Insurance value vs. Market value & Total Loss?

[T37Chef]

I recently called my insurance company, Boat US. I wanted to increase the Agreed Value because of several upgrades we have done to the boat.

The underwriter said Boat US will only insure up to 20% above the "blue book" value. To my surprise she said our boat was worth much less than I would have thought, especially based on what similar are listed for on Yacht World.

As a result we are already exceeding the 20% max. I am concerned that if we were to have a total loss we're up s*&ts creek.

So my question is...How can I insure the difference in case of a total loss? Are there any options here, can homeowners cover the difference

BTW...The boat is a 1982 Tartan 37 so finding a company that will insure a 20+ year old boat is already a challenge

Thanks

[kd3pc]

david

I think that you are finding that the boat insurance industry is starting to look seriously at "sold" figures to value the boats they will insure...along with a current survey...The asking prices you and I see on yachtworld bear no resemblance to what the boat actually sells for or surveys at.

I also don't think that what a boat owner adds or "upgrades" is meaningful to them either...kind of like houses.. You will have a hard time finding someone who will insure a 20+ year old boat for an "agreed" value....to them the boat is worth $XXXX.XX plain and simple, they have no emotional attachment to it or care.

Best of luck...

[T37Chef]

Thanks,

I understand the selling price has not much to do with as sold price, and survey results. But we're talking about $25,000 difference or about 30%, I don't think most boats would sell for 30% less than what its listed for? I don't know, but if so I need to work on my negotiating skills

The reference to home insurance...I would disagree. A year ago we adjusted our homeowners due to a kitchen remodeling and addition.

PS, Sorry but I'm not David, just his quote, so I have edited my signature Shawn is the name

[kd3pc]

T37

With the house, I meant overbuilding for the neighbor hood...or adding things that, although nice, don't add value to the average buyer. I know, I was a Realtor for a while...we have a super nice swimming pool, but I would be lucky to get 5% of it's value back when I sold...

I think that you may be surprised at the gap between asking price and sold price, I bought my boat last year for well over 25% of the asking price, and it surveyed almost right back at that asking price. I was able to get the insurance to cover the survey value, as it was in line with "sold" boats that they see.

If you have access to a good broker, they can get the "sold" prices of similar Tartans, that may help you in your efforts with the Insurance Company

[camaraderie]

T37...the problem is all the crappily maintained boats that get sold and drag the average price down. Some insurers are better than others and will insure for more than book but will require a new survey to establish value. Boat US is a good insurance provider as far as reliability goes but they are very inflexible.
Have a chat w/ Bob Bell or Al Golden over at IMIScorp.net if you want a second opinion. They have taken good care of us and I have no personal connection other than being a very satisfied customer after IVAN!!

[sailingdog]

You could also give Christine Hartge, over at Hartge Insurance a call... she might be able to find a company that will be willing to work with you.

[T37Chef]

Originally Posted by sailingdog

You could also give Christine Hartge, over at Hartge Insurance a call... she might be able to find a company that will be willing to work with you.

Thanks SD, I did a while back, per your suggestion in another post, but they came in almost double than Boat US with no more coverage, and needed a survey Maybe I should try them again.

[T37Chef]

Originally Posted by camaraderie

crappily

LOL, will do, but is this a word?

[sailingdog]

Originally Posted by T37Chef

Thanks SD, I did a while back, per your suggestion in another post, but they came in almost double than Boat US with no more coverage, and needed a survey Maybe I should try them again.

That's odd... My quote from BoatUS was higher and provided significantly less coverage than the quote that she got me, so I got my policy through her.

[T37Chef]

She was surprised as well, but I have been with BUS on & off for years...fiqures