Post Collision Repair or Total

[sailorboy1]

From an earlier thread; I had a collision with a fishing vessel that ripped all my mast/sails/rigging away. I have now gotten the estimate, which I feels misses things. I am pretty sure my wife and I are out of boating after this so it comes down to how to handle getting out.

My Agreed Value is $59,900 (under insured because of being in Florida). Right now the estimate is $56,250. I can see missing items on the estimate that would I feel once added will exceed my insurance value. So the choices I see are:

1 - Press to get the estimate increased to more than the Agreed Value, get a check check for $59,900 and walk away easy.

2 - Repair the boat and risk that it will be more than Agreed Value that I have to make up the difference of (if it costs less it means nothing bottom line to me). Then sell a repaired boat that will have new sails, mast, boom, standing and running rigging,new mast lights, radar, VHF antenna. Currently the lowest priced Hunter 410 list for sale is $85k. I don't want to draw out my pain of selling holding out for the highest price so was thinking $80k. Assuming the repair runs $5k over the Agreed Value I would away with $75k

So do 1 and get out easy and collect $60k, or do 2 and HOPE to sell easy and walk away with $75k. $15k is $15k, but I am not sure it is the real driver as there is a lot of emotion still in play.

What would the faceless forums members do?

[Panope]

Do you have a third option of pocketing the repair money and selling the boat "as is"?

Edit: Sorry, I see you answered that already.

Never mind

[rslifkin]

That's close enough that you can probably convince the insurance company to total the boat if you want to go that route.

The rest of the question comes down to a few things: how much of what it will take to repair involves some unknowns that may drive up the price? Would you want the boat gone ASAP with no thought of using it at all after the fix?

If you'd want the boat gone right away, then unless the fix is a very known quantity, I'd probably push to total it. If you're still a bit undecided on your boating future, then fixing might be worth some consideration. You'd get the opportunity to fix it, see if you still want to have a boat and then decide to either keep, sell and replace with something different (especially if it wouldn't be your full time home anymore), or sell and get out of boating entirely.

If they total the boat and pay out, is there a "buy back what's left" option? If there is and the buy back is cheap enough, you could always try to do a cheaper repair (possibly with a used mast or something) as time permits, and then sell the boat. But that's probably not a path you want to go down.

[Kettlewell]

Repairs always cost more in time, money, and aggravation than estimated. Cost overruns of 50-100% are not uncommon. I'd take the $60K and walk away.

[Iron E]

Originally Posted by sailorboy1

What would the faceless forums members do?

Can't speak for all of them/us, but, I'm sure most of them/us would:
1) Get the check
2) Fix the boat
3) Get back out on the water

[5BTM]

Take the check.
Collect interest for couple of years.
In two or three years, given the demoghraphics, sailboats will be practically free.

[keepondancin]

When I have been in a painful situation that I really want make it a distant memory, I take the path of least resistance. $80k, minus commission is $72. How much additional will the repairs costs be, and how long and how much involvement do you want to have with the project. It could take many months to complete the project and make to the sale happen. Selling it yourself, you will deal with what my Yacht Broker calls “Bottom feeders” that will play on your unfortunate experience. Tough decision.

[Lee Jerry]

I'm surprised that the insurance company didn't total it already. In the (US) car insurance world, the car is totaled if the repair estimate is >75% of the value of the car.

If you actually want to get out of sailing, definitely take the $60k and run. (Assuming they are taking ownership of the boat and will "dispose" of it. Otherwise that could be an additional cost and hassle for you.) You are very unlikely to ever see that potential $15k extra for the reasons mentioned and more - repair cost overruns, dockage and other operating costs until sold, brokerage fee (if applicable), etc.



PS - didn't post in the other thread, but I'll say now that I was sorry to hear about this incident.

[Knotical]

I would go with option 1

[DEAN2140]

"I am pretty sure my wife and I are out of boating after this so it comes down to how to handle getting out."
Since you are getting out, take the dough and avoid the headaches.

[boatman61]

Originally Posted by DEAN2140

"I am pretty sure my wife and I are out of boating after this so it comes down to how to handle getting out."
Since you are getting out, take the dough and avoid the headaches.

Good advice Don.. if disposal is not down to you.

[rbrazil]

Sorry for your loss.
Take the money and run.

[Jammer]

Unless I misunderstand the situation, the insurance company has to pay you for the loss whether you repair the boat or not and whether it's totaled or not.

My advice would be to take whatever money the insurance will pay, and then sell the boat as-is to the yard or to someone who wants a project boat, or to someone who wants a boat without a rig to motor around the Great Loop.


The last thing you want is to be paying for and managing a refit like that for a boat you aren't going to keep.

[h20man]

Originally Posted by sailorboy1

From an earlier thread; I had a collision with a fishing vessel that ripped all my mast/sails/rigging away. I have now gotten the estimate, which I feels misses things. I am pretty sure my wife and I are out of boating after this so it comes down to how to handle getting out.

My Agreed Value is $59,900 (under insured because of being in Florida). Right now the estimate is $56,250. I can see missing items on the estimate that would I feel once added will exceed my insurance value. So the choices I see are:

1 - Press to get the estimate increased to more than the Agreed Value, get a check check for $59,900 and walk away easy.

2 - Repair the boat and risk that it will be more than Agreed Value that I have to make up the difference of (if it costs less it means nothing bottom line to me). Then sell a repaired boat that will have new sails, mast, boom, standing and running rigging,new mast lights, radar, VHF antenna. Currently the lowest priced Hunter 410 list for sale is $85k. I don't want to draw out my pain of selling holding out for the highest price so was thinking $80k. Assuming the repair runs $5k over the Agreed Value I would away with $75k

So do 1 and get out easy and collect $60k, or do 2 and HOPE to sell easy and walk away with $75k. $15k is $15k, but I am not sure it is the real driver as there is a lot of emotion still in play.

What would the faceless forums members do?

With regards to your numbers.. have you calculated NET of brokers commission?


Selling without access to a broker.. may be difficult..


Also.. what about taking the $ and buying the boat back from insurance for a small amount... and then doing some work and reselling.... or reselling as a project..?

[sailorboy1]

I have a major relative who does this exact thing in an insurance company. Apparently the thing for totaling has nothing to do with the cost to repair being more than Agreed Value, it has to do with Market Value.