Ian_Rob
Well-Known Member
What value do forum members insure their boats for - Current market value, Current replacement value or what? What excess are members accepting?
Ian
Ian
Insurance Value
- Thread starter Ian_Rob
- Start date
Talulah
Well-Known Member
Replacement value which I also see as Market value.
rob2
Well-Known Member
I'm pretty sure that insurance companies in a total loss situation will pay out either the insured value or the market value, whichever is the lower. As a consequence you need to insure for what you would advertise as an asking price if you were selling, otherwise you can guarantee you will lose out. However, it is likely that the insurers would then offer a lower amount as their estimate of market value - but at least your negotiations start at the right place. And don't forget all the inventory you would be likely to lose in such an event!
Rob.
Rob.
sailorman
Well-Known Member
I have "An Agreed" value.
That happens to be at the moment,above current market value but if the rig goes over the side ( a high replacement value as a % of the total ) i want to be covered NOT written off.
wotayottie
Well-Known Member
Too much. Most people are in a dream about what their boat is worth. Had mine 4 years now and the Moody I sold has gone down by 25% in that time period.
Koeketiene
Well-Known Member
As per surveyor valuation report (though I think at this moment in time this is more than current market value but not above replacement value).
Excess stands at £1,000 - this is to keep premium down.
KellysEye
Well-Known Member
We had an agreed value for the price we paid for the boat.
pvb
Well-Known Member
That applies to cars, but most decent boat insurance works on a declared value.
duncan99210
Well-Known Member
The market is both too volatile and too dependent on what the boat inventory is for there to be a true 'market value' for boats unlike cars, where they're all pretty much the same. This is why most insurers ask you to put a value on the boat and that is the insured value. This will be, in most cases, more or less what you paid for it with a bit of adjustment over time. Our excess is £500 which means that we'd be covered for a major incident but look after things ourselves for most of the little knocks we get.
V1701
Well-Known Member
Both boats I've had insured for what I paid for them, tried to insure the first one for more than I paid but that wasn't possible as didn't have a survey. Made £5.5k on that one, knew it was worth more than I paid...
Richard10002
Well-Known Member
Replacement value is exactly the amount it would cost to replace the boat with one, effectively, exactly the same.
Market value is exactly the amount the the boat would sell for in the current market, given a reasonable period within which to market the boat and find a hypothetical buyer.
I fail to see how there can be any difference between the two?
I can, however, see how the above value could differ from the price paid.
sailorman
Well-Known Member
A problem is being considered "under insured" by your insurer in the event of a large % claim. writing off the boat for a lost rig & sails
Otter
Well-Known Member
Agreed, you then get hit by the quite legitimate average clause - your boat worth £40,000 but you insured for £30,000 to keep premiums down, you make a claim for £10,000 collision damage and the insurer knocks 25% off due to the average clause - it is used a lot in house contents cover and marine insurance because total loss is extremely rare. Very difficult to prove in marine cover unless its a KVI.
theoldsalt
Well-Known Member
The price you sell a boat depends on the level of "extras" included. This also applies to buying a boat. Then there is the condition of the vessel at the time of purchase or sale.
However the insured value can be quite different as this will depend on all personal effects and extra equipment added, as well as improvements made during ownership. Boats are rarely sold "complete" as most owners retain effects and equipment for a future purchase.
It is not only important to reflect a possible reduction in value due to "market" prices but also increases due to improvements although an insurance company will almost certainly want proof before covering a significant increase in value.
A few years ago I came across a very sad situation where an owner had bought a boat at a very low price and insured it for the purchase price. Over a couple of years the work done and equipment added increased the value by 50%. The vessel caught fire and was a total loss days before the owner decided to increase the insured value.
However the insured value can be quite different as this will depend on all personal effects and extra equipment added, as well as improvements made during ownership. Boats are rarely sold "complete" as most owners retain effects and equipment for a future purchase.
It is not only important to reflect a possible reduction in value due to "market" prices but also increases due to improvements although an insurance company will almost certainly want proof before covering a significant increase in value.
A few years ago I came across a very sad situation where an owner had bought a boat at a very low price and insured it for the purchase price. Over a couple of years the work done and equipment added increased the value by 50%. The vessel caught fire and was a total loss days before the owner decided to increase the insured value.