I didn't pay much for my 1976 Pearson but I have a lot of money into it. Over the years as the restoration has progressed I have raised the replacement value accordingly with my insurance company (State farm). Recently I felt $30K was too low and raised it to $36K. My agent now wants some documentation to support a replacement value of $36K.
I'm not ready to order a marine survey. But I am looking for alternate ideas as to what I can do establish an accurate replacement value for my boat.
Thanks for any feedback up front.
Pete Pearson 365 Ketch
I am no expert, but I do have an agreed value insurance policy on my boat that has been in place for a long time. When I got it, it was just a matter of telling them the amount I wanted to be covered for. Are you talking "agreed value" with them? If he wants something a little more substantial to show you could print off a number of for sale listings. There are enough $40,000 + out there. A broker could also give you the BUC book values. I have no idea what they might be though. You may also list what you have done to restore the boat to help your case.
I am a full time broker with Edwards Yacht Sales, so I deal with boat valuation on a daily basis.
BUC value will be extremely low, as it usually is for most everything other than newer trailerable powerboats. Brokers and surveyors generally use data from Soldboats.com, which is a paid MLS database that shows actual selling prices from Yachtworld. The comps on vintage Pearsons are all over the board, due to so many variables with condition.
An insurance survey would be the only thing that could give the company what they need to assign the boat more value.
Next time you are out of the water, you could have one done. An insurance survey is not like the pre-purchase survey that you probably had done when you bought the boat. It should not be too expensive, probably around $300-$400. They are usually pretty quick.
Most companies will give you an agreed value policy, but it will be considerably more than a depreciating value policy on an older boat. For reference in Florida, I have an agreed value policy for $50k with BoatUS, and my premiums are just over $2,000 annually. It's high, but worth it to me, as I love my boat!
I hope this helps.
-Kevin
Pete,
I have an agreed value of $50K on an 1981 P367 with BoatUS - annual cost about $650 with restricted sailing grounds.
Garner
Pete,
If your insurance company is giving you a hard time regarding you handing them additional money toward your perineum payments, what are they going to do when you have a claim? A six thousand dollar increase for a 36 foot boat is not even a partial improvement in electronics. Its not even a bottom job or a couple of sails. I suspect that these people are not boaters. Perhaps the correct question is... what is the number of everyone elses insurance company.
Dale
I am using $50,000 valuation and my premium is a little less than Garner's. The area you sail in makes a difference. I was told on the Great Lakes they base it on a 6 month season. No Hurricanes...
If you want, I have three surveys on Pearson 365s that I could send you. Send me a message with an email address if you want them. They might not support the value you want though. They were not boats that are as nice or well equipped as yours, so adjustments would have to be made. Ours is in Alaska, and boat prices are a lot higher up here than Florida and California.
The Florida one came in at $27,900, a nice boat in good condition, but dated electronics.
A nice boat with a few problems in California came in at $28,000 in California, same boat adjusting for Alaska location only came in at $40,000. (Money to be made sailing boats to Alaska!).
Ours with a pretty good list of somewhat expensive issues at the time, and dated but functional electronic came in at $48,000 in Alaska.