"ToneJohn" wrote in
:
I have BOATUS insurance and recently was invovled in an accident the
my insurance company (BoatUS) told me that they would not pay for the
entire cost of repairs becuase some was due to wear and tear,
eventhough i would not have had it repaired if it wasn't for the
accident. Basically a spring broke and in order to repair it they had
to replace the others becuase it was unsafe to repair just one. They
sent out a marine surveyor and after that I recieved a check for 1/4
of the repair amount.. Basically my question is has anyone had the
similar situation? Or, is there a way to complain and/or talk with
someone higher about the claim / settlement??? If so, how should i
approach the situation??? any help is apprecaited... this is my first
accident and encounter with the insurance company.
Thanks!!
I am going to offer you something very unusual on this newsgroup: advice
addressing your specific question based on actual relevant experience.
I too have a BOATUS policy. I too had an accident. I too had the
experience of being offered the depreciated amount. Well, here's your bad
news. If you read your policy, there's a 99.9% chance you will find a
clause that allows BOATUS to pay the depreciated value of mechanical, if
not all, parts on your boat. They know it's there and that's why they
offered you the depreciated value. You signed up for it, and you should
live with it.
But now, a little hope for you: I fought them, and I won. Maybe cause I
was right, or maybe cause I wore them down. First, do or confirm
everything in writing. Just the fact that you do that let's them know
you're no rube and that a record is being created which they can't deny
later. Second, and most important, you need a ground to challenge their
offer. I my case, and I believe what may be your only chance, I
challenged their assesment of depreciation. My policy, and probably yours
(read it, every word) allowed depreciation, but never defined it. The
dictionary defines it as a decline in value due to wear and tear. Look it
up. The key here is wear and tear, NOT age. In my case, BOATUS kept
insisting that a bent prop shaft on my boat had a useful life of I think
10 years (I can't really remember right now, but it doesn't matter, the
principle is still the same)and that since it was half that old, they
ought to pay half the value. There was nothing in the policy that said
that this was the correct method of depreication. It was "just our rules
sir." Well I don't give a damn about their rules, and neither should you.
The only thing that counts is your insurance contract. My argument, which
I believe to be legally correct, is that they had to base any
depreciation on ACTUAL wear and tear, not just an estimate based on age
and their arbitrary assesment of useful life, and that in my case,
because of the meticulous care I had shown the boat, including no salt
water ever, there was virtually no wear and tear on the prop shaft and
that it would certainly last more than another 5 years, probably
indefinately. Remember, its the depreciation on the actual part in
question, not the assembly of which its a part. So in my case, sure, the
outdrive may blow out someday, but it's unlikey that the propshaft will
wear out if properly cared for. I kept writing letters, and eventually
they settled for a small deduction.
Now in your case, they have sent a surveyor. Did the surveyor determine
the actual wear and tear and remaining useful life on the part they want
to depreciate, or did he estimate by age alone? If so, there are your
grounds to fight them. If the surveyor did determine the actual wear and
tear, you could still fight by challenging his findings. Of course you
would fare much better if you get an independent surveyor or mechanic to
back you up. If you are right, do not give up. It may take five or six
letters and many phone calls. Also, it doesn't hurt to mention the
Insurance Commissioner in your state. Good luck.