Originally Posted by Searider
Some policies will be "agreed value" in which case in the event of a total loss you will be paid the "agreed value". Some policies are not "agreed value" policies. Check your wording.
"agreed value" policies normally a little more expensive.
I would suggest paying a little more to ensure that the level of cover is sufficient.
The area where you're most likely to lose out is if you damage your engine. Gearcases are very expensive! Cost of repairs could exceed the current market value of the engine which will be the most insurers will pay.
When dealing with a claim i've been advised by underwriters that if a "reasonable" customer makes a "reasonable" claim then he will get a "reasonable" pay out - and for me to look at the circumstances of the claim "reasonably" and to report accordingly.
I was unfortunate enough to suffer a fractured sterndrive leg in the area of the lower gear (on a twin-engined cruiser, not a RIB) in April 2005. Needed a new leg at total cost of ~£4,000. Cause unknown (the boat was on charter).
Four months later (again on charter), the other leg went (upper gear section this time). Suspected that an earlier incident of a rope wrapped round the prop had weakened or cracked a gear tooth that had later become trapped in the gear causing it to 'explode' the casing. New leg again, this time at total cost of £5,800 including cranage, storage etc
Both times the insurer (same insurer) settled the claim without delay (minus the excess, of course).
I agree insurers will act reasonably if insured's are not taking the p***.
PS - I don't have a sterndrive boat now.