Insurance question

[Ovey]

Hi all, I have just received my renewal quote from Porthcawl which I think is reasonable however I need to make a change or two to the policy, having added to the boat and swapped the trailer over the year I've had it.

But the question I have is this - what do I put down as the value of the engine?

Do I put it down as the cost of a new one, or do I put down a representative guess value? It's a 2003 Yammy F115AETL and I previously had it down as £4500 when I first bought the boat but realise this is probably wrong (and no doubt I would get less from an insurer due to wear & tear even though I have agreed value). Should it get damaged/lost/stolen I know that it would cost me at least twice that to replace with new and there are few second hands out there.

What do you do for your "old" engines value on your policy?

Thanks.


Sent from my iPhone using RIB Net

[Pikey Dave]

It all depends on if you have an "agreed value" or "market value" policy. If it's "agreed value" you pays your premium & they pay out whatever you put down as the value. If it's "market value" you put down what you think it's worth, they charge you accordingly, BUT will only pay out what they think is "market value". I got caught out by Bishop Skinner on this. They were charging a premium based on my estimated value, but would only pay market value in a total loss. I now have an agreed value policy with Mercia Marine.

caveat emptor

[Ovey]

I have "agreed value" with Porthcawl which was the reason I went with them in the first place. But I think I need to revise my value - I'm not sure £4500 is a true guess for a 2003 engine, but not sure what to guess next!


Sent from my iPhone using RIB Net

[captnjack]

Agreed value is agreed value. There is no depreciation in an agreed value policy!

Obviously you can't put down £20,000. But I see nothing wrong with putting down a reasonable replacement value, even if that's for a new one.

Your rate is based on the agreed value, their payout is agreed value this year or 5 yrs hence. My agreed value policy limits have not changed even though the boat is 7yrs old now. It was custom built for me and getting a replacement would require another (new) custom build. So I have kept my agreed value limits to the roughly new purchase price (I have not tried to account for inflation)

[Searider]

I'd advise calling Porthcawl and asking.

Are you positive you've got an agreed value policy - they are pretty rare and you would have had to ask for it specially and pay accordingly.

[Pikey Dave]

Originally Posted by captnjack

Agreed value is agreed value. There is no depreciation in an agreed value policy!

Obviously you can't put down £20,000. But I see nothing wrong with putting down a reasonable replacement value, even if that's for a new one.

Your rate is based on the agreed value, their payout is agreed value this year or 5 yrs hence. My agreed value policy limits have not changed even though the boat is 7yrs old now. It was custom built for me and getting a replacement would require another (new) custom build. So I have kept my agreed value limits to the roughly new purchase price (I have not tried to account for inflation)

My boat is insured for what I paid for it new 6 years ago, in the event of a total loss, that is what I would get paid out. If I was the OP,I would just use the original purchase price of the engine, If it IS an agreed value policy, there should be no mark down for wear & tear. In theory, an agreed value policy is actually insuring your money, not the boat, so the agreed value should theoretically rise according to inflation. In practicality, you wouldn't do this, as you'd finish up insuring an old boat for an unreasonable amount of money & paying a daft premium.

[Ovey]

Yeah, the policy is definitely an agreed value for the engine - I may call them and "up" the value to nearer a new engines value then. If I ever had to replace it, if I can get a second hand one I'd dip in, if I had to go new I'd dip out.

I paid around £14k for the whole package just over a year ago so I don't know the "individual" price of the engine, but I've substantially upgraded/added to the boat electronics, swapped the trailer to a (now legal!) brand new larger capacity one and generally tidied the boat up.

Any reasonable guesses or valuations for a 2003 Yam F115AETL greatly appreciated!

[Pikey Dave]

Originally Posted by Ovey

Yeah, the policy is definitely an agreed value for the engine - I may call them and "up" the value to nearer a new engines value then. If I ever had to replace it, if I can get a second hand one I'd dip in, if I had to go new I'd dip out.

I paid around £14k for the whole package just over a year ago so I don't know the "individual" price of the engine, but I've substantially upgraded/added to the boat electronics, swapped the trailer to a (now legal!) brand new larger capacity one and generally tidied the boat up.

Any reasonable guesses or valuations for a 2003 Yam F115AETL greatly appreciated!

In that case, I'd definitely "UP" the value. Work out how much the whole outfit stands you at, add 10% & go for that. They will obviously charge you accordingly, but if you insure it for a healthy amount now, it will stand in good stead for a few years at the same level.

[Ovey]

It sounds like good advice, thanks PD!

I'll give Porthcawl a call this afternoon (and then look elsewhere too for comparison purposes).