Boat Insurance

[Nancy]

Charles,

As a 35-year member and insured of BoatUS with enormous respect for the organization and its claims reputation, I do not take lightly a decision to move our insurance business elsewhere. I am aware of the difference between partial loss and full loss as well as the distinction between hull and machinery. I have asked BoatUS about removing the depreciation clause, and have had no success. I would have been happy to have had the results you have.

[RobS]

...... and suggest further investigation on your part. Something called Due Diligence..

The reason this thread exists (and is 5 pages long) is that we are all pooling together our experiences and research as a best effort to make informed decisions moving forward. That sounds like investigation and due diligence to me.

I have asked BoatUS about removing the depreciation clause, and have had no success. I would have been happy to have had the results you have.

I called BoatUS again today, twice, two different reps, two different responses to my inquiry.

All I wanted to know was whether the Partial Loss Depreciation Waiver was available to me and, if so, could it be implemented mid-term or only on renewal.

First rep said the waiver is not available if your boat is over 20 years old. I respectfully asked how that made any sense since if your boat is younger than 20 years the Partial Loss Deprecation policy language does not apply. No sensible response was provided.

Called back 10 minutes later, connected to different rep. Same question asked. This rep said the waiver is available for a boat that is over 20 years old and that it would be able to be added to my policy at the time of renewal, not mid-term. Cost to add = $25.

Boat US/Geico need to get the reps up to speed... I was told this waiver form, GM053, was created back in November so more than ample time for the reps to be properly schooled on it.

I also asked for a copy of the form to be emailed to me so I could review it. I was told no, because they don't have any "sample copies". Was hard not to laugh out loud on that one but at that point I just didn't have enough left in the tank to continue...

[Nancy]

"Sample copies"!!!??! LOL!

Remember the days when we called BoatUS insurance, and the underwriters answered the phone? OK, maybe that's not quite accurate - maybe we were transferred to one within 15 seconds instead of fishing around with so-called customer-service representatives who know almost nothing about insurance.

OK, so given enough time, it might be possible to get the Geico policy written with the depreciation waiver. How are claims for partial losses paid if that waiver is in effect? At full replacement value?

[RobS]

With the waiver added to the policy, for repairs for partial loss they will not deduct depreciation for repair or replacement of fiberglass, plastic or wood hull material, masts and spars, metal supports and framing for attached towers, T-tops and hard tops, bow, stern or deck railing or glass.

[Nancy]

With the waiver added to the policy, for repairs for partial loss they will not deduct depreciation for repair or replacement of fiberglass, plastic or wood hull material, masts and spars, metal supports and framing for attached towers, T-tops and hard tops, bow, stern or deck railing or glass.

How does the waiver differ from the existing policy language in blue:

“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. In the event of damage to plywood, plastic, fiberglass, metal, cement, or other molded material, "we" are obligated to pay only the reasonable cost of repairing the damaged area, in accordance with quality marine repair practice."

Yes, the words are different, but what about the amount of the settlement check?

[RobS]

No doubt some conflicting terminology there. What you have in blue appears not to be subject to depreciation. However, when I reviewed it with the Boat US reps I was told that all partial repairs are subject to the depreciation language.

For example, a section bowrail is damaged and a welder needs $1,500 to straighten and reweld that section. That is normally not a depreciable item. When I reviewed this example with the rep they said that yes, without the waiver, even that $1,500 repair would be subject to depreciation, so at max depreciation it would result in a $300 pay out. With the waiver added to your policy you'd get the full $1,500.

[Nancy]

On that hypothetical bow rail repair, the Travelers policy wouldn't depreciate the rail if it was in good condition without corrosion or prior damage. But the policy does carry a deductible, which most of us long-time BoatUS customers don't have.

[Nancy]

For the hardy souls who have made it this far, here is the BoatUS/Geico Partial Waiver of Depreciation endorsement (GM053 02 17):
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PARTIAL WAIVER OF DEPRECIATION
FOR PROPERTY REPAIRED OR REPLACED
Under SECTION IV – COVERAGES, A. HULL AND EQUIPMENT, 4. Limit of Insurance, c. Amount Paid to “You” In Event of Loss, (2), Repairs for Partial Loss is removed in its entirety and replaced with

(2) 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. In the event of damage to plywood, plastic, fiberglass, metal, cement, or other molded material, “we” are obligated to pay only the reasonable cost of repairing the damaged area, in accordance with quality marine repair practice. If there is a covered loss requiring repainting of an “insured boat,” “we” will pay the cost of repainting or resurfacing the damaged area in accordance with customary marine repair practices so that the area repaired will match, as closely as practical, the original color. “We” have the option to make or reimburse “you” for repairs or replacements, or to pay “you” directly based on an agreed estimate of loss. Repairs and replacements will be made with like kind and quality.

“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

In the event of damage to a “dinghy” with cost of repair exceeding the “actual cash value” of the “dinghy,” the most “we” will pay is the “actual cash value” as determined by industry reference materials including, but not limited to, the N.A.D.A. book, the BUC Used Price Guide, and ABOS Marine Blue Book.
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I had to press the representative to get this far. Additional premium: $25 - same as others have reported. This endorsement still leaves a lot subject to fixed depreciation amount.

[DesertAlbin736]

Interesting. I have a BoatUS/GEICO policy, just renewed. This is starting my 3rd year with GEICO for this boat. My stated "Hull & Equipment" coverage limit is "Agreed Value" of $20,000. This is for a 47 year old boat of which 2,000 or less were built, in Sweden no less, between 1969 and roughly 1980. Since I haven't made any claims my deductible amounts decreased by 25% this year. Hull & Equipment deductible is now $125 and $50 for boat trailer. "Named Storm" loss/damage deductible is $1,000 or 5% of "Insured Value", which in my case would be $1,000. "Named Storm" coverage is for southeast coastal Atlantic & Gulf Coast states, so that hardly applies to me anyway.

Annual premium went down by 9.3% and is now $205. Includes $300K liability per accident, $300K uninsured boater per accident, $250 commercial towing/assistance. I also maintain Unlimited Gold level Water Towing and Trailer Assist with my BoatUS membership.

My cruising area coverage limits are "Coastal and Inland waters of U.S. and Canada". If I decided to go down to Mexico I'd have to get special Mexican insurance coverage, but no plans to do that any time in the foreseeable future.