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    Question for the Insurance Guru-gctid397814

    Pete-

    I currently insure through United Marine Underwriter's. Since Zurich stopped writing policy's, I've had a different company every year.

    United's current offering is with American Modern Insurance Group. After a web search , it seemed like they had nothing but complaints when it came to claims service.

    I realize that it's a large company and the complaints encompassed all types of insured, homeowners etc. , but it seemed like absolutely no one was even close to being satified with them.

    When I questioned this with my agent thru an email and requested other options, this was her response:

    American Modern Insurance Group has a very good policy which includes Consequential Damage.

    Consequential Damage Protection covers damage to your boat resulting from burning, sinking or collision, even if the cause of the damage is excluded from insurance coverage.

    If a deteriorated stern-drive boot causes your boat to sink and you're insured by most insurance companies (which exclude losses caused directly or indirectly by wear and tear or gradual deterioration - i.e. this stern-drive boot), the damage caused by the deterioration isn't covered in your policy. You'll have to pay out-of-pocket, not only to re-float your boat, but also for all resulting damage caused from the sinking.

    But with Consequential Damage coverage, included in our Boater's Assistance Policy, the re-floating and any damage resulting from the sinking is covered.

    I will email an alternate quotation to you through ACE American, quote #233490. The ACE policy does not include Consequential Damage Protection and the Agreed Amount for hull coverage would be reduced to $50,000.
    My issue was not the price, which seemed reasonble ($736 ) but with the company's handling of claims. The best financial stabilty ratings or lowest premium possible means nothing if they don't pay fairly on a claim.

    my question to you is, on her statement concerning the " consequential damage coverage". Is it accurate and is it correct that most companies would not cover that type of claim ?

    Thanks for your help

    #2
    Try "charter lakes insurance" mostly insured through "ST Paul Fire" no hassel on claims for the 17 years I have known, pleasure and charter.

    Read the policy, you can add many different riders with most policy's.
    Pat says: DO-IT-RIGHT THE FIRST TIME!

    Bayliner 3870 "ALASKA33)
    Twin 350 GM power
    Located in Seward, AK
    Retired marine surveyor

    Comment


      #3
      s Keller wrote:
      Paul-

      I currently insure through United Marine Underwriter's. Since Zurich stopped writing policy's, I've had a different company every year.

      United's current offering is with American Modern Insurance Group. After a web search , it seemed like they had nothing but complaints when it came to claims service.

      I realize that it's a large company and the complaints encompassed all types of insured, homeowners etc. , but it seemed like absolutely no one was even close to being satified with them.

      When I questioned this with my agent thru an email and requested other options, this was her response:

      My issue was not the price, which seemed reasonble ($736 ) but with the company's handling of claims. The best financial stabilty ratings or lowest premium possible means nothing if they don't pay fairly on a claim.

      my question to you is, on her statement concerning the " consequential damage coverage". Is it accurate and is it correct that most companies would not cover that type of claim ?

      Thanks for your help
      Just saw this, Steve- sorry for not getting back to you earlier (was out on the boat playing!)

      In a few words- her explanation is flawed. Just about all yacht policies cover consequential loss/damage claims.

      Seattle Yacht Club had a famous one a few years back- a muskrat chewed thru an exhaust hose, which allowed water to enter the vessel and sink the boat. The "cause of loss" (water intrusion) was consequential to the "proximate cause of loss" and ACE did pay the claim.

      Comment


        #4
        Thanks Pete,

        Her example of damage caused by wear & tear or lack of maintence concerned me. If my boot needed to merely be replaced i would not expect the repair to be covered , however if it sank because of the boot not being replaced Iwould think that claim would be. Maybe not the boot itself but the ensuing damage.

        Thanks

        Comment


          #5
          Still on the boat playing (heading to Oak Harbor as I type); just re-read your post. I find it interesting that your agent points out that Consequential Loss/damage is limited to specifically named perils, rather than the broader language of a yacht policy (written on an all risk basis). Translation- if your carrier can show that the consequential loss falls outside the specifically named perils (fire, flooding, etc), the carrier can deny the claim.

          More later when I reach land...and a proper keyboard

          Comment


            #6
            My issue was not the price, which seemed reasonble ($736 ) but with the company's handling of claims.
            Whoa, that's expensive. I'm at $270 for mine with $35k agreed value, $500/250 liability, and $1m environmental coverage. Got a couple of discounts for USPS membership and classes, but even without those...well you should shop.

            Comment


              #7
              SwampNut wrote:
              Whoa, that's expensive. I'm at $270 for mine with $35k agreed value, $500/250 liability, and $1m environmental coverage. Got a couple of discounts for USPS membership and classes, but even without those...well you should shop.
              I'm thinking there's likely a big difference in rates between essentially lake boats and ones that live in the ocean. I don't know, but it does make sense - my slip rises and falls 14' twice a day, and holey smokes - talk about boating hazards. Shipping lanes, huge currents, barges - our rates should be higher. I'm not taking anything away from anybody's skills anywhere, but I pay rates in line with the OP (not quite the same language), and I believe others do too.

              I'm sure we'll hear more...

              Comment


                #8
                In re-reading I see that you might well not be moored on the coast at all. So, shop around

                John

                Comment


                  #9
                  As a general rule, premiums are based on a whole host of variables, including:
                  • Type of vessel
                  • navigation area
                  • owner experience (or lack thereof)
                  • policy wording (how the contract specifies coverages)


                  The worst thing one can do is to compare their policy to another based solely on premium- the lowest price is not always the best deal, nor does the most expensive premium automatically mean you have the best coverage.

                  Comment


                    #10
                    Yes, coverage details are critical, I agree. I've had my Boat US policy reviewed by two other agents and they were pretty happy (one has my umbrella policy), so I think it was a good comparison.

                    Comment


                      #11
                      The agent who handles my home, auto and umbella policies reviewed my BoatUS policy and then took out coverage for his own boat. I'd have to say that gave the BoatUS coverage points with me and a neighbor. Might be worth looking into their coverage.

                      Comment


                        #12
                        I had/have BoatUS and my regular insurance really wanted the boat too (seems to be low risk). I told them: match this policy at the same price and you got it. He came back a week later and said such a policy would be twice as expensive with them.

                        The same happened with our last boat 8 years ago. Different insurance company and same result. Looks like BoatUS has pretty good policies.

                        Comment


                          #13
                          We have had American Modern since we bought our 305 new in 2004.

                          The hook for staying with them is that they insured the boat with no depreciation since new for the first 10 years of ownership if you maintain coverage with American Modern.

                          We had one claim in 2004 and they took good care of us.
                          Jim McNeely
                          New Hope a 2004 Bayliner 305 Sunbridge Express Cruiser
                          Twin 5.7s with Bravo2 drives
                          Brighton, Michigan USA
                          MMSI # 367393410

                          Comment


                            #14
                            SwampNut wrote:
                            Whoa, that's expensive. I'm at $270 for mine with $35k agreed value, $500/250 liability, and $1m environmental coverage. Got a couple of discounts for USPS membership and classes, but even without those...well you should shop.
                            I have shopped around and that's ($736.) one of the lowest premiums. Boatus was higher @ $945. for the same coverage.

                            My coverage is 60K agreed value with everything else pretty much the same.

                            Also I am on the Atlantic coast So I also have all the fun stuff that Knot Finished had mentioned as well as hurricane threats.

                            Pete-

                            I couldn't agree more with your comments regarding the cheapest or highest being the best and that is why my concern was more for how the company handles it claims more then anything else.

                            What good is a bargain premium if they won't pay or give you a big run around.

                            Jim- Are you still with American Modern?

                            Thanks for all the comments

                            Comment

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