Brett I dont doubt that you are right, and insurance companies are among the most despicable, however I dont understand what you are saying. If you insure for $250k and have to make a total claim then $250k is the payout. In fact the insurance company is the big winner in the case of a total claim in this situation because the difference of $250k would never have been recouped in premiums. At say $2500 per annum premium difference (1% of $500k being $5k premium so in this case 1% of $250k being $2500), it would take 100 years for them to receive this much more in premiums so they win.swanncat wrote:mahnamahna,
Be careful under insuring, I've heard stories of people insuring a vessel lets say for 250k when real value is 500k and
having had to make a total claim and being paid out 125k...They dont seem to like being didled on the premiums..
If $2500k a year is all the premium you can afford, its better to be half insured than not insured at all. So I wouldnt be complaining if I was the insured either. Agreed value is agreed value and its not just for those that wish to overvalue their boats because of an unrealistic value of their labor of love.
I got caught being under insured, with a theft insurance claim in my 20's. I used a broker, told him that my only possession of value was my stereo system and everything else was second hand and old so when I got the policy I didnt read it, when I made a claim for the value of the stolen stereo (the only thing stolen of course) I only got half me claim because there was a clause that said total of any single claim in case of theft cannot exceed 20% of total insured.
But so long as you check there are no such clauses, and you have an agreed value policy, I cant see how this would be a problem in the case of a total right off loss and being paid all that you had insured for. Not from a complaint against the insurance company that is. I would not be happy to lose my boat for half its value in the initial few years and intend to insure for its full value, but as the boat gets older, I get more experienced and I also get older and my income declines, I would consider an agreed value if I found I was struggling to afford the full premium and I cant see how this would be an issue for the insurer.