Total Loss Options

[ksanders]

Either way, it does seem important to not end up with a tainted title. Perhaps the key is to negotiate a settlement with the insurance company that doesn’t involve them ever taking title to the boat. I think I’d also ask explicitly whether they in anyway flag the boat as having been declared a constructive loss, and ideally write a prohibition on that into the settlement.

I agree... If you want to sell the boat someday you need to show a chain of ownership that does not include insurance companies or salvage.

 

[SteveK]

I'm assuming this was for a boat that only got water in the bilge? Can't imagine doing every electrical outlet and every recessed light fixture in the ceiling.

Ted

You know what they say about assume

 

[dannc]

I completely agree. I see people make statements about insurers dodging claims and I wonder if they are discount carriers or otherwise second-rate insurance companies...

I had car insurance with Nationwide decades ago. They were not on my side but they went up my back side when my car was stolen. They lied at every level to minimize paying the claim. The claims adjuster lied. The manager lied. When I used Nationwide's complaint line the agent said that hurt my case. Really? I called up the complaint line, discussed how my case was being handled, and that HURT me? REALLY?

This was not just a local issue either. A man went into the Jacksonville office and killed a bunch of people due to how he was being treated with a claim.

Unfortunately, I have had other claims since then, and fortunately, the other insurance companies treated me fairly and with respect. Can't remember who I had with one claim, but they, and NC Farm Bureau, were awesome. In the other claims, I had no complaints about how I was treated or the payout. They were more than fair and responsive. Nothing but praise.

Nationwide?

Nationwide might have changed. I don't know. I will never, ever, do business with them again. My experience with them told me the company was rotten from top to bottom.

I didn't think Nationwide was a second rate company, their premiums certainly were not, and even if they had paid out correctly, they still would have made money on the premiums I had paid them for years. So yeah, some insurance companies treat people poorly.

Later,
Dan

 

[Larry M]

I had a marine claim for $60k plus that started at $22k. A lot of paper work. I was responsible for paying the boat yard but not one invoice or estimate, I submitted to the insurance company over a 4 month period was denied. They did send out their surveyor periodically. That was with BoatUS.

I also had a claim with Seaworthy for an outboard motor. A couple of emails with the original invoice and I had a check within 30 days.

 

[Shrew]

Why in the world would you start ordering parts before you had an insurance adjusters approval?

You would need to asses the full extent of the damage, then get an estimate, then find out of the boat was going to be declared a total loss (Yes, a severe grounding is expensive and a $40K agreed upon value is not a lot).

Cancel the parts, collect the check and move on to the next boat.

 

[Brooksie]

I respectfully disagree on your premise regarding insurance (see above in red).

The insurance contract will settle the total loss claim per the contract as I noted above (Agreed Value vs Actual Cash Value). It's really that simple.

No insuring company looks for ways to not pay a claim- that is business suicide. The insurer will look to confirm that the claim meets the policy language- and this is key. If you opt for a lower priced policy, understand you are also opting for (potentially) much less coverage overall. Conversely, a higher priced policy from a reputable company will have less exclusions and therefore more coverage.

People are conditioned to opt for the lowest price as a prime consideration of value, where the prime consideration should be coverage first, then price.

So- it is is truly a case of caveat emptor.

Insurance industry well represented here...