BoatBanter.com - View Single Post - Insuracne Cliam, not happy with settlement, What to do????

wrote:
John Gaquin wrote:
"ToneJohn" wrote in message

...... (BoatUS) told me that they would not pay for the entire cost of
repairs becuase some was due to wear and tear,

The easiest way to deal wth this is before it happens. I know that's no
help to you now, but my guess is that your current policy is written
stipulating replacement at ACV -- actual cash value. This is what gives the
carrier the right to depreciate the payout.

In future, make sure your policy is written such that three important
factors are addressed. The policy should stipulate, right from the start,
an *agreed value* for the vessel; should effect repairs/replacements at
*replacement cost*; and should cover *all risks*. This way, all the tough
questions are resolved before the damage occurs, so no one has the wiggle
room to try to tap-dance out of their responsibilities. This type of policy
will cost a bit more, but will avoid the kind of hassle you're having right
now. There are lots of boats sitting on the hard because their owners can't
afford their portion of required repairs -- all because they tried to save a
couple hundred on their insurance premium.

Good luck finding a policy these days that doesn't consider wear and
tear on machinery. The old days of putting 2000 hours on an engine,
over 20 years, and then geting a "freebie" from the insurance company
when the old mill goes toes up are long gone.

Even policies that are "agreed value" on hull, etc, commonly depreciate
engines, gearboxes, etc. Boat US being a specific example.

There is a difference between a risk that is insured against, such as
storm damage or striking a rock, and expecting to be reimbursed because
something with a specific useful life finally reached the end of it.

It isn't uncommon for an insurance company to pay for repairs to
engines, etc, when the loss is due to accidental damage, but in this
case it sounds like the springs (valve springs?) are worn out to the
point where the first one has broken and the others may not be far
behind.

The first thing you do is hire your own investegator, a surveyor, to
represent you. If he concludes that the problem was not wear and tear,
send your report from him in to the insurance company and indicate to
the person you are dealing with that you are not accepting the
settelment. By the way, in most states you can simply write on the back
of the check "In dispute", this indicates that in cashing the check you
do not agree that this is a final settelment. Also, make it very clear
to them that you are not going to fade away, ask to talk to their boss,
call them every day, talk to your state insurance department, then,
talk to a lawyer, if the amount is worth it. I chased an insurance
company for two years on a claim (a good one), they finally gave me
what I wanted, just to get rid of me and my lawyer (who was a friend
and didn't charge me).