I'll share what I found out, but for now, here is what I read on MTOA (great group if you haven't joined!). If you have a 20+ year old boat, be sure to look at your partial loss clause. I didn't even notice it the first time I looked at the new language in the policy until I read about it on MTOA.Sprig1 wrote: ↑Sun Aug 06, 2017 8:00 am Hi Mary Jo I be interested in what you find about the insurance. Basically we have the same boat. Boatus was around $275.00 but would only insure for $9500.00. I think it was book vale. they would up it to $15,000 with a survey. I'm up to the point of getting my boat in the water. Thanks for the help. Hope to see you on the water sometime. Chris
"Geico has been making substantial changes to their yacht policy this year. Complete information will be in the September issue of Turtle Times, but if your policy with Gieco is new or renewed since May, you need to take action and I didn't want you to wait for the magazine.
On the plus side, Geico has introduced a disappearing deductible. Your basic deductible will be reduced 25% per year, if you have no claims, so it disappears entirely in year 5. Also, Geico has reduced the Named Storm deductible from 10% to 5% at no increase in premium.
Geico now has a standard navigation limit for all boats which includes U.S. and Canada inland and coastal waters. Any extended navigation beyond those limits must be endorsed onto the policy. Coverage for the Bahamas, Turks & Caicos can be added for $75.
Unfortunately, Geico has also introduced depreciation on partial losses for boats over 20 years old. The amount of depreciation to be taken off is 10% per year for each year over 20, subject to a maximum deduction of 80%. In the basic policy (i.e., without endorsement), this applies not just to specified items, but to the entire boat!
What follows is the important wording of the original depreciation clause which Geico started using in May, 2017.
“Repairs for Partial Loss: “We” will pay the reasonable cost of repairs or replacements, in accordance with quality marine repair practice, less depreciation. Depreciation shall be calculated at 10% for each year beginning with the 20th year from manufacture. In all cases, there shall remain no less than 20% residual value regardless of age.”
We objected to the change, and at our insistence, Geico agreed to offer an endorsement to the policy: “We will not deduct depreciation for repair or replacement of the following: a. fiberglass, plastic or wood hull materials; b. masts and spars; c. metal supports and framing for attached towers, T-tops and hard tops; d. bow, stern or deck railing; and e. glass.”
You may notice the endorsement doesn’t waive depreciation on marine electronics… but the depreciation applies to the age of the damaged equipment, not the date your boat was made. We don’t have any electronics over 20 years old aboard, do we?
Geico has also deleted the coverage for liability assumed under slip rental agreements. This coverage may be added back by endorsement.
If you’re insured with Geico and your policy renews after May of this year, contact Jon Horton at Jack Martin & Associates to make sure you get the Partial Waiver of Depreciation Endorsement and the Assumed Liability endorsement as soon as possible.
