As we've all seen, yacht values are subject to market changes, and that has an impact on what kind of insurance you should carry. "Just as the value of a boat today may have dropped maybe 30 percent, in another year the boat may increase in value," says Cary Wiener, president of Pantaenius America Ltd. (www.pantaenius.us). "The result is that the owner may find himself not able to replace the boat [with the replacement value outlined in his insurance policy] in a market on the upswing. Underwriters don't like to increase the value of a boat once they're insuring it, unless there have been monetary improvements made." A combination of survey reports of the condition of the yacht, market research of online pricing of similar vessels, and sales history should be able to establish a replacement value upon which all parties can agree. But be careful not to revise the value downward to cut costs now, only to be underinsured later.