Insurance settlement and discharge.

[Rum_Pirate]

Re the initial offer figure, does Marine Insurance not work like Car Insurance? My car was written off after some prat drove into at speed while it was parked roadside. Insurance Company offered me a ridiculously low sum. I rejected it, so they came back with an offer based on average price of like for like replacements in my area. Used car values vary by region. Sound to me as though the Insurers are trying it on to keep their costs down.

Marine Insurance works on a declared amount.

 

[oldharry]

Marine Insurance works on a declared amount.

Not if they have made an offer below the declared amount. An offer is just that - negotiable.

 

[Rum_Pirate]

Not if they have made an offer below the declared amount. An offer is just that - negotiable.

They are trying to set the residual/salvage value.

 

[Rum_Pirate]

What would you accept:

Boat insured for 25k
Cost to get yard to do work over 30k.
Cost to do it ones self (patch mainsail, new standing rigging, new halyards, new mast) circa 21K+
Insurance offering 17.5K. Based on economic write off, repairs over 25k, salvage value of vessel set at 7.5k.
BUT I know nobody that would pay 7.5k or close in current condition here or in surrounding islands.

So what would you do ?

 

[Zing]

Insurers are lazy. The last thing they want to do is deal with the sale of the hull or in supervising repairs, so demand just that. i.e. that they repair it and you will subsidise repair costs by contributing to the boatyard, so the insurers quote is less than the insured value or they pay you the full policy amount and you buy the hull for a cent. They will go for the write-off as they probably are entitled to do, because it is easiest. Then you can sell it for a profit or fix it as you choose.

 

[ylop]

What would you accept:

Boat insured for 25k
Cost to get yard to do work over 30k.
Cost to do it ones self (patch mainsail, new standing rigging, new halyards, new mast) circa 21K+
Insurance offering 17.5K. Based on economic write off, repairs over 25k, salvage value of vessel set at 7.5k.
BUT I know nobody that would pay 7.5k or close in current condition here or in surrounding islands.

So what would you do ?

Thank them for their offer, tell them you will take the £25k and they keep the wreck (as I said several posts ago) and remind them that the storage fees are their responsibility from XXX (perhaps the date of the claim or today, or if you've already paid you can be generous and give them till the end of that). If you have an agreed value policy it is not your problem if you don't want the hull (which you said you don't). I don't understand why you are still entertaining their offers.

 

[Rum_Pirate]

Insurers are lazy. The last thing they want to do is deal with the sale of the hull or in supervising repairs, so demand just that. i.e. that they repair it and you will subsidise repair costs by contributing to the boatyard, so the insurers quote is less than the insured value or they pay you the full policy amount and you buy the hull for a cent. They will go for the write-off as they probably are entitled to do, because it is easiest. Then you can sell it for a profit or fix it as you choose.

OK but I know I can’t get 5l much less 7.6k as it is

 

[Zing]

OK but I know I can’t get 5l much less 7.6k as it is

But, better than what’s been offered.