Insurance Companies- my experience with Skisafe

[sdrevik]

I'm planning to switch from Skisafe (through Geico) to BoatUS. Given my good experience with GEICO for cars, I thought they'd have a good partner for boat insurance.

Bad call. Now that I have a claim, these folks can't even read their own policy coverage, and when I read what their policy says to them, their response is "that's not the way we do it."

Let's see if small claims court agrees with you.

Looking over my BoatUS quote, the coverage is much better, the same premium, and I understand they have better customer service. Anybody have any other experience?

I wish I had gone with BoatUS in the first place. Skisafe is awful.

 

[Nehalennia]

I'd like to know more details of what you're talking about. This is cryptic.

 

[sdrevik]

The boat is 1992, so the policy is for $16,000, with a 10% ($1600) deductible. Like many policies, there is a provision for older equipment, limiting "the total amount we will pay" to 25%, or $4,000. I can live with that. That section doesn't mention the deductible, just the total amount they will pay.

The next section even gives an illustration of the deductible for a total loss claim, stating that the "claim" will be reduced by the deductible to the "payment amount." OK, so that tells me, that payment comes AFTER deductible, using their language, and that the "claim" is the amount before the deductible.

In my case, the claim is, say, $6k, less deductible... well, there's that $4k ceiling, but again, I can live with that.

Nope, Skisafe takes $1600 off the $4k, and only wants to send a check for $2400. I think it's a violation of the contract, using their own contract language. And I'm pretty sure any judge is going to read those two sections, see the usage of the two terms, and agree with me. But we'll certainly find out here in a couple of months.

{if you must no- submerged object... must have been a pretty big log}

 

[Nehalennia]

Well if there's a $4k ceiling(which you can live with) and a $1600 deductible, I'm not sure that you have a case for more than the $2400.
I have them and an Agreed amount and I'm paying my premiums based on that agreed amount. I don't recall off the top of my head my deductible, but to me and your description, it sounds like your policy doesn't fit what you need(ed).

 

[comsnark]

I sure hope that insurance was cheap. . .or has HUGE liability limits. . .because it sure doesn't seem to give much coverage.

 

[dblvanos]

Is the $16,000 agreed value or is that the rating base for your boat? What is the NADA value on your boat at the time of loss? What is the point of having an agreed value policy with a 25% provision for older boats? Did you buy this over the phone or internet? Really if your boat was worth 4 then that is what the rating base should have been, leaving you with a much more realistic deductable. Or was the rating of $16k built so that you would be insrued for $4k?

I would never sell a client a policy like that, very unusual, especially for that type of boat.

 

[DragonAnchor]

I dont know Todd, If you always take 1600 off the 4k ceiling, then its really a 2400 ceiling

I dont have their insurance, but the way I read the OP, its a 1600 deductible from the claim amount, then they pay up to 4k of the remaining balance. So, 6k claim, take 1600 off, you get 4400, Insurance Complany pays 4000, and OP pays another 400.

But hey, I dont sell insurance, I just have it

 

[JediJD]

Attorney and former judge here...and just my $.02

In your favor...policies are usually to be construed AGAINST the drafter. It is up to them to make the issue very clear on limitations. In many cases, if it is ambiguous (depending on the state) it has to be decided in favor of greater coverage.

Against you...suing an insurance company over less than $2k is a daunting task and the existence of a claim will affect your future rates. Good luck.

Haven't seen your policy, but most have a provision for mandatory arbitration. This may or may not work in your favor, depending on who is on your arbitration panel. There have been instances of arbitrators making an entire living out of referrals from one company...obviously, these arbitrators can have a bias. In other cases, arbitrators are great.

 

[sdrevik]

Is the $16,000 agreed value or is that the rating base for your boat? What is the NADA value on your boat at the time of loss? What is the point of having an agreed value policy with a 25% provision for older boats? Did you buy this over the phone or internet? Really if your boat was worth 4 then that is what the rating base should have been, leaving you with a much more realistic deductable. Or was the rating of $16k built so that you would be insrued for $4k?

I would never sell a client a policy like that, very unusual, especially for that type of boat.

Their rationale is that the mechanical equipment is 4k of the 16k, the other 12k representing the hull itself (??). Even so, their version of the deductible makes it 2400 mechanical and 12k hull, which is even more skewed. That's what they claim blue book was (e.g., what they said their max payout would be regardless of any other opinion).

Policy was sold over the phone through GEICO, although I come to find out Geico just refers the sales to the other company, there's no relationship whatsoever. I've strongly suggested to Geico they terminate their relationship with Skisafe, since it reflects badly on what has proven to be so far a good company for car coverage.

Regardless, we're filing complaints with both states insurance commissioners, and a small claims suit ($250 to $300 to file and serve) and either settle for the full $1600 plus legal fees (is it worth their while to fly down here for the hearing?) or get summary judgment in their absence.