Discussion:
Barge insurance
DBA Forum (B) - Bruce Bosworth
2014-10-17 11:20:32 UTC
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What is the best way to have a barge valued for insurance purposes?
DBA Forum (B) - John Arthur Tundervary
2014-10-17 21:33:09 UTC
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Hi Bruce I believe they charge on the value of the vessel,£1 per thousand I believe/

JOHN
DBA Forum (B) - John Arthur Tundervary
2014-10-17 21:38:16 UTC
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Sorry Bruce that's wrong,£100 per thousand I meant to say.

JOHN
DBA Forum (B) - Chris Roy
2014-10-18 06:57:18 UTC
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[quote]Sorry Bruce that's wrong,£100 per thousand I meant to say.
[/quote]

????? Now confused.
Are you saying that it costs £10,000 to value a barge worth £100,000?

Chris
DBA Forum (B) - Bruce Bosworth
2014-10-18 08:33:05 UTC
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Thank you for your replies. I think I must have worded my question badly because I was not enquiring about the cost of insurance. I shall try again.

When my barge insurance renewal occurs it asks the value of the vessel to be insured. Until now I have put the value for which I paid for the barge when new. I do not know if the barge has depreciated or appreciated in value since 2007. Do I pay a marine surveyor to value it? Pay a boat brokerage to value it? Advertise it for sale to get a true market value (assuming I can sell it in the current economic conditions)? I don't like the thought of the last idea. It would be a subterfuge because I have no intention of selling.
DBA Forum (B) - Di Warner
2014-10-18 08:56:24 UTC
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I thought all insurers ask for a survey after some interval of years, which includes - or you instruct your surveyor to include - a valuation.
We use this figure for the 'value of the vessel' question.
We're with Haven Knox-Johnstone and can highly recommend them after out claim this year!!

I hope this helps ☺
DBA Forum (B) - Pete. Milne
2014-10-18 09:43:15 UTC
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[quote="Di Warner" post=58544]
I thought all insurers ask for a survey after some interval of years, which includes - or you instruct your surveyor to include - a valuation.
We use this figure for the 'value of the vessel' question.
[/quote]
A hull survey for insurance purposes won't automatically include a valuation. It's more likely to cost more to assess the state of interior, equipment, etc. Mind you, when I had my purchase hull-only survey, the surveyor was happy to confirm that the sale price was about right, at no extra cost - so you might get a rough estimate for free - for the marketplace in the area you have your survey done. The value might be different elsewhere.

Pete
DBA Forum (B) - Charles Timothy Golden
2014-10-18 10:39:55 UTC
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In terms of what value you insure for , I believe the are two schools of though / routes insurance companies follow.
a. Current Value
b. Replacement Value

With current Value, then you would need a valuation to equate to the physical value or perhaps be accused of fraud in the event of a total loss. Total Loss brings to light the dangers of this route, as if it occurs you might have to find a substantial sum to replace your " home" to equal standard.

This risk does not occur if you are insured on a replacement basis , which I would suggest would be the better route to go down, because it produces a result that insurance is intended to produce, ie an no cost return to standard ( less of course any excess ). Also if it is partial damage, the question of deduction of depreciation from the claim does not happen as the replacement value of the item (s) would be paid.

In this case of replacement value the amount for valuation could be easily worked out without the cost of a physical valuation by using the current list price of an equal vessel or if not a standard one the new cost price + inflation.

This then leads to the grey area of what equipment fitted = structure and what is content , but that is another subject .

When I had to insure several million pounds of JCB & Cat plant, I used the replacement value method and could sleep at night !

However I am yet to insure a DB and would be interested if any of the current Marine Insurers do a replacement value policy , which I would certainly use when I get afloat next year, despite the extra cost due to the higher valuation.

If there is not an actual dedicated policy, then perhaps a declaration to the insurer that the Value requested to be insured is replacement and not actual might suffice ?

Regards Tim
DBA Forum (B) - Pete. Milne
2014-10-18 17:08:07 UTC
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My (Dutch) insurer (Noord-Nederlands) just asked what I want value I wanted to insure for and gave me a price, (which includes 30% of value to cover contents. When asked about how often surveys should be done, they said 'that's up to you; we just ask that you maintain the hull and the bottom always has more than 4mm thickness'.

Different insurers may work differently. I suggest asking a few. There's no point speculating on the Forum!

Pete
DBA Forum (B) - Bruce Bosworth
2014-10-19 08:34:16 UTC
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Thank you for your replies. Very useful.

Bruce

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