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Writer's pictureRichard Taylor

Navigating Diminished Value Settlements for Boat Damage

Whether you’re cruising through tranquil waters or enjoying a day of fishing with friends, owning a boat can bring endless joy and adventure. However, accidents happen, and when your beloved vessel sustains damage, navigating the process of seeking compensation can be daunting. One avenue for reimbursement that boat owners often overlook is diminished value settlements. In this guide, we’ll explore what diminished value settlements entail and how you can determine if you’re eligible to pursue one for your boat.

Understanding Diminished Value Settlements

Diminished value refers to the reduction in the resale value of a property, such as a boat, following an accident or damage. Even after repairs, a boat may not command the same price it would have if it had never been damaged. Diminished value settlements aim to compensate the owner for this loss in value.

Factors Influencing Eligibility

Several factors come into play when determining eligibility for a diminished value settlement:

  1. Insurance Coverage: Review your boat insurance policy to see if it covers diminished value. Not all policies include this provision, so it’s crucial to understand your coverage.

  2. Cause of Damage: If the damage to your boat was caused by someone else’s negligence, such as a collision, you may have grounds for a diminished value claim.

  3. Extent of Damage: Significant damage that substantially reduces the value of your boat is more likely to result in a successful claim.

  4. Professional Assessment: Hiring a marine surveyor or appraiser to assess the diminished value of your boat provides valuable evidence to support your claim.

  5. State Laws: Laws regarding diminished value claims vary by jurisdiction, so research the regulations in your area or consult with a legal professional.

  6. Timeliness: Promptly reporting the damage and filing a claim is essential to preserve your eligibility.

  7. Negotiation Skills: Successfully obtaining a diminished value settlement often requires negotiation with your insurance company or the party responsible for the damage.

Pursuing a Diminished Value Settlement

If you believe you’re eligible for a diminished value settlement for your boat, follow these steps:

  1. Document the Damage: Take detailed photos of the damage to your boat and gather any relevant evidence, such as witness statements or police reports.

  2. Get a Professional Assessment From DVAC: Your Personal Consultation will address the following: – A comprehensive review of repair costs and estimates. – An objective determination of whether your vessell qualifies for diminished value or qualifies for a total loss settlement. - An approximate range of compensation you may be paid for your loss.



  1. Review Your Insurance Policy: Understand your coverage and any procedures you need to follow to file a claim for diminished value.

  2. File a Claim: Submit a claim to the insurance company of the party responsible for the damage, provide evidence to support your request for compensation.

  3. Negotiate: Be prepared to negotiate with the insurance company or responsible party to reach a fair settlement.


Suffering damage to your boat can be disheartening, but pursuing a diminished value settlement can help mitigate your losses.

Our Certified and Licensed Diminished Value Appraisers provide you with personalized up-to-date information regarding your diminished value claim. We will make sure you understand the procedure and what possible compensation is owed to you.


Contact DVAC at 877-879-0101 or www.mydvac.com

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