All eyes are on the lookout for the value of the Cutty Sark claim and the parties involved. Anita Anandarajah reports

The embers have cooled aboard the Cutty Sark but the flames are still licking in the insurance world. What was the 138-year-old clipper valued at? How does one place a value on a one-of-a-kind historical ship?

While Royal & Sun Alliance (R&SA) would not be drawn into stating the value of the policy or the size of the claim, the spokesman said that the insurer "did not expect to suffer a material financial setback".

R&SA was awarded the contract to underwrite physical damage cover for the Cutty Sark renovation project in January, and are the principal insurers of the hull. The deal was brokered by Hayes Parsons Marine and Willis. Burgoynes have been appointed as the fire investigators.

While it is still early days for loss adjustors to hazard an estimate, word has gone round that the claim could sit in the region of £25m, which reflects the amount of funds the Cutty Sark Trust was trying to raise to bring the ship back to its glory. Until the fire, it was still £5m short of its target.

One insurer said that R&SA is putting on a brave face, but added that it could have been a lot worse if all the items – like the highly combustible mast and rigging – were on board. As such there is a reduced loss.

The clipper was 100% insured but losses are said to be less serious as 50% of the parts, including the mast and spars are being stored at the Historic Dockyard in Chatham.

Parties involved – R&SA, brokers and loss adjusters – will meet on-site tomorrow to quantify the value of the claim.