Insurance Market value or Agreed value

[Sandyshore]

A lot has been discussed in the last few months on Insurance just had my renewal invite and find my insurance is market value.
As I understand the insurers will only pay the reasonable market value if I claimed.
Not a big boat I had believed that as I was Insured for£20,000if I lost the vessel I would get a full pay out or near to the amount not like car insurance and a book price.
A friend involved in insurance not boating may I add confirmed that Agreed value is that .Compared to market which relies on average prices such as car trade book . He did say most policies though have in his opinion some exclusions and limitations.
He mentioned the FCA had issued something on market value has anyone seen this and able to comment?

 

[jfm]

A lot has been discussed in the last few months on Insurance just had my renewal invite and find my insurance is market value.
As I understand the insurers will only pay the reasonable market value if I claimed.
Not a big boat I had believed that as I was Insured for£20,000if I lost the vessel I would get a full pay out or near to the amount not like car insurance and a book price.
A friend involved in insurance not boating may I add confirmed that Agreed value is that .Compared to market which relies on average prices such as car trade book . He did say most policies though have in his opinion some exclusions and limitations.
He mentioned the FCA had issued something on market value has anyone seen this and able to comment?

You've somewhat answered your own question. Some yacht insurance policies pay agreed value upon total loss; some pay market value. Each to their own but I much pefer agreed value because it means I can buy a new boat not a secondhand one. It costs more in premium of course: there is no such thing as a free lunch. But maybe not that much more if you're a nice risk

I haven't looked for anything from FCA on this but I'm not sure there is much they can add to the basic position as described above

Yes indeed many policies have exclusions and limitations, and there are 100+ posts on this in the last 12 months. Tread carefully and make sure you're clear about what you're buying

 

[Sandyshore]

Thank you for your reply Jfm I have looked today and will steer clear of market value insurance as it does not appeal to me.
My current policy from a Shrewsbury based insurer will not be renewed.