HELP! Insurance Problem

[300sflyer]

Last week while vacationing on Lake Vernon in Huntsville Ont, we had an unfortunate accident with our 20' Mariah. With 4 people in the boat, and a water skier in tow at about 20 MPH, we hit something in the water below the surface. We heard and felt a big thud under the boat. The engine kept running, so we went slowly back to the dock.

I pulled the boat out of the water with the trailer, and found a bent prop shaft, scraped paint on the lower unit, and a broken gimbal ring. Our boating was obviously done just two days into our vacation.

I took it to a local Marina, and the repair estimate was just over 4K with tax. The engine has to come out to change the gimbal ring, and the drive has to be torn apart to replace the bent prop shaft.

Because of the value, my insurance company [will not say which one at this point] wanted to send an adjuster to look at the damage before they agreed to repair it. Next thing I hear is the adjuster does not believe that the damage was caused by any kind of impact, and they are disputing the claim!! I asked him what did cause the damage then and he had no answer...

I asked to have the claim escalated to a supervisor, and he is supposed to contact me tomorrow.

Any advise as to what to say or do to get them to pay up? I don't have an extra $4K just lying around to fix it!

Thanks,

 

[gozierdt]

Re: HELP! Insurance Problem

There is a thread running over in the outdrives section discussing outdrive replacement. SEI sells brand new, 3 year guarantee, upper and lower units for $1400 to $1600, depending on gear ratio. A quick search on eBay showed gimbals in the $300-$400 range. So you could fix it yourself for $2000 plus/minus. You definately need to escalate the issue with the insurance company, but if they give you a ration of c**p, or won't pay $4000, you might be able to work a deal knowing what you could do it for yourself for. I'd also get some other estimates. Pulling the old drive and gimbal shouldn't take a good mechanic 2-3 hours, and installing a replacement gimbal and the SEI outdrive is another 2-3, I'd think (if one of the real mechanics thinks this is way off, let me know. I'm fairly new to outdrives, but I've been reading a lot on them to learn).
So at $100/hr you'd be at $2600 or so, say $3000 outside.

I'd feel a lot safer with the completely new outdrive than with one that took the hit yours did...

 

[KermieB]

Re: HELP! Insurance Problem

I work on my own boat... and no I don't do this for a living, but yes, I think you are way off goz and beside that, not everybody is capable of doing mechanical work.

I bought my boat from a guy who's mechanic told him it would take $4k to fix the engine, and it took me 4 hours and $0 to get it on the water.

 

[Pez Vela]

Re: HELP! Insurance Problem

Take photos of the external damage to support your statement that you hit an object in the water.

 

[TilliamWe]

Re: HELP! Insurance Problem

The physical damage will speak for itself. Gimbal rings usually only break for two reasons. One is hitting submerged objects, the other is from coming back down into the water hard after jumping a wave. Usually there is a mark on the front of the drive when they strike something, but not always.
I can't think of any other way for a propshaft to bend, other than striking something. Granted, the prop is usually a little bent up, too, but not always.
In a case like this, the shop can be your greatest advocate. If they are a good shop, and know what they are doing/talking about, they can usually explain how it's an impact.
I will say this, the damage appraiser does have to "prove" the loss is not covered. he can't just say "I don't think it's an impact." He'll have to conduct a failure analysis that shows it failed for some other reason than impact, and the reason has to then be "excluded" on your policy. Hope that helps.
BTW the gimbal replacement is the major cost in this job, but you can/could save a pretty penny with an SEI drive.

 

[300sflyer]

Re: HELP! Insurance Problem

Thanks for the info and the advice. Hopefully I will know what the insurance company will do for me later today. I will update once I know.

 

[sea wolf]

Re: HELP! Insurance Problem

Done, done, done.

 

[Brewman61]

Re: HELP! Insurance Problem

Don't act childish or unprofessional with the insurance company.
Give them a chance to get the claim processed.
Keep to the high road and be a businesslike adult (don't threaten fake injuries, it won't help a bit). However, it isn't at all unreasonable for any passengers in the boat to seek medical assistanc if they have a legitimate concern.
If your claim is approved, and you're satisfied, then you'll be good to go.
If for some reason your claim is denied, you have recourse.
First would be to appeal the claim.
Second would be to file a complaint against the company with your state's department of insurance, if you truly feel you've been wronged.
Insurance companies take those complaints very seriously.

Hopefully this will be settled in a way that is satisfactory to you, just maintain a professional attitude and treat this like it is- a business transaction.

Good luck to you.

 

[lakegeorge]

Re: HELP! Insurance Problem

If they refuse then just hire a Lawyer and let him fight it for you. This should be covered and after it's fixed find a new Ins. Co.

 

[bruceb58]

Re: HELP! Insurance Problem

I think I would go with Brewman's advice vs Sea Wolf's advice...jeez!

Not sure what its like in Canada but in California you file a complaint with the derpatment of insurance.

 

[chaparral442]

Re: HELP! Insurance Problem

Who is your insurance company? Had a similar thing happen to me- adjuster wanted to do repairs- my boat dealer sunk his feet in the concrete for me and insisted on new assembly- I worked with the insurance company and the finally got ride of the adjuster- and dealt directly with the dealer-

 

[300sflyer]

Re: HELP! Insurance Problem

I spoke with the insurance company supervisor, and they are denying the claim.

I am so pissed right now, I dare not type anything further... Except to say it looks like it is time to talk with a lawyer...

 

[Hank496]

Re: HELP! Insurance Problem

Mike,

You didn't mention the brand of outdrive. I'm assuming Merc as I have seen Mariahs with them in the past.

Replacement of the gimbal ring may not require the engine to be removed. Merc has an approved fix for both the Alpha and Bravo that involves drilling access holes the side of the outer transom ring to gain access to the top gimbal pin nut. If the ring is not recessed into the hull transom, this cuts the labor to less than a day. On the Bravo (as I am painfully aware) the ring and pin alone is US$ 1500, just for the parts. When you throw in bellows and anything else that needs/should be repaired it is a $ 2500 - $ 3000 job (Again sadly, been there, done that).

I don't have any feel for a bent prop shaft, as I don't know whether you have a single shaft Alpha, or counter-rotating Bravo, but guess it won't be cheap.

Stay cool on this. I don't know the rules in Canada, but you should have some recourse through whatever agency regulates insurance. Speaking from US experience, you should read your policy. I should think there is some procedure that is laid out for claim disputes; be it an independent third party appraiser/adjuster, or consumer advocacy group.

 

[300sflyer]

Re: HELP! Insurance Problem

It's a Merc Alpha gen 2 drive. I am aware of the quick fix, however I pride myself in taking good care of my boats, and I do not want a hole drilled in the gimbal housing with a plug inserted to plug it up after someone pounds the nut off with a hammer and chisel. One way or the other, the engine will come out to put it back in the same condition as before.

I am going to look at all other options before heading to court, but in all honesty I do not have a good feeling about this...

 

[Pez Vela]

Re: HELP! Insurance Problem

What was the reason given for denying your claim?

 

[tommays]

Re: HELP! Insurance Problem

I will be interested in the outcome because at least with BOAT-US insurance there is big deprecation hit at 15 years regardless of the boats condition

 

[300sflyer]

Re: HELP! Insurance Problem

What was the reason given for denying your claim?

They do not believe the damage was caused by an under water impact. When I asked them what did cause the damage, they did not have an answer.

 

[bruceb58]

Re: HELP! Insurance Problem

Will the boat dealer be willing to put into writing what he feels caused the damage?

Not sure what the equivalent version of small claims court is in Canada but I doubt you would need a lawyer to resolve this.

I would still do what myself and another poster said to do which is to file a claim with the government agency that oversees the insrance industry up there.

 

[300sflyer]

Re: HELP! Insurance Problem

Will the boat dealer be willing to put into writing what he feels caused the damage?

Not sure what the equivalent version of small claims court is in Canada but I doubt you would need a lawyer to resolve this.

I would still do what myself and another poster said to do which is to file a claim with the government agency that oversees the insrance industry up there.

No... They will only say verbally that they believe an underwater impact did not cause the damage.

Yes, small claims is an option, and is good up to $25000.00. Costs a couple hundred to do that.

I am going to investigate what my options are with respect to government insurance industry standards next week.

 

[bruceb58]

Re: HELP! Insurance Problem

Would they be willing to go into court with you?