Page 1 of 3 123 LastLast
Results 1 to 10 of 22
  1. #1
    V1701's Avatar
    V1701 is offline Registered User
    Location : Brighton/SW Aegean...
    Join Date
    Oct 2009
    Posts
    2,525

    Default How much should I insure my boat for?

    Hi all,
    Hope this isn't a daft question but I am wondering how much to insure my boat for. I am inclined to insure it for more than I paid for it, not a ridiculous amount more but lets say I paid £25k and insure it for £30k. In the event of a total loss would the insurance company payout the insured sum (minus excess) or could they ask to see a receipt and pay out that amount, in which case no point insuring for higher value? Or would they look at the market (in the absence of a Glass's guide for boat prices) and decide on a value based on that? It's my first boat and I haven't owned a car or motorbike for years either so very unused to dealing with insurance matters...

    Any advice gratefully received, thanks,
    David.
    Last edited by V1701; 09-01-10 at 11:32.

  2. #2
    Join Date
    May 2007
    Posts
    15,503

    Default Fair Value

    You should insure it for its fair value.
    That may be more or less than what you paid for it.
    You should estimate the true cost of replacing it with the same boat in the same condition.
    Look at what others are advertised for. If it's not a common design then consider the prices of similar boats that you might have bought at the time.

    If your valuation is way above the purchase price, you should make sure you can justify it, perhaps you have improved the boat, or bought it from a rushed seller at end of season etc.
    Make sure you have photos that show it's in top condition.

    Also keep receipts for everything, because if it has grown in value you might be looking at capital gains tax down the line, particularly if inflation picks up.

  3. #3
    Ubergeekian's Avatar
    Ubergeekian is offline Registered User
    Location : Me: Castle Douglas, SW Scotland. Boats: Kirkcudbright, Loch Ken, Port Bannatyne
    Join Date
    Jun 2004
    Posts
    9,906

    Default

    Quote Originally Posted by lw395 View Post
    Also keep receipts for everything, because if it has grown in value you might be looking at capital gains tax down the line, particularly if inflation picks up.
    However, there may be no tax to pay if both of the following apply to the possession:

    * it had an expected useful life of less than 50 years when you got it
    * it hasnít been used in your trade or job

    An example of this might be a caravan or motor-boat you bought and used for pleasure.
    From http://www.hmrc.gov.uk/cgt/intro/when-to-pay.htm

  4. #4
    Join Date
    Nov 2001
    Posts
    1,404

    Default

    Quote Originally Posted by Ubergeekian View Post
    From personal experience I can confirm that is the case.

  5. #5
    Join Date
    May 2007
    Posts
    15,503

    Default

    Quote Originally Posted by Ubergeekian View Post
    Fair enough, but they've been known to change the rules before. I expect the idea of our boats having finite lives would be a touchy subject for some people too? Plenty of fifty year old boats out there as it is.
    And some people do use their yachts in business or trade, e.g, a spot of tuition or chartering.

    Still good advice to keep all significant receipts. If your boat is lost or stolen, it shows you have kept spending on the boat.

    We're off the point though. If in doubt you should discuss the value with the broker, it's probably better to do this when taking out the policy than when claiming.

  6. #6
    Join Date
    May 2007
    Posts
    15,503

    Default

    And note it says 'there MAY be no tax to pay' not WILL or SHALL....

  7. #7
    V1701's Avatar
    V1701 is offline Registered User
    Location : Brighton/SW Aegean...
    Join Date
    Oct 2009
    Posts
    2,525

    Default

    Quote Originally Posted by lw395 View Post
    You should insure it for its fair value.
    That may be more or less than what you paid for it.
    You should estimate the true cost of replacing it with the same boat in the same condition.
    Look at what others are advertised for. If it's not a common design then consider the prices of similar boats that you might have bought at the time.

    If your valuation is way above the purchase price, you should make sure you can justify it, perhaps you have improved the boat, or bought it from a rushed seller at end of season etc.
    Make sure you have photos that show it's in top condition.

    Also keep receipts for everything, because if it has grown in value you might be looking at capital gains tax down the line, particularly if inflation picks up.
    Thanks that's reassuring actually as my thinking was based on true cost of replacing like for like based on others. It will be improved by the time it goes back in Feb/March (assuming this weather lets up at some point) and was bought end of season. Capital gains won't be an issue...

  8. #8
    Mavanier's Avatar
    Mavanier is offline Registered User
    Location : Edinbane, Isle of Skye
    Join Date
    May 2005
    Posts
    2,091

    Default

    Boats are quite low volume items and as such the 'value' is simply a relfection of what an individual will be prepared to pay for it. This is different to cars where the sheer number of transactions creates an expectation of certain models having certain values.

    So, when you bought your boat, you probably took advantage of somebody who needed to sell, ergo you get a good (low) price. But if you wanted to buy a direct replacement, you would have to be prepared to go looking and persuade somebody to sell, and you would inevitably end up paying more. Market forces.

    Do insurance companies take this into account?

  9. #9
    Ludd's Avatar
    Ludd is offline Registered User
    Location : Guadiana---again!
    Join Date
    Feb 2009
    Posts
    3,951

    Default

    Quote Originally Posted by djbreeze View Post
    Thanks that's reassuring actually as my thinking was based on true cost of replacing like for like based on others. It will be improved by the time it goes back in Feb/March (assuming this weather lets up at some point) and was bought end of season. Capital gains won't be an issue...
    Your insurer will/would have required a survey. The surveyor will/should have included his assessment of value.Any sum over this I would expect you to have to justify(receipts for equipment,electronics etc)

  10. #10
    Join Date
    Mar 2006
    Posts
    10,017

    Default

    In 2006 I bought for £120 k and insured for £130k, with the knowledge of the insurance Co..... no problem. In 2009, I reduced the cover to £110k, as the value had fallen... no problem.

    Make sure the insurance company are aware of the situation, and it's up to them to accept/decline cover.
    Narrowboating From Stretford!!

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •