Partial Loss Insurance

[psubill78]

So the wife and I are debating purchasing 2 jet skis, and in looking at PWC policies at Boat US (who we have our boat insurance through), we found that they prorate partial losses on certain items on PWC policies, starting at 10% a year after the PWC manufacture year, with a minimum coverage of 10%. As I read deeper, I see similiar stipulations on the boat insturance side as well - starting at 6 years!

Our Sea Ray (in damn great condition) is 14 years old. So that would mean any partial loss, and our insurnace will only pay 20% towards the repair. Things like an outdrive, or something getting hit with a log wouldn't be covered more than 20%!!!?! What if you replace the outdrives, does the 'clock' start over, or does it still go with the age of the boat itself?

Am I misunderstanding this? Anyone else out there with Boat US have a partial loss, and got hit with this?

Do any of the insurance carriers NOT do this?

 

[Gofirstclass]

I'd also check other marine insurance companies to see what they do. Essentiallly what BoatUS is doing is decreasing your coverage to match the declining value of your boat. At 10% per year, that barely matches the depreciation of the boat which could easily be >10% for the first 3-5 years. What they're saying is they're not going to pay you new values for used equipment. That's only fair.

The same thing applies to your lower unit and other equipment. It's 14 years old. Now, if you happen to hit a submerged object and destroy the lower unit, some insurance companies will replace your outdrive under the comprehensive part of the policy and you only have to pay for the deductible.

The reality of the value of your boat is that no matter how nice the boat is, it's still a 14 year old boat and it's not worth anywhere near as much as a new boat. Please don't take offense at that comment because my boat is 17 years old and it's worth only about 10%-15% of the price of a new boat.

 

[psubill78]

Understood on the value. My policy is an agreed value policy. So in a total loss, I'll get that amount. No more, no less. It's not replacement policy (ie, my 14 year old 34' for a 2012 34')

 

[JimT]

So the wife and I are debating purchasing 2 jet skis, and in looking at PWC policies at Boat US (who we have our boat insurance through), we found that they prorate partial losses on certain items on PWC policies, starting at 10% a year after the PWC manufacture year, with a minimum coverage of 10%. As I read deeper, I see similiar stipulations on the boat insturance side as well - starting at 6 years!

Our Sea Ray (in damn great condition) is 14 years old. So that would mean any partial loss, and our insurnace will only pay 20% towards the repair. Things like an outdrive, or something getting hit with a log wouldn't be covered more than 20%!!!?! What if you replace the outdrives, does the 'clock' start over, or does it still go with the age of the boat itself?

Am I misunderstanding this? Anyone else out there with Boat US have a partial loss, and got hit with this?

Do any of the insurance carriers NOT do this?

You have what is known as an actual cash value policy. The insurance will cover the cost of the repair up to the depreciated value of the component or the boat. If you boat is damaged and the ACV of the boat is $25,000 and the cost to repair is $30,000 they will only pay the $25,000 as the boat would be a total loss. if you damage the drive the same principle applies. They will pay the cost to repair up to the depreciated value of a 14 year old drive. ACV insurance is different than replacement cost which pays the cost to repair without deduction for depreciation.

 

[Bob & Sue]

Our policy is Agreed Value policy for the 1st 2 years as we bought it used, I would contact your insurance company and a couple others for quotes have it appraised to get the correct value you are probably paying a rate that is to high now for the value. Just my opinion others might have a better idea.

 

[Hellman Huddle]

First of all, run and run fast away from buying those jet skis. They are dangerous and a maintenance nightmare. Good luck finding anybody to work on them and get them back to you in a reasonable time. If they break down in the summer, you can hang it up for that boating season. As for insurance, personally I would stay away from companies like BoatUS that are strictly in the marine business. They know all the tricks of the trade to sell what you think you are getting but is different to what you are actually recieving. I use Allstate, who I have all my other stuff with and having recently tearing up my outdrive on a log, they paid all but the $250 deductable on a $6000 repair. No questions asked! My boat is seven years old. In addition, the marine policy companies are very strict on offshore issues, Allstate insures up to 100 miles off the coast.

 

[Bob & Sue]

As for insurance, personally I would stay away from companies like BoatUS that are strictly in the marine business. They know all the tricks of the trade to sell what you think you are getting but is different to what you are actually recieving. I use Allstate, who I have all my other stuff with and having recently tearing up my outdrive on a log, they paid all but the $250 deductable on a $6000 repair. No questions asked! My boat is seven years old. In addition, the marine policy companies are very strict on offshore issues, Allstate insures up to 100 miles off the coast.

I agree make sure you read exactly what is covered in what areas I'm covered in 4 states, 100 miles off shore (Pacific Ocean) and Western Canadian waters.