Boat insurance question

Gybson

Seaman Apprentice
Joined
Mar 25, 2012
Messages
38
Hi All!
Well, I'm finally launching my boat after hours of blood, sweat and tears. I got insurance and Boat US coverage, so I'm all set in case of any sort of unforseen circumstance.

I thought of something though... This is the first time this has been in the water since I purchased it. What if something incredibly stupid happens and it sinks, careens into something or worse? I'm confident in my mechanical ability and I have insurance, but isn't it going to look bad if something like that were to happen RIGHT AFTER insuring it? I insured it for $5000, but it was given to me by a friend who didn't want to fix it... Who's to say that people aren't just buying junker boats, launching them, sinking them and collecting insurance on them?
 

oldjeep

Admiral
Joined
May 17, 2010
Messages
6,455
Re: Boat insurance question

Anything is possible, but you could do the same thing with a car if you were so inclined and could only get away with it once - maybe.
 

spoilsofwar

Lieutenant Junior Grade
Joined
Jun 29, 2011
Messages
1,124
Re: Boat insurance question

Who's to say that people aren't just buying junker boats, launching them, sinking them and collecting insurance on them?

The insurance adjusters and investigators :)
 

Slide

Petty Officer 1st Class
Joined
Aug 2, 2010
Messages
269
Re: Boat insurance question

Sure, it will look bad, but "looking bad" isn't a valid reason to deny your claim. Maybe they would investigate it more closely than your run of the mill claim, but if it actually was an accident... well, that's why we pay for insurance!
 

BoatDrinksQ5

Petty Officer 1st Class
Joined
Feb 11, 2012
Messages
377
Re: Boat insurance question

In the end it is a boat.... or car

If say a life insurance policy.... then things would be a little different! haha
 

Gybson

Seaman Apprentice
Joined
Mar 25, 2012
Messages
38
Re: Boat insurance question

Anything is possible, but you could do the same thing with a car if you were so inclined and could only get away with it once - maybe.
Yeah, that's true. I just really don't have a way to PROVE it if it came down to brass tacks... Boat looks solid enough and runs amazingly now, thanks to me :D Deck is a little saggy, but I'll fix that over the winter. Transom and Stringers are pretty solid. Might redo them down the line, but they're far from rotted. I just want to be prepared for the worst.

The insurance adjusters and investigators :)
That's true... Assuming they have a heart!!! I just have a hard time thinking they'd give $5000 to me on a loss that I only spent about $1000 on in parts.
Sure, it will look bad, but "looking bad" isn't a valid reason to deny your claim. Maybe they would investigate it more closely than your run of the mill claim, but if it actually was an accident... well, that's why we pay for insurance!
Very true. I guess I'm just unfamiliar with the process.
 

spoilsofwar

Lieutenant Junior Grade
Joined
Jun 29, 2011
Messages
1,124
Re: Boat insurance question

That's true... Assuming they have a heart!!! I just have a hard time thinking they'd give $5000 to me on a loss that I only spent about $1000 on in parts.

Depends on the wording of your policy... If you have agreed value, set at $5000, and no exclusionary clauses or "lesser of two values" verbage in there, then $5k is what you get.

I'll assume you have a BoatUS yacht policy?
 

Gybson

Seaman Apprentice
Joined
Mar 25, 2012
Messages
38
Re: Boat insurance question

Depends on the wording of your policy... If you have agreed value, set at $5000, and no exclusionary clauses or "lesser of two values" verbage in there, then $5k is what you get.

I'll assume you have a BoatUS yacht policy?
I'll have to check the details, but I just told my agent "About $5000" would be the worth. The insurance policy is through State Farm; the BoatUS package is just towing.
 

jkust

Rear Admiral
Joined
Aug 2, 2008
Messages
4,942
Re: Boat insurance question

Hi All!
Who's to say that people aren't just buying junker boats, launching them, sinking them and collecting insurance on them?

Ethics, fear of jail time and living life as a felon for the grand total of $5,000 less your costs and time you spent rehabing it. I think you've been watching too much Burn Notice.
 

spoilsofwar

Lieutenant Junior Grade
Joined
Jun 29, 2011
Messages
1,124
Re: Boat insurance question

Okay, I would read your policy thoroughly to ensure you really have the coverage you think you do. Sometimes, people think they have agreed value coverage, but what they really have is "agreed value or market value, whichever is less", or other stipulations that end up netting you less money in a claim then you think you should.

I have BoatUS coverage and not State farm so I cant comment specifically.
 

Gybson

Seaman Apprentice
Joined
Mar 25, 2012
Messages
38
Re: Boat insurance question

Ethics, fear of jail time and living life as a felon for the grand total of $5,000 less your costs and time you spent rehabing it. I think you've been watching too much Burn Notice.

Never seen it, lol. Though I've been a customer of State Farm for 12 years now and I've never filed a claim, so that's got to count for something. :)
 

BRICH1260

Lieutenant
Joined
Jul 6, 2011
Messages
1,342
Re: Boat insurance question

State Farms policy is a stated value policy in case of a total loss.
 

jkust

Rear Admiral
Joined
Aug 2, 2008
Messages
4,942
Re: Boat insurance question

Never seen it, lol. Though I've been a customer of State Farm for 12 years now and I've never filed a claim, so that's got to count for something. :)

Yikes, all I can say is in 12 years, the P&C market has hardened and sofetened many times to different degrees. Could be due to overcapacity/too much capital in the market, possibly reinsurance costs associated with large catastrophes or a number of other variables. You may recall that one of the hardest hit Katrina insurance companies had no reinsurance which is unfathomable. As a consumer this means if you haven't shopped the competition, you have likely paid more than you needed to. I hope you have at least shopped your home, auto and umbrella policies. Probably 5 years back we had a hail storm come through and every house got their siding and roof replaced save for the State Farm policyholders. People with destroyed roofs were left holding the bag and you could drive around and easily pick out the State Farm policy holders. Because of that SF has an unrecoverable black mark in my eyes.
 

Ciscovet

Seaman
Joined
Sep 4, 2011
Messages
73
Re: Boat insurance question

This is exactly what happened with me. I bought my first boat last year around September. This year in May, I hit a submerged rock pile which completely ruined my out-drive. Geico had me send in some pictures and an estimate from the mechanic. The next day, they cut me a check for 5000 dollars to fix my out-drive no questions asked. Best experience I have ever had with an insurance company. Sometimes ****e happens that's just the way life is. If your an honest person, you have nothing to worry about.
 

Gybson

Seaman Apprentice
Joined
Mar 25, 2012
Messages
38
Re: Boat insurance question

Yikes, all I can say is in 12 years, the P&C market has hardened and sofetened many times to different degrees. Could be due to overcapacity/too much capital in the market, possibly reinsurance costs associated with large catastrophes or a number of other variables. You may recall that one of the hardest hit Katrina insurance companies had no reinsurance which is unfathomable. As a consumer this means if you haven't shopped the competition, you have likely paid more than you needed to. I hope you have at least shopped your home, auto and umbrella policies. Probably 5 years back we had a hail storm come through and every house got their siding and roof replaced save for the State Farm policyholders. People with destroyed roofs were left holding the bag and you could drive around and easily pick out the State Farm policy holders. Because of that SF has an unrecoverable black mark in my eyes.

Well, the *good* news is that I don't own a home so I don't have to worry about homeowner's insurance! :D I have renters' insurance, auto insurance and now boat insurance through them. I've not had any claims, but my parents have and they've always done right by them... *shrug* My premiums and deductibles are pretty darn low too. I browsed for new insurance...2-and-some-change years ago when I bought my most recent car and State Farm was the lowest by far. Checked Progressive, Farmers, eSurance and Allstate.
 

Gybson

Seaman Apprentice
Joined
Mar 25, 2012
Messages
38
Re: Boat insurance question

This is exactly what happened with me. I bought my first boat last year around September. This year in May, I hit a submerged rock pile which completely ruined my out-drive. Geico had me send in some pictures and an estimate from the mechanic. The next day, they cut me a check for 5000 dollars to fix my out-drive no questions asked. Best experience I have ever had with an insurance company. Sometimes ****e happens that's just the way life is. If your an honest person, you have nothing to worry about.

Nice; that's good to hear. :) I'm a pretty honest person. Telling lies just means you have to remember more and it just gets complicated. =\
 

jkust

Rear Admiral
Joined
Aug 2, 2008
Messages
4,942
Re: Boat insurance question

Well, the *good* news is that I don't own a home so I don't have to worry about homeowner's insurance! :D I have renters' insurance, auto insurance and now boat insurance through them. I've not had any claims, but my parents have and they've always done right by them... *shrug* My premiums and deductibles are pretty darn low too. I browsed for new insurance...2-and-some-change years ago when I bought my most recent car and State Farm was the lowest by far. Checked Progressive, Farmers, eSurance and Allstate.

Ok then some good news including that you are smart enough to have renters insurance. I've saved a lot of money over the years taking higher rather than lower deductibles particularly on the house. Funny how people are so quick to cry fowl over insurance companies claim payment practices. I've only had one really egregious experience with a claim which was an auto claim but all has been good other than that.
 

TilliamWe

Banned
Joined
Dec 21, 2004
Messages
6,579
Re: Boat insurance question

The insurance adjusters and investigators :)

Yep, that's what I did for 10 years. I didn't run across too many fraud cases like the scenario Gybson proposes. They are usually pretty obvious.

You do want to ABSOLUTELY confirm that you have an Agreed Value (for total loss at least) policy. If you don't, you have ACV, and you'll get maybe the $1000 you spent on the boat. Which is just like a car, when you think about it. You don't get the cost of a 2012 car for your totalled 2006, nor do you get the sticker price of the 2006. But for some reason, people think they should on boats, and you can buy a policy that gets you just that.
 
Top