Insurance Value

[Bigplumbs]

With the cost/value of boats going up and up. I am wondering if people are increasing the value stated on their Insurance Policies.

 

[hinch]

I will be next month when renewal is due as to replace like for like now is 25k up on purchase!

 

[DavidJ]

Yes I increased my S37 from £95k to £120k after seeing S34‘s going for the same price as mine. As long as you don’t exceed the original purchase price they seem happy.
Topsail quoted me another £200 for this. I wanted to change anyway because of Topsail wording and for a huge hike last year so now with Craftinsure for the same price as Topsails 95k quote and with the ‘at anchor unattended’ wording I wanted and 120k value. Both underwritten by N&G

 

[Sneds]

Boat insurance is a bit unique in that it indemnifes (?) you
It will cover your loss.
Ie if your boat cost you say, £1000 and you lost it, your loss is £1000 no matter what the boat is worth and that is what they will pay you.
Is my understanding correct?

 

[DavidJ]

Boat insurance is a bit unique in that it indemnifes (?) you
It will cover your loss.
Ie if your boat cost you say, £1000 and you lost it, your loss is £1000 no matter what the boat is worth and that is what they will pay you.
Is my understanding correct?

For some insurance companies yes but for most I’ve found there is a clause that says and I quote from my policy from Craftinsure.

In the event of total loss or constructive total loss, we will pay £120,000 or at our option, provide a replacement boat of a similar age, size and type.

I don’t like this clause, I can see endless arguments and I can’t really see an insurance company taking it up. I think it’s to offer some protection for them against over insuring.

I like N&G’s wording which is fair I think.

In the event of a total loss, we will either pay the agreed value of the vessel or, where you have declared a sum insured which is greater than 30% the current market price for the vessel, we shall have the right replace the vessel.