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13 hours ago, dmr said:

I don't fully understand insurance. The premium is closely related to the declared value of the boat. This would suggest that pay-outs due to total loss are a significant occurrence as the value of the boat should not influence third party claims and smaller accidents. Even more interesting is that if you ask for "agreed value" cover the premium almost doubles which suggests that on average the companies reckon to pay out only about half of your declared value in the case of a total loss. This suggests that most people are over-declaring the value of their boat relative to the insurers valuation and so paying too high a premium??????????

 

...............Dave 

You may not understand it until you claim, then the loss adjuster will explain it to you as he pares down your claim.

I think the government's policy of self insuring, paying no premiums, has a lot to recommend it.

Unfortunately the capital deposit required to do this makes it very difficult and I doubt if CRT  or your boat insurer would understand!

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14 hours ago, dmr said:

I don't fully understand insurance. The premium is closely related to the declared value of the boat. This would suggest that pay-outs due to total loss are a significant occurrence as the value of the boat should not influence third party claims and smaller accidents. Even more interesting is that if you ask for "agreed value" cover the premium almost doubles which suggests that on average the companies reckon to pay out only about half of your declared value in the case of a total loss. This suggests that most people are over-declaring the value of their boat relative to the insurers valuation and so paying too high a premium??????????

 

...............Dave 

If you declare a value that is half the replacement cost of your boat you would be under insured . This means your insurers, if they realised  you were under insured , would almost certainly reduce their payout accordingly. Your insurer would never pay more then the sum you have declared.

 

There is no point in being over insured . Insurers will never knowingly pay more than the  market value unless it is specifically agreed otherwise .

 

The  insurance premium I pay  is certainly a rate per thousand of   the sum insured .

The rate per thousand  is influenced by factors such a s the location where the boat is kept. A boat kept  in a marina perceived by some insurers as being lower risk.

 

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9 minutes ago, MartynG said:

If you declare a value that is half the replacement cost of your boat you would be under insured . This means your insurers, if they realised  you were under insured , would almost certainly reduce their payout accordingly. Your insurer would never pay more then the sum you have declared.

 

There is no point in being over insured . Insurers will never knowingly pay more than the  market value unless it is specifically agreed otherwise .

 

The  insurance premium I pay  is certainly a rate per thousand of   the sum insured .

The rate per thousand  is influenced by factors such a s the location where the boat is kept. A boat kept  in a marina perceived by some insurers as being lower risk.

 

 

Yes, perhaps I did not fully make my point, If you declare a low value (under insured) then the insurers will reduce their payout even in the case of smaller claims well below the insured value, but if you declare a high, (or reasonable) value, the insurers will likely pay out less in case of a total loss. If your boat is 20 years old but in perfect condition with a really good fit out and it is lost to a fire you will likely get paid the value of a typical 20 year old boat.

 

I have agreed value insurance and it is more expensive, but neither of the companies that I have used have asked for a valuation or a photo, which they did when I had agreed value insurance on my cars/vans. I expect if I made a claim and they could establish that I had seriously overvalued the boat then maybe they would do me for fraud.

 

...............Dave

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45 minutes ago, dmr said:

 

Yes, perhaps I did not fully make my point, If you declare a low value (under insured) then the insurers will reduce their payout even in the case of smaller claims well below the insured value, but if you declare a high, (or reasonable) value, the insurers will likely pay out less in case of a total loss. If your boat is 20 years old but in perfect condition with a really good fit out and it is lost to a fire you will likely get paid the value of a typical 20 year old boat.

 

I have agreed value insurance and it is more expensive, but neither of the companies that I have used have asked for a valuation or a photo, which they did when I had agreed value insurance on my cars/vans. I expect if I made a claim and they could establish that I had seriously overvalued the boat then maybe they would do me for fraud.

 

...............Dave

I suggest if you think your boat is out of the ordinary you do take photographs and perhaps write a full description and send it to your insurers prior to the next insurance renewal. There is nothing stopping you obtaining  a professional survey report - apart from the expense.

This is one of the reasons to have  pre purchase survey as it does establish the condition of the boat at that time .

A fresh survey every five years- (or if appropriate after a significant refit) , might be  a sound plan. I doubt whether anyone does this. I certainly haven not.

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Because my boat was a self fit out it was obviously going to be worth more than the sailaway price when it was complete.  The insurance company required a surveyor to value the boat, which was done and the insurance company accepted without question.  So if you think your boat is worth more than the ‘book price’ the insurance company uses then I would discuss with them how to agree a value, because by accepting their quote (based on their perception of it’s value) you have accepted that value even if you don’t know what it is.  No good trying to present photos etc after the event.

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21 hours ago, dmr said:

I don't fully understand insurance. The premium is closely related to the declared value of the boat. This would suggest that pay-outs due to total loss are a significant occurrence as the value of the boat should not influence third party claims and smaller accidents. Even more interesting is that if you ask for "agreed value" cover the premium almost doubles which suggests that on average the companies reckon to pay out only about half of your declared value in the case of a total loss. This suggests that most people are over-declaring the value of their boat relative to the insurers valuation and so paying too high a premium??????????

 

...............Dave 

But they will still not pay out more than the boat is assessed in value at the time of loss.

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35 minutes ago, Mike Todd said:

But they will still not pay out more than the boat is assessed in value at the time of loss.

My understanding of "agreed value" is that is what they pay out in the case of total loss, and I believe this it what it says on the documents. The standard policy pays out the "market value".

 

.................Dave

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