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Boat Valuation
In the event of a total loss if you have an ‘agreed value’ insurance policy then the insurers will usually pay you the whole sum insured. However if the policy is a market value at the time of loss (often a standard perils policy wording) then you will only receive what is considered to be the market value at the time of the loss.
It’s vital to get the valuation correct as there are consequences for over estimating. If your insurer believes that your valuation varies significantly from what he thinks it should be, then he may ask for a professional valuation to be carried out. Sometimes you may be asked for receipts to support work that has been carried out or for any new equipment that has been added.
One of the main principles of insurance is that as a policy owner you should not be able to benefit from an insurance claim. Therefore when you make a claim as far as possible you should not benefit by being in a better position than you were before the claim was made.
Although if you have a new craft you may wish to cover the boat for the first three years on a like for like basis, and there are a few insurance companies that will provide a policy to do this.
So it’s worth consulting a specialist marine insurance broker to ensure that you have the policy that suits your requirements best.
