Page 81 - Bush 'n Beach Fishing magazine

B
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OATING
OATING
& marine
Insights into boat insurance
AUnder the hammer – what’s you boat really worth
KEY component of under- ing in that brand, or a very experi- the works. Establish a clear understand- standing insurance is recog- enced boat broker who is prepared ing of what will be required before the nising that it is a safety net. to document the valuation and stake insurer considers offering cover for that
It is not a facility by which you can his reputation on it, the market value particular vessel.
profiteer. It is only there to take care of problems when an adverse event hap- pens – one that is covered by the insur- ance contract and its conditions within the Product Disclosure Statement.
would remain at $1000.
Boat auctions and used boat im-
A nd here’s another heads-up for those tempted to purchase used ves- sels from the US at what might in- itially appear to be a heavily dis- counted price. That twin outboard, seven-metre centre console purchased and imported into Australia by a pri- vate person, is not going to attract the same true market value as a vessel of the same brand, model and vintage, originally imported new into Austral- ia by an authorised local dealer for that brand.
So, what does that mean in the real world? It means that there are going to be a heap of questions asked if you purchase a boat for $1000 and then seek to insure it for $10,000. Yes, bargains do exist, but so do misrep- resentations.
ports add another dimension into assessing a boat’s value. For exam- ple, a boat might be purchased for $1000 as a ‘repairable write-off’ at auction. Among other things, that terminology means the vessel will need significant work before it can return to service.
If you purchased a boat on the open market for $1000, then that is con- sidered its current market value. The seller was happy to accept $1000, you were happy to pay $1000 – there was a meeting of minds that $1000 was an appropriate price to pay and so there- fore, quite understandably, $1000 is then considered to be the market val- ue of that particular boat.
If you undertake that work yourself as an unqualified boat builder and then secure its registration, do not au- tomatically think the boat’s value has jumped significantly. Marine insurers are concerned about the serviceabil- ity of the vessel. They will look to establish the extent of repair works undertaken and to see whether an appropriately qualified boat repairer undertook the repairs. If they were, once again, they will then seek a market valuation from a recognised authority before progressing to an insurance contract.
There also potentially is a raft of legal issues which surface once you, as a private citizen, become the ‘im- porter’ of a vessel. They can relate to responsibility for safety recall issues upon further resale of the vessel, environmental and structural com- pliance issues, absolute proof of un- encumbered ownership at the time of purchase, as well as others.
Yes, it is quite possible that the boat was worth substantially more than $1000. But in the absence of further documented evidence, which typical- ly would be a proper value appraisal undertaken by a recognised authority such as a reputable boat retailer deal-
As always, it is prudent to discuss your plans with a specialist marine insurer like Nautilus Marine Insurance, before making the purchase and undertaking
You may have purchased the vessel at a landed cost of $80,000 but that does not mean the boat automatically now has an insurable value of $145,000 simply because a genuine import from a franchised dealer is commanding that value for the same model.
www.bnb shing.com.au Bush ’n Beach Fishing, June 2020 – Page 81
One of the key advantages of deal- ing with a specialist such as Nautilus Marine Insurance, is that they under- stand boats, they understand boat val- ues, they understand marine-related circumstances which could arise such as the requirement for environmental clean-ups, and they know how to help you secure the coverage best suited to your vessel.
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Any advice contained in this article is of a general nature only and may not apply or be right for you as it does not take into account your objectives, financial situation or needs. Before acting on any advice provided in this article, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs.