Insurance Help

[Tubberstein]

I recently was out for my last afternoon of boating for the season.
On my way back to the marina we hit something, not sure what it was (guessing a rock)
Long story short it tore off my lower drive and prop and did some damage to the upper as well.
I've never had to make an insurance claim but think I might have to now, due to the cost of a new or rebuilt drive.
My question is I have an agreed value policy on the boat however it doesn't clearly separate the value of the boat and then the motor and out drive. It has it as an overall "package" value and was wondering if anyone knows how they separate the two in the case of an accident like this (where the boat and motor are fine but the out drive is screwed)
Just wondering if anyone has had this problem or knows someone who has and put it through insurance?

I would just call my insurance company but I'd rather them not even know unless this is the course of action I choose.

Any help would be great!!

 

[TilliamWe]

Re: Insurance Help

Your agreed value only applies to the boat as a whole. They don't separate them at all. So unless the cost repair the outdrive will exceed that agreed value, then it's a repairable boat. There is one other part of your loss payment clause that you need to know, and you obviously don't. And that is, do you have depreciation on repairs? And what that means is are you going to have to pay for the portion of your outdrive's life that you had already used up?
If you have a Mercruiser Alpha One, then you can buy complete replacement outdrives, brand new, with a 3 year no fault warranty from Sterndrive Engineering for either $1195 (Gen 1) or $1395 (Gen 2). They are sold through iboats, too. They are listed at the top of almost every page that I click on. So if that's the drive you have, is it worth filing a claim and paying your deductible fore $1400?

 

[Tubberstein]

Re: Insurance Help

thanks for the quick response!!
I just bought the boat and insured it about three months ago so I hope that I'm not dealing with too much depreciation on repairs.
Thanks for the tip about Sterndrive Engineering unfortunately I have a Volvo SX drive and all of the pricing I have seen on these drives is absolutely ridiculous in comparison.
Thanks for the tip on repairs depreciation, I'll have to go over the policy to see.
To tell you the truth if they are willing to pay for the drive I'd be more than willing to pay for the install.

Thanks again for your help!

 

[FusionFrank]

Re: Insurance Help

I am an appraiser for a major insurance company and have settled numerous claims on lower units. I have never depreciated for a lower unit (even on a claimant's boat), in fact my company does not take depreciation or betterment on any first party claims (our insureds) for any losses except for a very few instances. You will only be responsible for your deductible (collision deductible).

My advice to you, take the boat to your dealer or marina where you want the repairs performed and advise the insurance company to inspect the boat there. The shop will get the money they need to repair your boat properly and you won't be caught in the middle. Most likely, you will get a new lower unit, a new prop and upper housing. The shop will also know if there is any transom damage that requires repair.

As stated above the "stated amount" only applies if the vehicle is a total loss - I am sure yours will be repairable.​

 

[TilliamWe]

Re: Insurance Help

Is you boat only 3 months old? Or did you buy a used boat three months ago? Big difference.

If's a 3 month old boat, yeah, you're gonna get brand new Volvo Penta components, no questions asked. If it's 10 year old boat, like mine, you're gonna get paid for remanufactured parts, most likely. Just remember, a reman drive with a warranty in place of a used drive that had no warranty is equal at least, and most likely an upgrade.

But yes, pick the repair facility and have them work with the adjuster involved.

 

[TilliamWe]

Re: Insurance Help

I am an appraiser for a major insurance company and have settled numerous claims on lower units. I have never depreciated for a lower unit (even on a claimant's boat)...​

Hey, Santa Clause, I didn't know North Pole was in PA, and that you worked for an insurance company! Nice to know!

 

[Tubberstein]

Re: Insurance Help

The boat is a 97 and I just bought it in July.
I'd be happy with a rebuilt unit (anything to get back out on the water), I just wasn't sure how much if any Insurance would cover on my "agreed value" policy for the damage. Like you said before if they aren't covering enough it probably isn't worth claiming it.

 

[TilliamWe]

Re: Insurance Help

Okay, thanks for the info. Your "agreed value" portion only comes into play if the cost to repair the boat will exceed that number. So if you have the agreed value at $10,000, and the drive repairs are $5000, it's not an issue. Now, if you set the agreed value on your boat low, say it's $4500, and the repairs will cost $5000, then they will declare the boat a total loss, and pay you the agreed $4500. Make sense?

 

[Tubberstein]

Re: Insurance Help

Yes totally makes sense now.
I guess I'll call and try to file the claim then. I'm guessing that it's going to be at the very least around $3500 (why did I have to go with a Volvo?)

Thanks again for your help.