One of the trend now in Canada is refurbishing of boats that have been write
off by the insurance companies after big storms in the US.
Entrepreneurs are going in the US and they buy write off sailboats. They
bring them into Canada to refurbished them. Then they are sold at the
market value. One of the classic scenario is "this guy has this sailboat in
is barn and has not use it for ages and he want to sale it now." Then the
synergy is in motion and offer, counter offer and offer goes on and the boat
is sold as is.
Some of these refurbished are doing a very good job and they well deserve
the price they are asking for. However, how does one know if the boat has
been write off in the US. Can the sailboat be traced to it original owner
and the insurance company. Conversely, why is the insurance company not
paying for refurbishing a damaged sailboat instead of paying a replacement
cost?

Denis Marier wrote:
One of the trend now in Canada is refurbishing of boats that have been write
off by the insurance companies after big storms in the US.
Entrepreneurs are going in the US and they buy write off sailboats. They
bring them into Canada to refurbished them. Then they are sold at the
market value. One of the classic scenario is "this guy has this sailboat in
is barn and has not use it for ages and he want to sale it now." Then the
synergy is in motion and offer, counter offer and offer goes on and the boat
is sold as is.
Some of these refurbished are doing a very good job and they well deserve
the price they are asking for. However, how does one know if the boat has
been write off in the US. Can the sailboat be traced to it original owner
and the insurance company.

Ask for the HIN (Hull Identification Number). The boat can be traced
from that. If that HIN is new, you know that the boat must have been
"totalled" by an insurance company, assuming that the system for boats
works the same as for automobile VINs.

Conversely, why is the insurance company not
paying for refurbishing a damaged sailboat instead of paying a replacement
cost?

You're mistakenly assuming that the only options are to repair or
replace. Unless you have a specific "replacement value" policy, they're
not obligated to replace the boat, only to pay the cost of repairs or
the depreciated market value of the boat. They will give whichever is
less, at their discretion. If they opt to pay you the market value, they
then own the boat and can sell it to help recoup some of their loss.
They may only get 10-20 cents on the dollar for it.

At that point, the boat is likely cheap enough that someone willing to
refurbish it for resale - or personal use - would find it attractive to
buy it. A boat that was $50K new might only cost $5-10K at an insurance
auction. A refurbisher might put $20K or so into it, then be able to
sell it or $35-40K. If the work is done properly it could actually be a
bargain. If it's not, it could be a deathtrap.