Insurance question - Page 2

Ovey · 06 October 2014, 19:24

But how would I get an agreed value of £10k for a replacement engine when the actual engine on the boat is only worth £4.5k max? Is that possible? Obviously I'd have to pay more if it even is.

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kerny · 06 October 2014, 19:27

Quote:

Originally Posted by captnjack

Agreed value and the premiums for agreed value basically stay the same year after year. Why would it go up unless the risk of paying out £4500 changes? I don't think my premiums have changed more than about 1-2% total in 7 years with the same agreed value limits and the same insurer.

Quote:

Originally Posted by Pikey Dave

The value stays the same year on year. The premium rises incrementally each year by about the rate of inflation. I'm paying more or less the same as I did 6 years ago in real terms.

It would be silly not too then. That's the way I'll go next year thanks

captnjack · 06 October 2014, 19:42

Quote:

Originally Posted by Ovey

But how would I get an agreed value of £10k for a replacement engine when the actual engine on the boat is only worth £4.5k max? Is that possible? Obviously I'd have to pay more if it even is.

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As long as the agreed value is reasonable then it is what it is.

Yes the depreciated value of the boat is 4.5K but if its going to cost you 10k to replace it because the only way to actually replace it is to buy new then get an agreed value policy for 10K.

If replacing it will cost 10K you probably shouldn't attempt to get an agreed value policy of 25K and expect to profit by 15K after buying a new one. That looks a lot like fraud.

Ovey · 06 October 2014, 19:57

If I could get an agreed value of £25k it might go missing a couple of times a year!

But seriously I'm just looking to receive a realistic amount back to be able to replace with a similar/same engine should the worst happen.

Will have a few chats with various insurers over the next couple of weeks.

Thanks for all the replies!

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bartiny · 06 October 2014, 20:08

With classic car 'agreed value' insurance I have to (when asked) re submit upto date photographs of the engine bay and rest of car for it the value be 'agreed' again.

Seems odd that you could get an agreed value on your boat and engine, 'use it and abuse it' then 'lose it'

and get paid out

It must be open to abuse

.

Just my thoughts

kerny · 06 October 2014, 20:13

Quote:

Originally Posted by bartiny

With classic car 'agreed value' insurance I have to (when asked) re submit upto date photographs of the engine bay and rest of car for it the value be 'agreed' again.

Seems odd that you could get an agreed value on your boat and engine, 'use it and abuse it' then 'lose it'

and get paid out

Just my thoughts

Isn't that what insurance is for

Pikey Dave · 06 October 2014, 20:28

Quote:

Originally Posted by bartiny

With classic car 'agreed value' insurance I have to (when asked) re submit upto date photographs of the engine bay and rest of car for it the value be 'agreed' again.

Seems odd that you could get an agreed value on your boat and engine, 'use it and abuse it' then 'lose it'

and get paid out

It must be open to abuse

.

Just my thoughts

Thing is, you're not actually insuring the boat. What you're doing is buying "X" amount of cover for a fixed fee. The actual value of the boat is irrelevant, the premium is based on the amount of cover, not the value of the boat.

captnjack · 06 October 2014, 21:02

Quote:

Originally Posted by Pikey Dave

Thing is, you're not actually insuring the boat. What you're doing is buying "X" amount of cover for a fixed fee. The actual value of the boat is irrelevant, the premium is based on the amount of cover, not the value of the boat.

Very true but given that insurers are looking for excuses not to pay out and/or fraud its best not to be unreasonable with the replacement costs. Accurate and even rounded up is probably fine but trying to get a 50m yacht as "replacement" for your 4m SIB is not going to be viewed favorably if the claim is disputed (and it probably would be).

Ovey · 06 October 2014, 23:02

I'm not looking to defraud anyone, I'm too honest for my own good most of the time! I just want to make sure I'd be able to afford a replacement engine.

So are there any recommendations for companies who do agreed value on engines? Mercia Marine has been mentioned but others are welcome.

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Doug Stormforce · 06 October 2014, 23:14

Quote:

Originally Posted by Ovey

But how would I get an agreed value of £10k for a replacement engine when the actual engine on the boat is only worth £4.5k max? Is that possible? Obviously I'd have to pay more if it even is.

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Quote:

Originally Posted by Pikey Dave

Thing is, you're not actually insuring the boat. What you're doing is buying "X" amount of cover for a fixed fee. The actual value of the boat is irrelevant, the premium is based on the amount of cover, not the value of the boat.

I dont think you can insure and expect to get a pay out for more than the boat is worth. If you over insure and claim you will not get the inflated value you will get what the loss adjuster values your boat at.

If you feel the insurers might under value your bat get a surveyor to value it, and send the valuation in when you negotiate your policy.

Pikey Dave · 07 October 2014, 05:04

Quote:

Originally Posted by Doug Stormforce

I dont think you can insure and expect to get a pay out for more than the boat is worth. If you over insure and claim you will not get the inflated value you will get what the loss adjuster values your boat at.

If you feel the insurers might under value your bat get a surveyor to value it, and send the valuation in when you negotiate your policy.

Agreed to a point. Agreed value is a bit like life insurance, I can insure the missus for £10k or £10m, same missus, same life, the only difference is the premium. If I start insuring a £5k RIB for £100k it might raise some eyebrows & questions, but then I'd be paying a silly premium to insure a cheap boat & it would be screming "Fraud". The premiums would probably be more than I paid for the boat & the whole thing would smell dodgy. I currently have my 6 yr old boat insured for exactly what I paid for it new & pay accordingly. I could probably half my premium if I took a market value policy, you pays your money & takes your chance. If I kept the boat for another 10 years, I'd be paying the same premium+inflation, So I'd be paying over the odds for a 16yr old boat. The insurance company would be happy to keep taking my money. Don't forget that the agreed value only comes into play in the event of a total loss, when it comes to damage etc, the T&Cs are just the same.
Speak to the insurers is the best advice I can give.