When damage is significant, insurers weigh up the cost of repair against the value of your boat or caravan. Understanding how that decision gets made can help you navigate the process with confidence.
There's no fixed percentage rule for boats and caravans like there sometimes is for cars. Insurers generally assess repair cost against the vessel's value on a case-by-case basis.
If your boat or caravan is facing a significant repair, getting a proper assessment and quote early helps ensure the decision is based on accurate information.
When damage is extensive, an insurer needs to decide whether repairing the vessel is the more sensible option compared to paying out its insured value and writing it off. This generally comes down to comparing the cost of a proper repair against what the boat or caravan is actually worth.
Unlike cars, which in many cases follow a more standardised percentage-based threshold in some jurisdictions, boats and caravans are typically assessed individually, taking into account the specific damage, the age and condition of the vessel, and the realistic cost of restoring it properly.
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If your policy is based on agreed value, the amount you and your insurer agreed on at the start of the policy is generally what's used in this comparison, removing some of the uncertainty. If your policy is based on market value, the assessed value at the time of the claim is used instead, which can sometimes lead to disagreement if you feel the valuation is too low.
Knowing which type of cover you hold matters when this kind of decision comes up.
If your insurer determines the cost of repair isn't justified against the vessel's value, they'll generally pay out the insured value (less any deductible) and the vessel becomes the insurer's property, often referred to as salvage.
In some cases, you may be able to request to keep the vessel and have the payout reduced by its salvage value, allowing you to repair it independently if you choose, though this varies by insurer and circumstances.
Since the decision often comes down to comparing repair cost against value, having an accurate, detailed quote from a qualified repairer is an important part of the process. A properly scoped quote that reflects the real cost of doing the repair correctly, not cutting corners, gives your insurer the right information to make a fair assessment.
If you need fibreglass repairs in Brisbane or South-East Queensland, get in touch with us today. We're happy to discuss your repair and provide advice on the best solution.
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Disclaimer: This information is general guidance only and is not financial, legal or insurance advice. Policy terms, exclusions and claim outcomes vary by insurer and individual circumstances. Always refer to your specific Product Disclosure Statement (PDS), or speak with your insurer or a licensed adviser, for advice relevant to your situation. LBM Fibreglass accepts no liability for any action taken in reliance on this general information.