I called BoatUS Marine Insurance and spoke with an underwriter just now. You are correct. The only additional distinction is that the depreciation applies to parts, not to labor. So, as I understand it, it my boat suffered a lightning strike and the repair estimate was $50,000, the depreciation (which at this point WOULD be 80%, indeed) would apply to the replacement parts. It would not apply to the labor.

Much of Blue Note's electrical system has been replaced at this point, certainly within the last twenty years. So depreciation would not apply to those parts, providing I could document that they were less than twenty years old (a good reason to keep ALL your receipts!) But, insurance companies being what they are, I would expect to have a fight on my hands, and for them to use the policy language to try to evade paying for as much as they could in the way of repairs and replacements.

The concern expressed earlier in this thread is appropriate. Insurance companies will always 1) charge as much as they can possibly get away with and 2) pay out as little as they can on claims. I had a minor fender-fender recently with my old Toyota truck, and the process of getting them to pay for a proper repair has been convoluted to say the least. Ask Quentin about his opinion of insurance companies.... he's had more contact with them then he would like to have had.

All in all, a very instructive thread, to say the least.