Boat Valuation re Insurance

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David of Essex

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Boat Insurance re Valuation
How many insure there boats for the replacement cost or current valuation. The reason for asking is do most insurers pay the sum insured in the case of a total loss or do they pay the true market valuation.
My insurance is due next month and with HKJ and from past experiences if I have added equipment to the boat and informed insurers they have pushed up premiums. Currently I would say I’m 30% over insured from the valuation.
David
 
David of Essex said:
Boat Insurance re Valuation
How many insure there boats for the replacement cost or current valuation. The reason for asking is do most insurers pay the sum insured in the case of a total loss or do they pay the true market valuation.
My insurance is due next month and with HKJ and from past experiences if I have added equipment to the boat and informed insurers they have pushed up premiums. Currently I would say I’m 30% over insured from the valuation.
David
Click to expand...

Check your wording but I think you will find HKJ are different to many Insurers in that you have an agreed value policy.
In the event of an insured total loss you get what you have insured for, which could be more than the current value of your boat.

Of course reducing the sum insured saves premium.
 
It would be difficult for insurerers to avoid paying an agreed value in the event of a total loss, providing the agreed value is reasonable.

In the event of a total loss insurers might pay the sum agreed. But despite having accepted a value when they colected your premium they would have the option to consider whether the sum insured was reasonable in the event of a total loss.

Say insurers could establish your boat could be replaced with the same make/model/year/equipment/condition for £50k and you had insured it for £75k. Following a total loss your insurers might reasonably argue the case in their favour.


It is certainly better to be slightly over insurered rather than under insured. If you state and agree a value that is too low you certainly would not have a chance of asking for more.

By all means agree a value that you would be happy to accept in a total loss. But there is potentially no benefit in being significantly over insured.
 
David of Essex said:
Boat Insurance re Valuation
How many insure there boats for the replacement cost or current valuation. The reason for asking is do most insurers pay the sum insured in the case of a total loss or do they pay the true market valuation.
My insurance is due next month and with HKJ and from past experiences if I have added equipment to the boat and informed insurers they have pushed up premiums. Currently I would say I’m 30% over insured from the valuation.
David
Click to expand...

Give these a try, you might not need to get a surveyor involved at all.
i have ( as a few others have ) changed to Y Yacht Ins. No survey req for my 32 yr old boat, the last survey i had was 10 yrs ago.
I do not insure for small claims / items & have a generous valuation

http://www.yyachtinsurance.com/OurUnderwriters.cfm
 
MartynG said:
In the event of a total loss insurers might pay the sum agreed. But despite having accepted a value when they colected your premium they would have the option to consider whether the sum insured was reasonable in the event of a total loss.
Click to expand...

If the op has a standard HKJ policy including agreed value they would have to show he lied about the purchase price at inception, HJK have skilled underwriters and will ask for a valuation report prior cover if someone requests a higher than normal value.

You shouldnt expect a fuss in the event of total loss, thats the whole point .
 
DAKA said:
If the op has a standard HKJ policy including agreed value they would have to show he lied about the purchase price at inception, HJK have skilled underwriters and will ask for a valuation report prior cover if someone requests a higher than normal value.

You shouldnt expect a fuss in the event of total loss, thats the whole point .
Click to expand...


The OP says he is 30% over insured.
 
It can happen.

If he bought his boat new or has kept it a long time.

An agreed value policy is exactly that .
As long as he didnt lie at inception and overstate the price paid.


HKJ is ahead of the field in this respect imho.

they will allow him to reduce if he wants.
 
Thanks for the replies. I did buy the boat new and have added extras along the way, I have informed HKJ as and when extras where added, the last time there was an addition to pay on the policy until the renewal date which is due shortly. I have decided to put the boat up for sale, when you take into consideration the value now and add any fees for selling you are left with a true valuation of the worth of the boat. So if I insured for the actual value that I could expect to receive now, could I in insurance terms be under insured?.
David
 
David of Essex said:
Thanks for the replies. I did buy the boat new and have added extras along the way, I have informed HKJ as and when extras where added, the last time there was an addition to pay on the policy until the renewal date which is due shortly. I have decided to put the boat up for sale, when you take into consideration the value now and add any fees for selling you are left with a true valuation of the worth of the boat. So if I insured for the actual value that I could expect to receive now, could I in insurance terms be under insured?.
David
Click to expand...

Yes, that is a risk with many policy covers.
BUT
If your policy is an agreed value policy (and I think it is, but check when you speak to them) then you have nothing to loose or any risk if you agree the new value :)
 
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