The difference between Market Value and Agreed Value
In the event of a total loss claim, the amount paid to you will be determined by the value of similar vessels (of the same make, model & age) on the second-hand market. For example, if you bought a boat brand new for £10,000 two years ago and it’s only worth £7,000 second-hand now, insurers will pay £7,000 (less any policy excesses).
In the event of a total loss insurers will pay the lower of:
- the sum insured on your policy schedule
- the most recent value of your craft obtained by an independent qualified surveyor or yacht broker
- the advertised price or agreed sale price