insurance

[Ray Morley]

I have a 2001 Albin TE with the usual features and 300 hours on the Yanmar. My insurance company said I should only insure it for the value. Any one got any ideas or suggestions?

Thanks
Ray Morley
Ipswich

Sea Inn

[RobS]

What is "the value" they are talking? Is it sufficient for a like kind and quality replacement? I think anywhere in the $85K to $100K range should be safe.

[jcollins]

My 1995 TE 28 survey in Dec. 2005 listed two values.

Replacement - 138k (I'm guessing that was the price for a new one?)
Fair Market - 78k

I insured for 78k. I paid 75. (plus 5% sales tax)

Now, over the last few years I've put another 4k in "improvments", 6k in berthing fees, lost market value but gained untold wealth in life adventures and friends.

[johnmurray]

My insurance broker recommended that I insure my boat (2004 A-30FC) for its "market value". The number I have it insured for is Can$150K which represents the approximate Yachtworld asking price of $US 115K plus currency exchange plus taxes. The premuim I pay is just over Can$1300 annually, substantially less than I initally paid when I had it insured for $180K. Coverage includes $2 million liability, health benefits, dinghy, etc.The policy is subject to a 1% deductible for damage above the waterline and 2% below the waterline; there are reasonably generous navigation limits (for Canada and the north-eastern US, but not down south); and the boat must be hauled and stored for the winter.

[Mariner]

My understanding and experience is that the amount you insure it for is just a cap over which they will not pay. In the event of a total loss, they will only pay for the fair market value of the vessel. That number is somewhat negotiable, as you will be able to reject their initial offer for settlement and provide evidence that similar vessels are selling for more. It pays to be aggressive whenver making insurance claims. Never accept the initial offer. Always demand more. My experience has been that it is best be nice at first, but threaten the involvment of an attorney when they don't comply with your requests. Then suggest that an out of court settlment more in your favor will be better for everyone involved. They know they will lose once the lawyers get involved. If you do this, you will usually maximze your settlement.

Understand, however, that, under no circumstances, will they ever pay above the policy amount, as they are under zero legal obligation to do so.

I'm sure there are some attorneys and insurance agents on the board who can offer more insight.

[Yearwood]

A true marine policy, unlike an auto policy, for example, is an "agreed valuation" policy. That is in case of a "total loss" the underwriter is obligated to pay the amount stated in the policy. The premium is determined , in part, by the stipulated value and underwriters do not insure wild valuations under marine policies. In spie of this it seems more and more marine policies are stated at market value.