If you are a boat owner or are looking to invest in a boat, then you need to consider how much your boat is worth for a number of reasons. A key one being that you need to know the value of your boat before you can obtain adequate insurance to protect what can be both a valuable and precious investment.
How much can boats and yachts be worth?
Boats and yachts can vary in price significantly depending on numerous factors such as:
Boat age and depreciation
Some classic and vintage boats can prove to be valuable so you’ll want to know the history of the boat– is it a collectible, was it considered luxury or a workboat? In newer boats, depreciation is also a key consideration as a new boat can considerably drop in value after the first 5 years
Boats come in all manner of sizes from dingys which are typically under 15 feet long to mega yachts which can be anything longer than 50 metres. Conidering the practical issues of maximum sizes for mooring and minimum requirements to join yacht clubs will also help determine value.
Type of boat
From fishing boats and dinghys to cabin cruisers and houseboats – vessels can have very different purposes and uses which affect their value. Quantifying how much boats can be worth is difficult due to the wide range of boats available.
All boats will require some level of maintenance, for older and antique vessels the maintenance and upkeep required by an older boat can reduce it’s value. Condition is key, so making sure you have a survey is a wise choice.
Boat location affects value
Just like anything else, high demand can increase value. If a boat is located in a sparsly populated area, buyers will likely to have travel to view it which can minimise interest and drive down prices.
Not all houses and cars are worth the same and vary in price significantly. The same is true of boats. You’ll need to take all factors into consideration when working out exactly how much your boat is worth.
Take a look at this article which looks at some of the most expensive yachts in the world showing just how much a boat can be worth.
How to get a boat valued
Given the huge variation in worth of boats and yachts, it is important to have your boat valued properly and ideally by someone who has expertise in the type of boat or yacht that you own.
Do your own research
You could use the internet to do your own research into how much your boat is worth. Looking at sales listings for similar types of boats for example can give you an idea of how much your boat could be worth.
Work with a professional
Whilst doing your own online research is a great starting point and can give you an initial idea of how your boat may be worth, your findings will only be as good as the data that you can access.
It may therefore be advisable to work with an expert to get a valuation for your boat. They may have access to more data about current market prices, sold boat prices and general expertise in boat valuations.
When choosing a company to work with to value your boat you may want to check if they are a member of certain bodies such as the British Marine Foundation (BMF).
Why is it important to insure your boat?
There are two key reasons to have insurance in place for your boat
To cover damage you cause to other people’s boats
Having at least some form of insurance in place for your boat will be a requirement from many of the UK’s harbour’s, marinas, sailing clubs and other mooring providers. It is likely that they will require that you have at least third party insurance in place.
Third party insurance will usually cover your liability for claims from third parties, including damage or injury. If for example you crash into another boat, damage to the third parties’ boat would be covered by your policy.
To cover your own boat
If your boat were to be stolen, sink or suffer accidental damage you would want it to be covered by insurance. This type of thing happening to your boat wouldn’t be covered by third party insurance alone. To cover these eventualities, you would need to take out a more comprehensive policy.
Given the complexities of boats and the wide variation in type and value of boats, working with an expert to arrange your cover is recommended.
High Net Worth Insurance
If you have a range of high value items you may be best placed to consider a specialist high net worth insurance policy where you can cover a range of high value items with more extensive cover than a standard insurance policy may be able to provide. Insuring high value items can be complex, and it is vital to get it right given the value attached to these possessions. That is why working with an expert insurance broker in this area can give you added peace of mind.
At Anthony Jones we offer a bespoke service to individuals needing to protect high value possessions. We work closely with our insurance partners to provide insurance solutions for many types of high value possessions, including yachts, sailing and speed boats. Talk to us about our High Net Worth Insurance offering today on 0208 8290 9086 or email us at firstname.lastname@example.org.