The sum insured

Saga offers an agreed value for its boat insurance policies.  This means that, in the event of a total loss claim, we will pay the full sum for which the vessel is insured. Therefore, at the start of the policy, it is important that the sum insured is an accurate reflection of the vessel’s true replacement value.

The value agreed should be the cost of replacing the vessel with one of a similar age and condition, and should be reviewed at each renewal to reflect depreciation.

Calculating the sum insured

Purchase price

With a new purchase, the most accurate reflection of value is the price paid. You must then add the cost of any gear or equipment bought after the completion of the boat purchase.

Additional equipment

The sum insured should be increased to cover extra gear, but it is also wise to specify the values of individual items such as outboard motors, dinghies and trailers. If further equipment is bought afterwards, insurers must be advised to make certain that the insurance has been extended to cover them.


If it is felt that the sum insured needs to be increased beyond the agreed level, insurers may ask for a valuation. This can be obtained as part of a survey or, if no survey is being done, from a Yacht Broker. This valuation will represent what the surveyor or broker feels is the current market value of the vessel.

The vessel should be insured for its current market value. However, if the vessel is put up for sale and the Broker’s suggested asking price differs from the sum insured under the policy, the sum insured should be amended to reflect the newly determined market value.


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The sum insured