Home / For international owners / Cover in detail
Insuring a classic or wooden boat: why the agreed value decides everything
Short answer
A restored wooden boat or a vintage yacht is often worth far more than any depreciation table
allows.
To insure a classic properly, look for an agreed value backed by a marine surveyor's valuation and
a file of restoration receipts.
A varnished mahogany runabout, a clinker built launch or a sixties yawl with her original spars: for their owners, classic boats are a labour of love and often years of evenings in the shed. In insurance terms they run into a problem. Many policies settle a total loss at actual cash value, which means the replacement cost less depreciation for age and wear. On a boat built fifty years ago that sum can be painfully small, even the week after a full restoration.
The answer is an agreed value. Owner and insurer settle the figure when the policy starts, and in a total loss that figure applies, with no argument afterwards about age or wear and tear. The basis is a written valuation from a marine surveyor who knows classic and wooden boats, supported by the restoration file: invoices for timber, fittings, an engine rebuild and sails, plus photos before and after. Read the wording closely, because some policies attach conditions to an agreed value on older boats, such as an age limit or proof that the boat will be rebuilt.
Partial losses need a careful look too. Original parts are hard to find, repairs to planking and frames need a specialist yard, and both take time and money. Ask whether partial losses are paid without a deduction new for old, and whether the yard of your choice is accepted. Lay the boat up dry and well ventilated, record her condition with dated photos every spring, and ask for the agreed value to be raised after each significant piece of work, with a fresh survey if the insurer wants one.
Worth remembering
Actual cash value
falls with every year
Agreed value
what was settled applies
A classic boat does not belong in a depreciation table.
Questions
What owners ask us about this
How should I insure a classic wooden boat?
Ask for an agreed value based on a marine surveyor's valuation. Actual cash value rarely reflects what a restored classic is really worth, because it is reduced for age.
What is the difference between agreed value and actual cash value?
An agreed value is fixed when the policy starts and applies in a total loss. Actual cash value is worked out after the loss and falls with every year of age and wear.
Do I need a survey to insure a classic boat?
For an agreed value, almost always. A surveyor familiar with classic boats assesses condition, originality and market value, and your restoration receipts back the figure up.
Related
Not sure whether you qualify?
Whether it is “Insuring a classic or wooden boat: why the agreed value decides everything” or another question: send us your residence and the flag your boat flies. You will get a straight answer in one email; including a no, if that is the answer.
Was this useful?
