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Old 10-20-2016, 01:21 PM   #21
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Correct me if I'm wrong: "full disclosure" does not apply to boats.
Yes and no. There is no specific law as such. However, when asked, must answer honestly or run the risk of fraud. Generally a buyer is going to want to know the history of a boat and find it one way or another. Not many secrets around. Just asking for all maintenance records will tell them, if all are supplied.

Now, if a buyer finds out and it's not been previously disclosed, that buyer will definitely get more suspicious and likely run, wondering what else wasn't disclosed.

I love what real estate has done, at least in some places, with a form they require the seller to fill out and it has many pages covering every aspect of a house.

Full disclosure is also a moral element to many that they will do without any specific law.
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Old 10-29-2016, 08:52 PM   #22
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Very educative post, thanks you..
I'm one of that guys who pays insurance "just in case"... never, ever use it (until now) so find the "fine letter" is a good educational process..
Thanks you for sharing!!
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Old 10-29-2016, 09:58 PM   #23
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In Australia the Insurance Contracts Act raises a duty of disclosure. Some things only the "insured" can know. Classic example is proposing house insurance, forest fire at the back fence, wind towards the house. The insurer won`t know, the property owner does, the insurer needs to properly assess the risk.
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Old 04-12-2017, 12:51 AM   #24
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Most yacht policies are agreed value policies. If you bought a new boat 10-15 years ago for, say, $500,000 and have paid the premiums all along, an agreed value policy will pay out $500,000 for a total loss. That boat may well only be worth $220,000 today. So you have an engine room fire and it will cost $200,000 to repair the boat, but $500,000 if it is declared a total loss. The insurance company will choose to repair it. The math is easy.
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Old 04-12-2017, 01:45 AM   #25
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I could only get market value on ours, market value being the price we paid. (Depressed market and desperate seller)
Sad part is it would cost 4x what I paid to replace her and no amount of arguing or providing comparable examples, not that there are any, would help.
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Old 04-12-2017, 02:33 AM   #26
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"Comparables" don`t have to be exact matches. Valuers can take something similar, and apply a percentage, + or -,to make it "comparable" to another boat. Yours might be rated as 20% better, 10% worse,etc, if you have 3 or 4 "comparables" you get a figure, even without an identical boat being sold. It works in real estate.
Several years ago, Club Marine said I could take my boat to one of their nominated valuers, and they would accept the valuation to change the sum insured. Can`t say if it still applies,or know your insurer`s identity.
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Old 04-12-2017, 07:09 AM   #27
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I doubt you will get replacement cost cover for a boat. Market value is OK if you know the real market value, and to get that you should use a valuer that the insurer has on their approved list. Once you have it you ought to be able to get an agreed value policy.

Simi, you ought to consider doing this. You might not like the valuation, it could well be less than you paid, but best to know that up front. Currently you are paying a premium calculated on what you paid for the boat. If the market value is less then you are over-paying your premium. You would be like the OP: have an over-insured boat.

Further, with a market value cover if there is a loss it will likely be paid out on the market value adjusted for its location at time of loss. If the loss is in a remote area you could end up with a total loss settlement that is much less than what you think it should be based on what you paid for the boat. There is no point in being over-insured - you are paying a higher premium than need be, and get no benefit at all.
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Old 04-12-2017, 09:28 AM   #28
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When I was in banking I financed many ships/boats in the oil patch in Louisiana - during a downturn in the industry there would always be many suspicious fires - I always referred to them as friction fires - ie when the mortgage rubs up against the insurance policy
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Old 04-12-2017, 05:11 PM   #29
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Simi, you ought to consider doing this. You might not like the valuation, it could well be less than you paid, but best to know that up front. Currently you are paying a premium calculated on what you paid for the boat. If the market value is less then you are over-paying your premium. You would be like the OP: have an over-insured boat.
.
Before we bought her I had a well respected boat builder who specialises in trawlers and did his time at the yard where she was built go through her with me.

Rest assured, we did not pay to much and we are not OVER insured, far from it.
He was gobsmacked at how little we paid, we pretty much stole her.
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Old 04-12-2017, 06:35 PM   #30
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Before we bought her I had a well respected boat builder who specialises in trawlers and did his time at the yard where she was built go through her with me.

Rest assured, we did not pay to much and we are not OVER insured, far from it.
He was gobsmacked at how little we paid, we pretty much stole her.
In the case of a purchase way below market value, depending on the insurer, there must be a fair chance taking the valuation > a revised sum insured method of increasing the sum insured. Though, it is odd the seller took a low amount when market value was much higher.
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Old 04-14-2017, 02:44 PM   #31
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. Though, it is odd the seller took a low amount when market value was much higher.
Most everyone wants shiny plastic under 45 ft boats
Very few wanting big timber boats.

Circumstances against PO as well Including new woman who doesn't like boats, living interstate, retired and bleeding $20,000+/year on marina and upkeep for a boat he no longer used.
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