Fair Market Value

[JusDreaming]

We just had a insurance survey and the surveyor came in with a low fair market value price IMHO. He said he could only find one similar boat that had sold and based the price on that. So how important is this price designation? Should I even worry about it!!!!!!!!!!!

[GordMay]

It could be very important!
If you have “Fair Market Value” policy, this will be the maximum amount your insurance company will pay for a total loss.
Your “Cost of Replacement” is usually much higher than fair market value.

[Stumble]

I'm with Gord. For insurance purposes FMV is the max that a policy will pay. I always prefer replacement value policies since they will actually allow you to buy what you have in the event of a total loss.

If the surveyor can't find more than one boat of the type that has sold, then I would argue that replacing it will be difficult and expensive, since there are so few of them out there...

[colemj]

If the value is equal or greater to that which you want coverage, then no problem at all.

Mark