Depreciation on RIBs

Puffin · 12 July 2011, 15:54

Just had a quote for my insurance renewal. I have a 6m Humber Destroyer with 90hp suzuki on the back and single axle trailer purchased July 2009. Came to do my insurance and questioned the quote I was given. Towergate Mardon pointed out to me that the sum insured was still the purchase price and that in the event of total loss they would only pay the market value so no point in insuring for more than this.

My question is, has anyone got a rule of thumb to apply to depreciation on RIBs to give an idea of market value. OR Any dealers out there give me an idea of what a low hours, (circa 90hrs) Suzuki DF 90, 6m Destroyer with dual console 4 seats Garmin 555 plotter and radio, etc is worth?

Paul

two stroke mick · 12 July 2011, 16:03

I would estimate 60% of the purchase price

Nick Hearne · 12 July 2011, 16:06

I have been led to believe it is 10% depreciation per year!

Poly · 12 July 2011, 16:18

Quote:

Originally Posted by Puffin

My question is, has anyone got a rule of thumb to apply to depreciation on RIBs to give an idea of market value. OR Any dealers out there give me an idea of what a low hours, (circa 90hrs) Suzuki DF 90, 6m Destroyer with dual console 4 seats Garmin 555 plotter and radio, etc is worth?

Your real question is how much would it cost you to go and buy the equivalent to replace it. You can probably get an idea of that on B&O, the classifieds here, back of rib international etc. Whilst there is no point being 'overinsured' if they won't pay out the full amount, it would be crazy to be under insured. I'd be surprised if it made that big a difference to your premium.

I'd shop around - I'm not sure if anyone offers an "agreed value" rather than arguing about the cost of replacement after the event?

Quote:

Originally Posted by two stroke mick

I would estimate 60% of the purchase price

Quote:

Originally Posted by Nick Hearne

I have been led to believe it is 10% depreciation per year!

The number I have heard is take the vat off, then deduct 10% per annum (compound) for each year. So that's more like 70% of original price for a 2 yr old boat. I should point out that there are people on here who would argue that is far too aggressive a rate of depreciation.

two stroke mick · 12 July 2011, 16:46

Given the current state of the market I think that good ribs are currently making small money

Pikey Dave · 12 July 2011, 17:36

I had exactly the same situation with bishop skinner, they were happy to take my premium for the insured value, but the small print said "market value" in a total loss. I am now insured with Mercial Marine, they have an agreed value & better cover for a similar price. They also cover me from The Elbe to Brest with no offshore limitations.

Hightower · 12 July 2011, 18:28

Porthcawl Insurance do an agreed sum policy at reasonable cost

kedzior · 12 July 2011, 23:21

Try Pantaenius, they don't have problem with questioning prices. They pay what you quote.

Dry Run · 13 July 2011, 08:43

We normally go by a the rule of thumb of "new purchase price less the VAT then 20% for the first year and 10% for every year after that". However, that is a "rule of thumb" and can be distorted if you've added equipment, used commercially, done a lot of hours, chosen a weird colour scheme or engine, etc.

dnv · 13 July 2011, 18:03

Quote:

Originally Posted by kedzior

Try Pantaenius, they don't have problem with questioning prices. They pay what you quote.

Can support that. Have been customer of them with a J24 (WAFI), am now with the Parker. They are not an insurance, they are a broker. Have a fixed price insurance with copayment and with a clause "new for old". If something breaks (or is stolen) I get it new.

Sent from my iPhone using Rib.net

Puffin · 14 July 2011, 15:46

Thanks for all the replies, phoned Pantaenius and they declined to quote saying they would only insure a 6m RIB if it was as a tender to a larger yacht...........if only!!

Will try some of the other suggestions though.

jambo · 14 July 2011, 17:09

Hi Paul have you tried Euromarime. I have used them for years and they offer two types. Hope it helps. Cheers Billy

kedzior · 14 July 2011, 17:23

They had no problems with my 7m A21, so it looks lenght finally makes a difference...

They were a bit concerned, because she was used 'commercially' before.

Puffin · 15 July 2011, 14:51

Thanks everyone, most competitive quote and coincidentally best cover, came from Porthcawl, certainly worth shopping around for.

Paul

North Shore · 15 July 2011, 19:11

Towergate Marden - excellent service for 14 years...re depreciation - a well kitted SR4 with a 40 Merc - bought for £3,500 with Rollercoaster - always covered even when on the water and well looked after - sold for £3,350 with trailer 10 years later - depreciation £15 a year - alright it took time to cover up after use but it was worth it and new owner is absolutely delighted.......