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    Insurance nightmare.

    In May 2017 I came down to the boat to find that she was taking in lots of water and it was up to the bottom of the first step in the salon.
    To cut a long story short the IC assessor said that the belows clamp had failed on one drive and the vessel foundered as a result.
    At this stage I was left as an uninsured individual and the problem was all mine.
    At that time I could have walked away from it all and cut my losses.
    However I do like the boat and had injected lots of $$$ to bring her up to great condition. New drives, transom rebuild,, repaint, genset, interior and everything else one does when refurbishing their vessel.
    I decided to engage a specialist insurance assessor to investigate the original cause of the water intake. I couldn't just put it all back together and hope it wouldn't take water again. He was absolutely top notch and generated a report for submission back to the IC's claims departrment for re-assesment.
    His report showed calculations that the inflow from the slot in the transom shield (bellows) could not have been the original cause of the loss.
    In the interim I pulled the Genset which was totalled, both motors and transom shields. The wiring and ancillary pumps were all destroyed, including batteries etc.
    When we pulled the shields we found that the port shield had been impact damaged as a result of running aground at speed in January. The Sunday prior to the incident we touched lightly going out of our channel and I just lifted the leg and off we went.
    At this stage we found impact damage on the transom which had flexed and then failled again after being grounded on the Sunday causing the new shield seal to fail catastrophicaly.
    We submitted the compehensive report 50+ pages including photo's of the damaged area etc. The original assessor had submitted a 5 page quote and report and some photo's. All woefully incorrect
    So back we go to the Insurance companies dispute resolution process to again be told, No Claim.
    Again acting as an uninsured person I rebuilt the boat expensing far more than the boats wurth. Repaired Transom, motors, starter motors, alternators, legs, wiring,(A huge job) ancillary pumps and on goes the list. After the vessel initially took on the water and I drained evrything from the bilges I put in a de humidifier for weeks.
    I got the vessel seaworthy and put her back in the water and no leaks. The period of time up to this stage was about 3 months.
    Again after months of going back and forward between the claims department, our assessor and ourselves still no reolution.
    In mid July I made a submission to a regulatory body that handles financial complaints and then had to complete extensive document submissions and proof statements. A process that again took time. In the intrim I continued on with repairing the boat. and spending $$$$$$$
    The independent arbitrator set up communications and after many weeks he came back with a resolution whereby the IC had admitted liability and agreed to a payout.
    I could not accept the initial offer and again emphasised to the arbitrator the content of my assessors report.
    After a few weeks we received our payout from thre IC.
    The whole process had taken over 18 months but I now have the boat and reimbursement of about 80% of what I spent to bring her back.
    Would I do it all again? probably not, but when you have no option what does one do?
    So there was a happy ending to the calamity and we are back out there enjoying boating.

    #2
    It's a pity Australia does not have a "treble damages" rule... In WA state, if insurance company admits originally denied claim after a court decision, they pay 3 times more than the repair estimate.
    Alex
    1997 2859, 7.4 MPI, Bravo II
    1993 2452, 5.7 Bravo II - SOLD

    Comment


      #3
      Thanks for sharing your story.

      My biggest takeaway with stories like yours is this is why you should have a yacht policy, and understand it.

      I’m guessing that you have an auto type policy, since it would not pay for a failed bellows clamp (really a hose clamp)

      Under my Geico Yacht policy which is standard language I would have been paid right away.

      KEVIN SANDERS
      4788 LISAS WAY - SEWARD ALASKA

      Comment


        #4
        I think in the US if you have a yacht policy that damage caused my a faulty clamp would be covered, wouldn’t it?

        I/O’s scare me for boats kept in the water. Too many ways for them to sink.
        Esteban
        Panama City, Panama
        Former Bayliners 3218, 2859, 2252, 1952
        Currently looking for 32xx in South Florida

        Comment


          #5
          It depends on the language of the mechanical coverage. I need to talk to my agent about what they draw the line at mechanical coverage, or the lack thereof. Sudden damage, like striking something, is covered, but I'm not sure about a valve dropping into a cylinder. I'm thinking that's on me, but it is what it is. I want to know about the hose clamps on the exhaust and the intake hoses. Is all of the wiring considered mechanical? I'm sure each company has their own definition, not that it would confuse the person buying the policy.
          P/C Pete
          Edmonds Yacht Club (Commodore 1993)
          1988 3818 "GLAUBEN”
          Hino EH700 175 Onan MDKD Genset
          1980 Encounter Sunbridge "Misty Blue" (Sold)
          MMSI 367770440
          1972 Chevrolet Nova Frame off Resto-mod in the garage
          Boating on the Salish Sea since 1948

          Comment


            #6
            Originally posted by Pcpete View Post
            It depends on the language of the mechanical coverage. I need to talk to my agent about what they draw the line at mechanical coverage, or the lack thereof. Sudden damage, like striking something, is covered, but I'm not sure about a valve dropping into a cylinder. I'm thinking that's on me, but it is what it is. I want to know about the hose clamps on the exhaust and the intake hoses. Is all of the wiring considered mechanical? I'm sure each company has their own definition, not that it would confuse the person buying the policy.
            Thats why you need a all perils policy. A yacht policy.

            Lets take a valve dropping in a cylinder. Under my policy technicially the actual valve would not be covered as it would be considered to be a latent defect in the valve. Any subsequent damage would be covered, and in the case of a dropped valve they would pay to rebuild the engine.

            Hose clamp failure... If it corroded then theoretically no coverage, as corrosion is excluded. Except that my policy says sinking and partial sinking is covered no matter what the cause. So they end up buying a new boat, minus $1.98 for a hose clamp.

            KEVIN SANDERS
            4788 LISAS WAY - SEWARD ALASKA

            Comment


              #7
              Keven, agreed about the significant additional coverage with a yacht policy. I've had that type for over thirty years. However, some companies are limiting or excluding mechinery coverage. In my case, when we bought our 1988 3818 two years ago, the machinery was specifically excluded. Yes, it's essentially me paying the price for those who haven't maintained their machinery, just like the rate is based on losses from all perils and the risk that it would happen to me. I plan to look around for a different carrier at the Seattle Boat Show later this month, as I do every five years or so, to compare coverages.
              P/C Pete
              Edmonds Yacht Club (Commodore 1993)
              1988 3818 "GLAUBEN”
              Hino EH700 175 Onan MDKD Genset
              1980 Encounter Sunbridge "Misty Blue" (Sold)
              MMSI 367770440
              1972 Chevrolet Nova Frame off Resto-mod in the garage
              Boating on the Salish Sea since 1948

              Comment


                #8
                So who was the IC ????
                2000 Bayliner 3055 Ciera
                "Summerized"
                MMSI 503024850
                Volvo Penta D3-220's DPS DuoProps (2018)
                RQYS Manly QLD

                Comment


                  #9
                  I would prefer not to name them on a Forum
                  I don't think their marine book is very big.
                  They have been mentioned in the recent Royal Commission.

                  Comment


                    #10
                    ok - got it.... I'm not using them !....
                    2000 Bayliner 3055 Ciera
                    "Summerized"
                    MMSI 503024850
                    Volvo Penta D3-220's DPS DuoProps (2018)
                    RQYS Manly QLD

                    Comment


                      #11
                      Always pay for a yacht policy. They are a bit more expensive but are really worth it. On my previous 2855, a valve retainer spring popped off. The valve dropped onto the top of the piston and blue the engine. $13,000.00 later I was back in the water. My policy paid for everthing except the spring which was 25 cents.

                      Next year, no increase for the policy after making a claim.

                      Comment


                        #12
                        I’m amazed that any insurance policy would cover engine damage. That’s a fantastic policy. Care to mention who that’s thru? I might switch from BoatUS
                        Gibraltar, Mi.
                        1986- 3870- Hino 175's - Just purchased May ,2017
                        34' Tollycraft- sold
                        88 26' Shamrock/ Diesel
                        14' Zodiac Bay Runner

                        Comment


                          #13
                          All yacht policies cover this. The outfit that did my engine asked me if I had a yacht policy and I said did. He called my broker and they sent down a person to survey the damage. As long as it is not a lack of maintenance issue, you are covered for everything except the item that caused the damage. In my case, a valve retainer clip broke. I had to for out 25 cents to get my boat put back in the water. I'm not kidding!!

                          I'm in Vancouver Canada and use Pacific Marine Underwriters through my broker Johnson Meier. They have 2 ladies there that only deal with boat insurance and they are great.

                          The other thing with this type of policy is that you agree on replacement value. In a total loss, they will pay you out in full.

                          I have a 1986 Bayliner. The agreed value is $95,000.00. That's a fair bit more than I could get for the boat. More like $70,000.00 up here if I sold it myself.

                          My premium is $1,226.00 in Canadian dollars, so about 8 bucks American right now with a $475.00 deductible.

                          I know you US guys can get these types of policies because I'm usually on the Motoryacht pages and the US guys are always talking about these.

                          If you hit a log, you're covered. If you run aground, your covered. As long as it's not a lack of maintenance issue, you are covered.

                          I suggest you go to the Motoryacht page and ask what companies in the USA have yacht policies.

                          JV


                          Comment


                            #14
                            Sunbird, what I'm running into is machinery more than 10-15 years old is excluded except under certain circumstances. So, my transmissions aren't covered if they break unless it the result of striking an object. Given the age of our boats finding engine coverage is going to be difficult unless a rebuild can be documented and a survey provided. I'm going to shop around at the Seattle Boat Show later this month, so the conversations will be interesting.
                            P/C Pete
                            Edmonds Yacht Club (Commodore 1993)
                            1988 3818 "GLAUBEN”
                            Hino EH700 175 Onan MDKD Genset
                            1980 Encounter Sunbridge "Misty Blue" (Sold)
                            MMSI 367770440
                            1972 Chevrolet Nova Frame off Resto-mod in the garage
                            Boating on the Salish Sea since 1948

                            Comment

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