Insured value +or- vat

[Gray git]

When valuing a piece of equipment for insurance should I be quoting it as inclusive or exclusive of vat (I am vat registered)

Just got a quote for new tractor insurance and it gave the value of the machine to be payed out as excluding vat is this correct?

 

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[Steve Bullman]

I was assume so!

[skyhuck]

When you make a claim your insurer will ask if you are VAT registered, if you are they will expect you to claim it back, so won't pay it.

[Gray git]

Thanks skyhuck, always worth checking as the figures get higher!

 

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[Treefitter]

Now this is a can of worms!

We pay insurance for the full replacement value ( less we are underinsured)

The item disappears we make a claim less excess. But when loss adjuster appears and states he can get new assets from...... cheaper they expect you to buy from their suppliers.

My gripe is if it's full value insurance then it's full value replacement.

I've had this happen with chainsaws as they wanted to use a firm 200 miles from me! My counter is when any warranty is required I will expect the loss adjuster to collect and deliver from their chosen supplier. They changed their mind! We are the client never forget!

[Kev Stephenson]

A £20k + VAT tractor costs you £20k so should be insured for £20k. Ensure the insurers are aware that is the ex VAT price so they don't try to pay £16.6k if a claim is needed.

 

Insuring it for £24k only puts your premium up and like has been said they will only give you £20k on a pay out.

 

If they gave you £24k would you give them the £4k back when you reclaimed the VAT?

 

Kevin

[Kev Stephenson]

Now this is a can of worms!

We pay insurance for the full replacement value ( less we are underinsured)

The item disappears we make a claim less excess. But when loss adjuster appears and states he can get new assets from...... cheaper they expect you to buy from their suppliers.

My gripe is if it's full value insurance then it's full value replacement.

I've had this happen with chainsaws as they wanted to use a firm 200 miles from me! My counter is when any warranty is required I will expect the loss adjuster to collect and deliver from their chosen supplier. They changed their mind! We are the client never forget!

 

I go through one of the online suppliers pages at insurance time and list actual cost not RRP. I also state on my asset register that these prices are correct at the date shown. Insuring everything at RRP would mean I am insuring probably £5k more than the replacement cost on hand tools, they won't ever pay out RRP so it's an increased premium for no gain. Note this is a new for old policy.

[Forest2Furniture]

Now this is a can of worms!

We pay insurance for the full replacement value ( less we are underinsured)

The item disappears we make a claim less excess. But when loss adjuster appears and states he can get new assets from...... cheaper they expect you to buy from their suppliers.

My gripe is if it's full value insurance then it's full value replacement.

I've had this happen with chainsaws as they wanted to use a firm 200 miles from me! My counter is when any warranty is required I will expect the loss adjuster to collect and deliver from their chosen supplier. They changed their mind! We are the client never forget!

 

Think you need to change insurance company.

My insurance is new for old next day replacement.

Mine payed out full RRP even when they knew I'd get the stuff at a discounted price.

All they wanted to know was if I was VAT registered or not.