How much should I insure my boat for?

[1bobt]

That seems like a very expensive rig?
Can you break the figure down for us out of interest?
Commiserations if this incident is still a sore point.

But its not unknown for the value of the whole to be less than the sum of replacing some of the parts new.
A ten year old car would often be a write-off if it needs a new engine fitted fr'instance...I know this, I should have written mine off once!

You can up the value of your insurance, but the insurers are still free to write the boat off at its 'market value' which you may have to argue about.
It's good to have some kind of evidence of the value. If you have any doubts it is a good idea to have a chat with a knowledgeable broker and explain why you place a higher value on your boat. I have a 'modern classic' bike which has increased in value because I know I could sell it in Germany or Italy, I'm happy to have paid a little more for the 'agreed value' insurance through a specialist broker.
Whereas with my car, I take the cheapest quote from any outfit where the service seems reasonable. I know full well they will base any payout on a trade-in price for an average example of the same age and model.

Theres a couple of posts on the Livaboard .Am I being churlish . And it not getting better at olympic marine.

cheers bobt

 

[TradewindSailor]

There are different ways to value yachts and insurers will need to know what risks they are taking on.

Look up the definitions of 'Market Value' and 'Replacement Value' on the internet. Often insurance brokers decribe them very well ..... www.Pantaenious.co.uk is a good place to start.

My understanding of 'Market Value' is the price that is agreed by a willing buyer and a willing seller with NO PRESSURES TO SELL OR BUY a similar yacht with similar specification, outfit and location. One could argue that the current depressed market is due to 'pressure to sell' and therefore 'current market price' is irrelevant.

My understanding of 'Replacement Value' is the cost of replacing your yacht with one of a similar specification. The difference between replacement value and market value will depend on the age, type, and number of similar yachts.

You must look at your insurers definitions of these valuations and look at the contract very carefully.

Insurers are notorious for paying the absolute minimum ...... and they are aware of how they can apply pressure on you to settle, i.e. cost and time for arguing through the Court.

'Agreed Value' is probably the best route to go. That way both sides know what the maximum payment is going to be. But this should be close to either the 'Market Value' or 'Replacement Value'. If it is much more the insurance company is likely to cry foul on a claim of total loss.

Be aware ..... there are insurers out there that will look at the sold price on sites like Yachtworld.com for a 'similar' yacht, and make any alterations for equipment at the current market price of similarly aged equipment. This is legally unsupportable ..... unless you have agreed to it. The 'sold' price takes no account of the pressure to buy or the pressure to sell, nor of the surveyor's findings of material differences between the brokers specification of the yacht and the surveyors survey.

At the end of the day, unless you have agreed otherwise, you are legally entitled to be put back into a similar condition prior to the accident, i.e. with no LOSS and no GAIN.

PS I am neither a lawyer, insurance underwriter, loss adjuster, or insurance broker so accuracy of the above should be taken with a pinch of salt.