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Insurance Claim - Depreciation


MotoGPTy

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It is common practice here in Canada , you have to fight for your claim. You pay the taxes on parts and labour here to, my fight has always been why an increase in my ins cost every year, I told that to a ins company one time and they told me a boat only lasted for five years I told them it was five years old when I bought it so why did they cover the hull, there answer was you schould be more carefully who you buy ins from. I have been boating for 40 years and at one point had Dominion of Canada refuse to cover me because I had never had a claim nice after taking my money for 22 years. Ins is like your kids take take take and when you want some thing back it's like realy.

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I set my deductibles on the boat pretty high (i.e., a couple thousand), such that it has to be pretty bad before I even consider an insurance claim. I view my boat insurance more like catastrophic/theft insurance. For small stuff like hitting a stump, I just self-insure. We've hit two stumps over the course of 8 summers. The first cost $1,100 and the second cost $2,100. I'm not sure I've come out ahead yet or not. I assume had I made claims, my insurance premiums would have risen more than they have.

My general philosophy w.r.t. insurance is to only insure against the occurrence of events that, should they happen, would substantially change our standard of living. Otherwise, self-insure (i.e., save and make sure you have a safety net for stuff like this). My parents on the other hand fully believe in all forms of insurance and extended warranties.

This is my thinking exactly. When I go to insure I calculate how many times I have to renew the policy to save that extra deductible amount. In the case of my truck it was just over two years worth of renewals. I don't plan on having a claim that often anyway and I also do bodywork on the side so it would have to be several thousand in repairs before I file a claim anyway.

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So this train car/trestle hit (while simply idling up the river) is going to cost around $6500 to repair. I found that the depreciation for parts is only going to be $260 (10%) on top of the $660 deductible. Not as bad as I was thinking but still a surprise (my bad for not examining the policy closer). I have our agent searching for Replacement Cost Value (RCV) policies vs the Actual Cash Value (ACV) type that I have currently.

I found that a few other neighbors at the marina have hit the railroad wreckage as well since the water has dropped...including a G25 while loaded down surfing. I think he pretty much ripped off all his running gear. Only a portion of this hazard is marked and it goes all the way across the river according to some kayakers I talked with recently. I've reached out to the Charlotte PD that patrols the river as well as the Lake Wylie marine commission. They said I need to show up to a monthly meeting to "potentially" get anything done about a present danger! Gotta love the bureaucracy. I plan on being more proactive and marking the area on the Navionics app I just started using as well as updating their "SonarChart" topo maps using the SonarPhone TBox depth finder that I'm installing up in the front bilge next to my ballast pumps. If you all haven't used the Navionics app, it's definitely worth checking out. They have a 1 week trial where it lets you use the "crowd sourced" updated SonarCharts. I think it's $10 per year. Not that it would have helped me avoid this in the first place but after I get done marking the hazard, hopefully it'll help others in the future.

It's not a good post unless there are pics associated with it so here's a pic of the hull after I replaced the prop and patched it with silicon since I had to put it back in the water for a few days before I could take it to the shop. As you can see, the propshaft bent up enough for the old prop to take a chunk out of the bottom of the hull! I didn't notice it at the time of the picture but the rudder was bent back slightly as well. I took the boat to a great shop in Knoxville called The Boat Works. It should all be good as new in a week or so.

AE3E33FD-E61A-4A83-8635-31ADB06BE3D7_zps

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I found that the depreciation for parts is only going to be $260 (10%) on top of the $660 deductible.

Not too bad, I guess. More insulting than anything, in my opionion.

Let them pay what they are going to then drop them quick. I bet they are going to cancel you anyway, so might as well fire them first before they insult you further or have a chance to recoup any of their losses from you with future premiums.

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Not too bad, I guess. More insulting than anything, in my opionion.

Let them pay what they are going to then drop them quick. I bet they are going to cancel you anyway, so might as well fire them first before they insult you further or have a chance to recoup any of their losses from you with future premiums.

Yup! I've asked our agent to go ahead and start searching. I'm not even addressing it with Travelers. Travelers might offer another type of policy though so we might end up with them again. It was my bad for not understanding but I'll know what to look for going forward.

Edited by MotoGPTy
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How do you get to $6500 from that?

Prop destroyed, propshaft bent, strut bent, rudder bent, fiberglass damage (spider cracks that went out from running gear areas too). Removal/replacement, alignment, lake test, glass work, tax...it all adds up. The shop and the insurance estimates were almost identical.

Edited by MotoGPTy
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Prop destroyed, propshaft bent, strut bent, rudder bent, fiberglass damage (spider cracks that went out from running gear areas too). Removal/replacement, alignment, lake test, glass work, tax...it all adds up. The shop and the insurance estimates were almost identical.

Wow, good thing I don't do estimates;) I'd think that list of stuff would be about 1500 in parts and a couple days of labor

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Wow, good thing I don't do estimates;) I'd think that list of stuff would be about 1500 in parts and a couple days of labor

Thank goodness you don't! New boat parts ain't cheap. :-)

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^^^Yes, also BIA automatically gives upto 20% above during first 5 yeasts to help with annual price increases.

So effectively 120% of MSRP if you have a total loss within first 5 years

BIA? How much are you paying for that 6 months? Include your deductibles...I'm also taking into account the cost of your boat which is much bigger than mine.

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Not too bad, I guess. More insulting than anything, in my opionion.

Let them pay what they are going to then drop them quick. I bet they are going to cancel you anyway, so might as well fire them first before they insult you further or have a chance to recoup any of their losses from you with future premiums.

Don't be too shocked if the new quotes are significantly higher than what you have been paying. After all, you just filed a claim.

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When My boat got thrashed by a rogue storm several years ago I was out in the storm trying to save it because I thought my insurance was ACV. turns out it was much better coverage than I had realized (I would have just let the boat and rocks have their time together, could have had a new boat) Progressive was awesome, never gave me any hassle and my rate did not go up, still has not gone up! The boat had $14,000 damage for hull fiberglass work , prop, strut & shaft.

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BIA? How much are you paying for that 6 months? Include your deductibles...I'm also taking into account the cost of your boat which is much bigger than mine.

Here is my basics.

24' boat. 550 HP

Boat agreed value 160000 trailer agreed value 12000

Deductible boat 1% so 1600 base disappearing over 5 years I think I know it is disappearing just not sure time frame.

Deductible trailer $250. (This is important to me as I have (6) 22" ghetto wheels on my trailer) I am always afraid I will find the boat up on blocks one day.

Personal property. Including surfboards, gopro, stereo add-ons. $10,000 coverage $100 deductible

One other key for me no lay up season, 12 months of use. My premium is a bit steep, but considering the level of coverage I am OK with it. $950 annually.

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  • 7 months later...

Near ALL insurance companies on boat policies depreciate the value of parts over time.  Take a 5 year old 23 LSV.  They won't pay full replacement of brand new parts such as a prop, shaft, wedge plates, etc. that are 5 years old.  They are insuring a 5 year old part, not a brand new one.  Usually repair shops have a huge selection of vendors to chose from that have refurbished parts that can be used to cover the amount the insurance company will pay out for the depreciated parts.  If someone has a 12 year old motor that was destroyed, the insurance company isn't going to pay for a brand new Indmar monsoon.  They'll pay the insured what a 12 year old Indmar motor's market value is.  

To get Replacement Coverage on partial losses (not a total loss), you pay much more and VERY FEW insurance companies off that on their boat policies.  On top of that, the boat usually has to be no more than 2 model years old at the start of the policy.  They won't take on a say 5 year old boat and offer Replacement Coverage on partial losses.  

 

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