Boat Insurance

 Just reading the Sept - Oct 2014 Bluewater Boats & Sportfishing magazine and there is an article in there from a guy who rolled his catermaran while doing 100kph travelling home on the road. What is interesting is that he discusses what insurance companies call "agreed value policy & market value policy.

His quote

"Most isnsurance compnies offer the option of 'agreed value' policy. For new boats this figure is usually hard to dispute once both parties have agreed on the value. However, once boats reach a certain age an evaluation from an independant licensed boat dealer is required with each policy renewal in order to ensure the agreed figure is honoured by the company. The maximum age can vary from one insurance company to another, but is usually two years old and over.

I had always thought that the 'market value' meant a reasonable advertised price for a similar boat on the second hand market, but form an insurance perspective this is not the case. Insurance companies only focus on the actual sale price of a second hand boat and this value can be significantly less than what was originally advertised. Such fluctuations in the 'market value' can leave you at the mercy of your insurance company and their assessors, so therefore it really pays to seek an 'agreed value' policy when you insure your boat.

There was a simple explanation for the change in my policy type; i had overlooked the fine print and become complacent about my policy cover. I'd put it in the too hard basket and said that I would get around to it another day. As a result I had neglected to supply current valuations with my insurance renewals for approximately five years. This oversight is why my 'agrred value' policy was no longer valid and had automatically switched over to a'market value' policy."

End quote

It is worth while reading the whole article though it will continue in the Nov - Dec 2014 issue as well. Now some questions for all of you.

How many of us have thoroughly read the small print in our insurance policy and understood what they mean? I for one haven't, but will do so now.

How many of us boat owners go to the trouble of each year going and getting a independant evaluation and providing it to our boat insurers?

How many of us take photos of the additions to the boat, i.e., photos of modifications, electronics etc that show/prove that we are adding value or at least maintaining the boat in an excellent condition? This doesn't mean photos of it on the water! But, could mean before and after photos of repair work done to the gel coat etc.

If fishing gear such as rods & reels are included in your policy do you have detailed photos and receipts of the gear as without these it is very hard to prove ownership etc?

 


Paul H's picture

Posts: 2104

Date Joined: 18/01/07

My boat (hull) is around 30

Fri, 2014-08-29 11:54

My boat (hull) is around 30 years old and as such on a market value policy, that being said the motor is new and its still counted as market value. If it comes to it there is going to be a fair argument, I do have the benefit of working in the insurance industry and know how to handle them.

From memory the condition report is current for 3 years (few other insurers wanted a surveyors report which for the value of the boat was not worth the cost).

Yep plenty of photos of work on the boat as far as restoration and keep all receipts. Even have photos of my tackle box as there is certainly more than the average fisho's tackle as far as value of contents.

Most of my purchases go on credit card (then paid off) so there is another record of purchases if needed.

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Date Joined: 18/01/12

with Nautilus, and agreed

Fri, 2014-08-29 12:07

with Nautilus, and agreed value. Boat is 9 years old and have never been asked for a vaulation?

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solly's picture

Posts: 376

Date Joined: 11/09/05

Im in the same boat

Fri, 2014-08-29 12:16

 Agreed value with Nautilus and boat turned five ,renewed policy has agreed value on it

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