BOAT VALUES(FOR INSURANCE PURPOSES)

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mm1

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Hi all
i wonder in the present climate how much is our boat over insured,should i knock of 10/20/30 percent when it's up for renewell,also who set's these values,i presume the insurer would only pay(in case of total loss)what they think it's worth &not what it's insured for,regards m m 1.
 
As mine is due anytime now this was going through my mind. I have not changed the value of the amount insured for 7 yrs.
Looking at some prices i think 50 % is nearer the right amount to knock off.
But due you think that would change the premium much.
 
Hi i sure do ,if your insuring for alot less then the premium should drop like wise, m m 1.
 
if it doesn't reduce the premium much - far better leave the higher value. Don't forget that a payout for total loss would be the amount insured - its not like cars where they knock down the payout according to the latest glass's guide value.
 
Hi ok but surely an insurance company would not let you insure a£50.000 boat for a £100.000 would they,someone must have an idea of values, m m 1.
 
hi as a very quick rule of thumb I think you will find insurance @ 1% of value ie £200000-£2000, £100000,-£1000, 50000- £500 having said that experience/qualifications/no claim bonus ect will have a bearing, as to values I hear stories of boats selling at very strong money, asking £110000 selling £100000 and some people giving them away as in asking £125000 selling £80000 there is no norm.
 
As my boat is now over 20 years old I had to have a survey before I renewed this year. The surveyor gave a valuation as part of the survey and I insured it for this amount. Was roughly what I would have insured it for anyway but it's nice to have an independent valuation if the boat is ever a total loss.
 
[ QUOTE ]
Hi i sure do ,if your insuring for alot less then the premium should drop like wise, m m 1.

[/ QUOTE ]Wrong! you can still do a lot of damage to 3rd party's boat weither your boat is valued at 10,000 or 100,000. Your insurance is based onboth your likely calim and 3rd party claims. Having said that you might get a slight reduction on your premium but not as much as you think.
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Artificial Intelligence is no match for Natural Stupidity
 
[ QUOTE ]
Hi ok but surely an insurance company would not let you insure a£50.000 boat for a £100.000 would they,someone must have an idea of values, m m 1.

[/ QUOTE ]They will let you insure for a high value (higher premiums) BUT if they have to pay out for total loss they will only pay the market value and they will take the low end as their base value unless you have a recent valuation/condition survey from a recognised surveyor
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hammer.gif
Artificial Intelligence is no match for Natural Stupidity
 
Some covers are written on an agreed value wording.

You write it off and you get the schedule value.

There are very few stolen boats and very few write offs, you are correct to think about reducing a boats value as you will benefit from a premium saving especially if your policy is one that is not an agreed value wording.

Haven knox-Johnston Haven Plan wordings are very good value , not as cheap as some but do include the agreed value wording.
 
As an example, value insured fell this year by 25% based on the survey that the insurers required. For a agreed hull value policy, the premiums dropped by 24%, which amounted to a couple of hundred quid. I would rather have kept the orginal value if I had been given a choice.
 
My insurer would only cover the value based on the amount I paid for the boat.
Marine insurance works differently to car insurance, it is meant to indemnify you against loss rather than replace the boat.
The only way my insurer would allow me to insure for a value higher than the purchase price was to have a surveyor value it
 
Hi all
thanks for all replies,it's a very interesting topic,i am pondering if there is such a word,cheers m m 1.
 
Depending on the policy you can insure a boat for more than the market value, you do pay a higher premium of course.

I dare say if the boat is worth 50k on the open market and you insure it for 100k and it sinks in unusual circumstances the insurance may look at it unusualy closely before they pay out.

What you recently paid for it or market value whichever is the higher i would not have thought unusual.
 
Have just received 4 quotes for renewing insurance on my boat.(30K)Most expensive was £485.00.cheapest was about £200.00.Despite giving myself a headache going through fine print cover is more or less the same overall.Only real difference was that one company excluded single handed use and a quick email soon got that claused removed.
Partially/totally online companies were definately cheaper overall than broker based stuff.Will be remaining with my original insurer even though they were not the very cheapest simply because do not want to spend ages filling in forms to save £30.00 quid.
 
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