Lightning hit my VHF antenna. It traveled down the wires and fried my Garmin chartplotters, radar, autopilot, and engine ECU. Total replacement cost: $25,000. My boat is a 2021 model. The adjuster applied “Depreciation” and offered me $8,000.
Key Takeaways
- ACV vs. Replacement Cost: This is the battleground.
- ACV (Actual Cash Value): Pays what the old used electronics were worth (depreciated). 5-year-old electronics are worth very little.
- Replacement Cost: Pays to buy brand new equivalent units.
- The “Partial Loss” Trap: Even if you have “Agreed Value” on the boat (for a total loss), the policy might revert to “ACV” for partial losses (repairs).
- Latent Damage: Lightning is tricky. Some systems fail 3 months later. Do not sign a “Final Release” immediately. Keep the claim open for “supplemental damage.”
- Haul-Out Inspection: You must haul the boat to check the hull. Lightning often exits through the hull (blowing a pinhole in the fiberglass) or the prop shaft.
The “Why” (The Trap)
The trap is “Depreciation Schedules.”
Marine electronics depreciate faster than cars. Insurers often depreciate them by 10-20% per year. After 5 years, they value them at near zero.
You need a policy endorsement for “Replacement Cost on Partial Losses” or “Hardware/Electronics Freeze.”
The Investigation (I Quoted Repairs)
I verified 2026 electronics prices.
- Garmin 8616xsv: $4,500 + Labor.
- Radar: $2,500.
- Autopilot: $4,000.
- ECU: $3,000.
I compared policies:
- Chubb: “Repair/Replace” coverage. No depreciation on electronics usually.
- Progressive: Offers “Replacement Cost Personal Effects,” but check if fixed electronics are “Personal Effects” or “Hull Equipment.” Hull equipment often gets depreciated on basic plans.
Comparison Table
| Policy Type | 5-Year-Old GPS Value ($5k New) | Labor Covered? | Payout |
| ACV (Depreciated) | $1,000 (20% value) | Yes | $1,000 + Labor |
| Replacement Cost | $5,500 (New Model Price) | Yes | $5,500 + Labor |
| Standard Homeowners | $500 (Sub-limit) | No | $500 |
Step-by-Step Action Plan
- Disconnect Everything: Do not try to power up systems. It can cause fire.
- Get a “Lightning Strike Survey”: Hire a surveyor or electronics tech to megger-test the wiring. You need proof the damage was lightning, not just “old age.”
- Check for Hull Exit: Look for a tiny blackened pinhole near the waterline or through-hulls. If you miss this, the boat sinks later.
- [IMAGE: Macro photo of a small burn mark/pinhole in gelcoat caused by lightning exit]
- Argue for “Upgrade”: If the old model isn’t made anymore, argue that the “New Model” is the only compatible replacement.
FAQ
Does a lightning rod help?
It helps direct the strike to ground (water) to save the hull, but the EMP pulse usually still fries the electronics.
Does insurance pay for a lightning ground system install?
No, that’s an improvement.