Who owns the wreck once the insurer pays?

Short answer

On a total loss the salvage value is usually deducted. Then the wreck remains yours, along with the duty to dispose of it.

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On a total loss the sum is rarely as simple as expected. The insured value is indemnified, and from it the salvage value is normally deducted, that is, whatever the damaged boat is still worth. And that is where the trap lies: if the salvage value is deducted, the wreck remains your property. You get less money and keep a problem.

A wreck is not something you can simply leave. The owner carries the duty to remove and dispose of it properly, and a GRP hull is expensive to dispose of. A harbour or an authority can require removal, including years later. The apparent credit for the salvage value can therefore turn into a net burden.

So on a total loss always work through both routes. First: is the salvage value deducted, and how was it determined? A notional salvage value with no actual buyer is realistic only if you can actually sell the wreck at that price. Second: can you instead hand the wreck to the insurer? Many wordings provide for that or will agree to it, and for you it is often the better route, because disposal and liability go with it.

Can I keep the wreck?

Yes, that is the normal case where the salvage value is deducted. But set the disposal costs against it before you celebrate.

How is the salvage value determined?

Usually by survey or by a salvage bid. Ask on what basis, and whether there is an actual offer or only an estimate.

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