Agreed Value Insurance

[Dave W]

The insurance is up for renewal on my competition motor soon and for a while now I've been thinking about an agreed value policy. On paper it's a 1990 Defender worth a couple of grand but with the amount of money and time that's gone into it it'd cost me in the region of around £20,000 in parts if I had to build another one to the same spec.

I've phoned one "4x4 specialist" (Sureterm) who advertise on their web site that...

Agreed value: If you have added lots of accessories or worked hard on major modifications to your 4x4 you may wish to have the insured value of your vehicle reflect it's true worth. Sureterm Direct Insurance can include an Agreed Value upon request at no additional cost on most 4x4s.

But they have said they won't actually insure an agreed value above the value you could sell the vehicle for, which, as we all know, is never anything like the cost of building one. Even with me providing parts receipts to the value of £25,000 they weren't interested.

Is this par for the course or are there brokers out there that can arrange a genuine agreed value based on what it would cost to replace rather than what you could sell it for as a whole ?

[cieranc]

If that's the case, I would take your Landy to a few LR specialists, ask them to quote you on building one to the same specification. Get it in writing.

Then (bearing in mind they'll charge for workshop labour) give the quotes to the insurors, and explain that is what it would cost to build one like for like.

Alternately, barter a policy that replaces your Landy like for like, and make sure you have every nut and bolt photo'd/documented.

That way, if you even need to claim, the onus is on them to replace the vehicle, not just pay you out for it.

This is a little known fact, that insurors are obliged to replace the vehicle. Them paying you out in cash just saves them the legwork of having to source a similar vehicle to the same specification. But if you dug your heels in, and refused the cash payment, that's exactly what they'd have to do, replace it.

[Defender]

This is a long story so apologies but this was my experience:

I've had this same problem, originally my vehicle was insured with Firebond who agreed to insure the vehicle and aproved accessories as long as I provided photographic evidence. My vehicle was under a certain value so I did not need to provide a third party valuation report but this was an option should the value have been higher.

They were exceptionally helpful and I explained that the accessories were off road related and that upon claiming I would want enough money back to build it again exactly as it was should the worst happen using a similar age vehicle. I even said it had to be an agreed value because if I wanted to buy an 8274 for example the value of it would not have changed if I need to replace it by buying a new one if my vehicle/winch was written off. All hunky dorey not a problem sir was the response and I was duly issued with a certificate of guarunteed value all accessories to be replaced new, the vehicle was included in this certificate but as I understood it this would depreciate as it would on a normal policy and I would only receive market value, seems pretty fair to me.

Here begins the problem - Firebond were taken over by Footman James and they do not provide the same policy/level of cover. They don't have an issue with the modifications but they will not reimburse me for the accessories if the vehicle is written off so I'm back to just getting afew grand for a 95 Defender. The only option that I thought of afterwards was perhaps I should have added the buy back option of my own vehicle from the insurance company so I can remove any accessories that survived myself......maybe this would be an option for you if you can't find something suitable?

They have however said that next year my vehicle will be acceptable to be insured as a classic vehicle (Yours should be now judging by the age) which I can then have an agreed value policy.......I cannot comment any further on whether this will cover accessories or not a I was so annoyed by this point that no agreed value was available to me I thought I'd research it at a later date when I'd calmed down...........this thread has reminded me so I may start digging around in the next few weeks and see what I can find, would you also please post if you manage to sort the problem.

I do have to say that although Footman james changed the policy (It probably came through the post and I didn't read it properly and binned it 'MY OWN FAULT I KNOW') they have been very helpful to me and it will be my first port of call when researching this, just didn't want anyone to think they are rubbish even thougfh they couldn't solve the problem they were still helpful. Oh, I think I also have to say I have no association with this company for forum rules.