parts that are older than 2 years old and not covered by this endorsement are currently paid for by the insurance company on an actual cash value (ACV) basis. The ACV differs from replacement cost in that the ACV depreciates the cost of a new part (of like and kind) over the age of the part that was lost, whereas replacement cost will pay for the new part and will not depreciate the cost over time. This endorsement can be added to most policies for an additional premium of between $40 and $200 per year, depending on the boat type and value.

Example: An outdrive unit is irreparably damaged when the insured unknowingly hit a submerged object. The outdrive was 5 years old and valued at $13,000 by the insurance adjustor (replacement cost less depreciation). The cost of a new drive of like and kind is $20,000. If the insured did not have the extended parts replacement endorsement, then he would have to pay the difference between the insurance company payout (ACV less deductible) and the actual cost of the drive. With this endorsement, the full cost of the drive replacement would be paid for (less deductible) by the insurance company.

Diminishing Deductible (full coverage required):
AMIG offers a diminishing deductible endorsement that reduces your hull and machinery deductible by 25% at renewal for each loss-free policy period. The endorsement can be added to most policies for an additional premium of approximately $40 per year or more.

Example: An insured's hull and machinery deductible at policy inception is $5,000. After one year of zero claims, the deductible could be reduced to $3,750 at policy renewal provided the insured added this endorsement to their policy. If the next year was claim free, then the deductible could be reduced to $2,812.50 (25% of the revised deductible).

Yacht Plus (full coverage required):

If you don't already have it, this package endorsement increases several of the coverages that may be offered under your existing policy, including towing and emergency assistance, personal effects, and travel loss reimbursement.

Thank you for your continued business and support. I look forward to working with you in the future. Please contact my office if you would like to add an endorsement, have any questions regarding this letter or your insurance policy.


Stacy Shute
Chief Executive Officer
License 0E09119
480-357-9663 ext 101