Insurance value of outboards....low!

[Blankton]

I have just had my first renewal for my Craftinsure policy. I was glancing through the smallprint to see that the maximum payout on outboards is "market value". The catch being that market value, isn't really what it says on the tin.

The Craftinsure "Market Value" is calculated by the new price, less 10% depreciation every year. Even pre covid a nice late 15hp 2 stroke would have been £1000-1200, now you would probably be looking at £1500-1800. However, based on their calculation, if my engine was lost or stolen, I would be getting the new price minus 70%, so I'd guess about £600.

I have called them to see if it was possible to have an agreed value for the engine (as is common with classic cars), but apparently this isn't possible.

I just thought I'd make people aware - be careful of your OB's, especially if you have a nice condition older one! I'd also be interested to know if anyone knows a company that would work on an agreed value basis. Even thought craftinsure are cheap, for myself it would be worth paying a little more to know I was fully covered.

If I can't find an alternative I also need to reduce my cover amount, as my cover was based on what I believed to be the value of the whole setup. But if the most expensive element of the rig, is capped to a significantly lower value, then I'm covering myself for more value than the policy would ever pay out.

[Fenlander]

Yes I'd been aware of this for some years. When first read it I thought it was a bit off in the way it impacted on the very clean desirable 2-strokes I've owned which would never have been paid out to value.

However truth is for me the third party public liability type element of the insurance is the important bit not the theft cover.

So given they are up front about the outboard value bit I just look at the broad aspect of cover related to the premium charges and feel happy it's sufficient for me so stay with them.

[Blankton]

Originally Posted by Fenlander

Yes I'd been aware of this for some years. When first read it I thought it was a bit off in the way it impacted on the very clean desirable 2-strokes I've owned which would never have been paid out to value.

However truth is for me the third party public liability type element of the insurance is the important bit not the theft cover.

So given they are up front about the outboard value bit I just look at the broad aspect of cover related to the premium charges and feel happy it's sufficient for me so stay with them.

I agree, the public liability bit is probably the most important aspect. Its still frustrating though. I'll just make sure its parked next to a nicer boat.

[TmMorris]

Yup. The craft insure policy is cheap for a reason. What you're really getting is the liability and third party cover.

It's worth checking your household insurance to see what chattels that covers away from home.

[Pikey Dave]

I have an agreed value policy with Mercia Marine. Not the cheapest, but good cover & service.

[Blankton]

Thanks. Will look at that.

[beamishken]

Personally I wouldn't worry too much about the craftinsure policy wording. I've made a couple of claims & been closely involved with two other folk who made claims & craftinsure were very fair with all the claims. When your dealing with a claim your speaking directly with the loss adjuster who will ultimately settle the claim & on every occasion in my experience they were very good. They have to start somewhere with a value so need a baseline figure to start with hence the formula however like motor vehicle claims the first offer is rarely set in stone & can be negotiated. Motor insurers use glass or cap guides to determine their settlement figures but if you dissagree & find several examples of similar vehicles to yours at higher prices they will often increase settlement rates. I'd be surprised if craftinsure didn't work in a similar manner having dealt with them a few times.