Repairable write off

[Sailingsolitaire@outlook.]

Question with insurance companies . I have a 70ft length on water steel boden .. after discussion with the independent assessor they are looking at repairable write off .. if they decide on repairable write off do I have to take it or can I demand the boat be repaired instead..

 

[clyst]

Why not have an indepth discussion with your insurer .

 

[Wing Mark]

If they are 'writing it off', they should be paying you the insured value of it.
The 'repairable' wreck is then theirs.
They will sell it. Maybe to the original owner, maybe at auction.

It's less risk, work and hassle for the underwriters to pay out the sum insured and sell the salvage for what they can, than to deal with a long claims process which might overspend, or they think will cost them more.

Just because they think it's repairable does not mean it makes financial sense to do so, it may only be worth doing by an amateur who doesn't charge for his time, or someone who has free storage/work space.
Or it may be not worthwhile.

 

[Graham376]

There's often the option of payment in lieu of repairs so in your case try for difference between insured value less the scrap value they're likely to receive. This could be attractive to them as it saves them having to dispose of boat and storage costs until sold.

 

[Biggles Wader]

If your insurer is saying that it could be repaired but the cost of those repairs is likely to be more than the insured value-----hence write off. Or is it a third party insurer you are claiming off?

 

[thinwater]

If your insurer is saying that it could be repaired but the cost of those repairs is likely to be more than the insured value-----hence write off. Or is it a third party insurer you are claiming off?

Interesting. But eve if it is 3rd party damamge, it's hard to claim the boat is worth more than you insured it for. Certainly, you would need an assessment of per-accident value.

 

[bedouin]

In general insurance is only about value - you don't usually have any rights as to how the insurer chooses to settle the claim. So if he chooses to write off the item and pay you its full value then he is entitled to do so.

They should offer you the chance to buy the vessel back at a fair price. So if you think it is repairable then you should ask to do that and repair it yourself.

Note an insurance company deciding to repair a boat would be taking a greater risk than the owner commissioning the same repairs so it may well be cost effective for the owner to buy the wreck and repair where it wouldn't be for the insurance company to do themselves.

 

[Tranona]

Question with insurance companies . I have a 70ft length on water steel boden .. after discussion with the independent assessor they are looking at repairable write off .. if they decide on repairable write off do I have to take it or can I demand the boat be repaired instead..

It is important to know if you are claiming under your own all risks insurance or making a claim against a third party (or that party's insurer).

If it is your insurer then the claim is covered by the law of contract - that is the insurer agrees to repair/replace according to the terms of the contract. If it is an agreed value contract then it will pay up to that value, and if the repairs estimate is high in relation to that value it may well decide to offer a payment rather than agree to repairs. Remember also that it is not the insurer that commissions and pays for the repairs, but you contract with the repairer, so you may well be better off accepting the payment. The settlement may include an agreement that you keep the boat and then get it repaired, or they keep it and sell it for salvage/repairs. If on the other hand your contract is for replacement value (as in most car insurance) they may well only pay what they consider market value at the time , or to replace it with a similar boat.

If you are claiming against a third party then you have no contract, but their obligation is to put you back in the position you were before the event. This will inevitably mean they will do everything they can to minimise the payment. In principle this situation is probably best handled by a professional working on you behalf to get the best deal, particularly if there is a lot of money involved.

So, no simple answer - it all depends on the specifics of the claim and what your objectives are.

 

[PaulRainbow]

The question was: "do I have to take it or can I demand the boat be repaired instead.. "

The answer to that is two fold. First, you cannot demand that it be repaired, if repairs would cost more than the value of the boat, they aren't going to repair it. Secondly, you do not have to take what they offer as a settlement, but they are unlikely to pay more than the boat was worth pre-accident.

 

[Stemar]

I don't know if it would work for a boat, but I had a car written off several years ago. The repairs were straightforward, but would cost more than the insured value. I suggested an agreed value for the repair of a little less than the insured value, and I would deal with the repairs, adding that I would understand if they only wanted to provide 3rd party insurance afterwards. They accepted, I did the repairs and the car ran for several years afterwards.

As an alternative, ask them how much they want for the wreck. You don't have to accept their first price, but chances are, they'd jump at the chance to sell it to you - far less work and cost than scrapping/auctioning it.

 

[Sailingsolitaire@outlook.]

If your insurer is saying that it could be repaired but the cost of those repairs is likely to be more than the insured value-----hence write off. Or is it a third party insurer you are claiming off?

Cost to repair is looking like considerably more than insured value

 

[Sailingsolitaire@outlook.]

If your insurer is saying that it could be repaired but the cost of those repairs is likely to be more than the insured value-----hence write off. Or is it a third party insurer you are claiming off?

cost to repair considerably more than value

 

[Tranona]

Cost to repair is looking like considerably more than insured value

Then if you are claiming off your own insurance they will pay the insured value. The term "write off" is misleading. While it is used for cars it is in the context of whether a vehicle can be repaired to a roadworthy standard, so there are different categories of write offs.

With a boat it is often the case that a repair is possible , but not within the insured or market value. This is particularly true nowadays with the low value of old boats against the cost of repairs. So it is up to you to decide whether you just want the money or whether you want to repair the boat yourself using the insurance payout and come to an agreement with the insurer. This can be perfectly viable if you are doing the work yourself, for example - but only you, perhaps in consultation with a surveyor can make that decision.

If you are claiming off a third party, you don't have the fallback of an insured value, and they are likely to start from the lowest market value if that is less than the repairs. In this situation, if there is a lot of money involved it is helpful to have a professional surveyor experienced in insurance work negotiating on your behalf.

 

[PaulRainbow]

Then if you are claiming off your own insurance they will pay the insured value. The term "write off" is misleading. While it is used for cars it is in the context of whether a vehicle can be repaired to a roadworthy standard, so there are different categories of write offs.

This is incorrect. A car is "written off" because it is considered by the insurance company to be uneconomical to repair it. That means the cost of repair would exceed the value of the car, taking into account the value of the salvage. The insurance company will decide, based on the advice of the assessor, which category of write-off shall apply to the vehicle.

It has nothing to do with "whether a vehicle can be repaired to a roadworthy standard", if that were the case, no write-off would ever be allowed back on the road. Besides, any vehicle can be "repaired to a roadworthy standard", if enough money is spent on it. A heavily damaged £50,000 car could have the entire bodyshell (and more) replaced, whereas a £2,000 car could be written off for the cost of a new front bumper. It's all about money.

 

[pandos]

The value of the boat will be very subjective and in a 3rd party claim you can definitely argue strongly for the repair cost rather than their supposed actual value,
as said already the key is to have a repair cost of less than your value.

With your own insurer will probably have a declared value for the purposes of obtaining insurance, but in principle you may have chosen to self insure a portion of the value. This should effect a damage claim of less than full value if claiming against your own policy ...but ought not effect a 3rd party claim.

In a 3rd party claim you are better off establishing a value for your own boat including all factors that influence the value in your mind. This can be especially important if you have customized it.

This approach, coupled with providing estimates for repairs from your chosen repairers, and being firm in your dealings is the starting point. You might feel better with a professional assisting you but always remember the loss adjuster works for the insurers and in general they have more charm than conscience...(Ironically I find insurerance claims handlers themselves are more human!)

Also, loss adjusters often work on a fixed price basis so once you have conveyed your figures in a pursuasive and logical manner, being a pain and being and a bit longwinded can help you thereafter.

There is obviously a limit to how far you can push for an utterly uneconomic repair...but somewhere along the line you may get an offer of a settlement sum.

This can be better than an economic write -off followed by a sale at scrap value... as it does not identify the boat as being an economic write-off and allows you to spend the monies as you see fit.

 

[Tranona]

This is incorrect. A car is "written off" because it is considered by the insurance company to be uneconomical to repair it. That means the cost of repair would exceed the value of the car, taking into account the value of the salvage. The insurance company will decide, based on the advice of the assessor, which category of write-off shall apply to the vehicle.

It has nothing to do with "whether a vehicle can be repaired to a roadworthy standard", if that were the case, no write-off would ever be allowed back on the road. Besides, any vehicle can be "repaired to a roadworthy standard", if enough money is spent on it. A heavily damaged £50,000 car could have the entire bodyshell (and more) replaced, whereas a £2,000 car could be written off for the cost of a new front bumper. It's all about money.

It is just a question of terminology. An insurance company can "write a car off" even though the repairs are less than insured value because the repairs required would not make the car roadworthy. It is not true that any car can be repaired to roadworthy standard - that is why the categories of write off exist.

All I was trying to do was make the distinction between cars and boats where no such secondary test of "roadworthiness"

A little bed time reading for you rac.co.uk/drive/advice/know-how/what-is-an-insurance-write-off/

As you will see, not all about money, although money is a big factor. With boats it is all about money and how much one gets depends on the type of claim.

Just hope the OP has a proper agreed value policy, otherwise he is likely to have a fight on his hands.

 

[pandos]

Question with insurance companies . I have a 70ft length on water steel boden .. after discussion with the independent assessor they are looking at repairable write off .. if they decide on repairable write off do I have to take it or can I demand the boat be repaired instead..

Please say whether it is your insurer or a 3rd party insurer...this makes a huge difference to the most likely outcome.

 

[PaulRainbow]

It is just a question of terminology. An insurance company can "write a car off" even though the repairs are less than insured value because the repairs required would not make the car roadworthy. It is not true that any car can be repaired to roadworthy standard - that is why the categories of write off exist.

That's nonsense. What would be the point of repairing the car if it didn't result in it being roadworthy? It goes without saying it would need to be roadworthy. Whether to declare a total loss or repair is a financial decision.

It is true that any car can be repaired to a roadworthy standard, all you need to do is spend whatever is required to make it so. The reason it gets written off is because the costs of doing so exceed the amount the insurance company would need to pay out. It has nothing to do with "categories", as i explained earlier, "categories" do not come into being until after it's been written off. The purpose of the categories is so that the insurance company can categorise the salvage according to the damage that it suffered, helping to prevent badly repaired vehicles being put back on the road.

All I was trying to do was make the distinction between cars and boats where no such secondary test of "roadworthiness"

A little bed time reading for you rac.co.uk/drive/advice/know-how/what-is-an-insurance-write-off/

I was dealing with insurance companies, (recovering, assessing, repairing and storing vehicles for them) way before categories of write off were even thought of. Initially, there were no checks at all and no way of telling if a car had been written off. Then, HPi (then known as "Hire Purchase Information" started listing if a vehicle had been declared a write of, in a voluntary arrangement with the major insurers. Categories of write off and the current system came along much later.

Thanks for the bedtime reading link, but i'm pretty sure i don't need it.

 

[Sandyshore]

I would check first if your insurance policy for the boat "Agreed" or" Market " value.
If market value you might end up with insurers perception of value as seen immediately before the incident and therefore you could be out of pocket if you took a cash payment and insurers took the boat.
If an agreed value and nearer to the insured value a slight reduction in offer and keep the boat might help both parties.
Alternatively on agreed value take the money as a constructive total loss and look for a new toy leaving insurers the hassle of disposing of the boat .