'Gap insurance' for classics?
in [Classic Cars]
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From: Dave Plowman (News) on 8 Dec 2008 04:43 In article <XsGdneBb6p7qfaHUnZ2dnUVZ8vednZ2d(a)pipex.net>, Kevin Poole <nov2008(a)mainbeam.co.uk> wrote: > I once a owned a rather splendid, large, Edwardian semi: nicely > detailed, good quality joinery, ornate plasterwork, large, high rooms, > and with a four-car garage. Unfortunately, it was also on a very busy > road in one of the less favoured areas of Derbyshire, so its market > value was around 60% of its rebuilding cost. My insurers calculated a > premium based on its rebuilding cost, and did not include a "write-off" > clause. Isn't this an exact analogy to the OP's requirement? The rebuild formula is based on doing likely repairs after a major incident - fire or water damage etc - and restoring to as was. But if the house was 'totalled' would they pay more than market value for a similar one? Most would want to simply move under those conditions rather than wait for site clearance and the construction of a new house. I'm in the opposite position - or was. I bought this Victorian house in the '70s and the rebuilding insurance value - set by the BS - was twice what I paid. Over the years this has been index linked but was recently only somewhat about 1/3rd the market value. And we wonder why there has been a property crash in some areas... -- *Letting a cat out of the bag is easier than putting it back in * Dave Plowman dave(a)davenoise.co.uk London SW To e-mail, change noise into sound.
From: Conor on 8 Dec 2008 05:55 In article <IZ4%k.3131$3M4.2167(a)newsfe20.ams2>, Phileaus Leaius says... > Adrian wrote: > > Phileaus Leaius <whos(a)prettyboy.then> gurgled happily, sounding much like > > they were saying: > > > >> Hmmm. 'Gap insurance' offers a secondary premium over and above your > >> insurance policy to cover the shortfall between what your insurance pays > >> out and the actual cost of replacing your car. > > > > Not quite. It covers the shortfall between the value of the used car your > > insurance has just paid the value of, and the cost of replacing it with a > > brand new equivalent. > > Exactly the scenario I was attempting to cover, then. > No. You're trying to cover the gap between what it cost you to restore it and what it costs to replace it with a like for like. -- Conor I only please one person per day. Today is not your day. Tomorrow isn't looking good either. - Scott Adams
From: Conor on 8 Dec 2008 05:57 In article <XsGdneBb6p7qfaHUnZ2dnUVZ8vednZ2d(a)pipex.net>, Kevin Poole says... > So it's not true to say > "Insurers have and will only ever insure whatever is being insured for > its market value" > I was being simplistic. -- Conor I only please one person per day. Today is not your day. Tomorrow isn't looking good either. - Scott Adams
From: Dave Plowman (News) on 8 Dec 2008 06:05 In article <6q4conFapmldU3(a)mid.individual.net>, Conor <conor_turton(a)hotmail.com> wrote: > In article <IZ4%k.3131$3M4.2167(a)newsfe20.ams2>, Phileaus Leaius says... > > Adrian wrote: > > > Phileaus Leaius <whos(a)prettyboy.then> gurgled happily, sounding much > > > like they were saying: > > > > > >> Hmmm. 'Gap insurance' offers a secondary premium over and above > > >> your insurance policy to cover the shortfall between what your > > >> insurance pays out and the actual cost of replacing your car. > > > > > > Not quite. It covers the shortfall between the value of the used car > > > your insurance has just paid the value of, and the cost of > > > replacing it with a brand new equivalent. > > > > Exactly the scenario I was attempting to cover, then. > > > No. You're trying to cover the gap between what it cost you to restore > it and what it costs to replace it with a like for like. I read it as the car is so special in spec it can't be replaced by another - unless those 'mods' are made to it too. A prime example could be a Morris Minor updated with all the bells and whistles which make it far more expensive than a good standard one. But a fashion some years ago - there were three such round here. All replaced by Prius. ;-(. -- *Xerox and Wurlitzer will merge to market reproductive organs. Dave Plowman dave(a)davenoise.co.uk London SW To e-mail, change noise into sound.
From: Conor on 8 Dec 2008 06:26
In article <500a6d2cebdave(a)davenoise.co.uk>, Dave Plowman (News) says... > I read it as the car is so special in spec it can't be replaced by another > - unless those 'mods' are made to it too. > So the same as quite a few modded MK1 Capris I know. There's a guy I've met who owns an original Swaymar Capri (to say it was a shock to see it there when he opened the garage door to get some bits I'd bought off him is an understatement). There were only ever two made and one got burned out. He's spent £10,000's on restoring it. It is completely and utterly irreplaceable yet it has a market value which is less than the restoration value by a massive amount and that's all it can be insured for. -- Conor I only please one person per day. Today is not your day. Tomorrow isn't looking good either. - Scott Adams |