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Old 11-12-2012, 11:35 AM   #1
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No compensation? (insurance coverage for loss of use)

Interestin' article about a damage settlement in a boating accident. One of the questions was in regard to "loss of use" of the boat. Answer: " the U.S. Supreme Court has ruled that no compensation is owed for loss of use of a recreational vessel. Recreational vessels do not generate income for their owners, and since leisure time has no measurable value, a damaged party may not recover for the loss of use of a leisure asset." Would this ruling also apply to a liveaboard vessel? How about a vessel that is used consistantly as a week-end condo?
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Old 11-12-2012, 12:11 PM   #2
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Quote:
Originally Posted by ancora View Post
Interestin' article about a damage settlement in a boating accident. One of the questions was in regard to "loss of use" of the boat. Answer: " the U.S. Supreme Court has ruled that no compensation is owed for loss of use of a recreational vessel. Recreational vessels do not generate income for their owners, and since leisure time has no measurable value, a damaged party may not recover for the loss of use of a leisure asset." Would this ruling also apply to a liveaboard vessel? How about a vessel that is used consistantly as a week-end condo?
We tried to get compensated for loss of use as a live-aboard but decided not to spend the money. In 1997, we hauled out to changed 3 thru-hulls and add a transducer (on our last boat). After pressure washing washing, the boat yard was turning us around to block and brace when the rear strap broke. Four and a half months and $66,000 later we were back in the water. During that time we found an apartment to sublet.

Our insurance company (who paid for all the repairs) said, "no, loss of use is not covered". The boat yards insurance company paid our deductible immediately, after we sign a release saying that it was not a admission of guilt, but said no on the loss of use.

We talked to a lawyer and his comment was how much do you want to spend to "maybe" get your rent money back and loss of use? We followed the lawyers advice. If the insurance companies had been difficult to deal with, maybe we would have looked further at the rent/loss of use as part of an over all claim. At the end of the project, the boat was repaired equal to or better than new condition, with out any out of pocket expenses other than the sublet. In this case, I think the insurance companies were smart.
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Old 11-12-2012, 12:18 PM   #3
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There is a provision in our homeowners policy that provides for loss of use. I wonder if that could also be added to a yacht policy if a person was living aboard?
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Old 11-12-2012, 01:29 PM   #4
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This is from our boat policy. :

TYPES OF LOSSES COVERED
We will pay for property damage to the insured boat, its engines and items listed in “What is Covered” from any accidental cause including theft or vandalism. We do not pay for any intangible loss, such as loss of use or value or obsolescence. All coverages are subject to the limitations and exclusions of the policy.
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Old 11-12-2012, 03:57 PM   #5
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If it a live aboard policy its should. A week-end condo probable not.

Good question I will call my broker with the question.
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Old 11-14-2012, 06:31 PM   #6
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Several years ago I was aboard my 330 Sundancer when we were hit by a boat being skippered(?) by a person who was drunk. We were drifting, power off, nav lights on, after dark.

As part of the settlement his insurance company paid me was for loss of use of my boat at the rate of $3000/week for four weeks. This was the period between when we were hit and when they overnighted the settlement check to me.

The reason the other party's insurance company attorney told them they had to pay was that I frequently used my boat for entertaining clients, and the accident happened in July, which is prime boating time.
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Old 11-14-2012, 06:53 PM   #7
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File a civil suit.....don't use a lawyer unless a counter suit is filed (probably) but what you are hoping for is the opposing lawyer to offer a reasonable settlement before anything goes to court.

From my experiences in court...outsmarting most lawyers is no big thing if you do your homework...they are too busy with other things much of the time.
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Old 11-14-2012, 07:00 PM   #8
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All depends on the policy wording. Most yacht policies exclude loss of use, while some of the high-end policies have the coverage as standard.
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Old 11-14-2012, 09:25 PM   #9
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Welcome aboard GFC!
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Old 11-14-2012, 09:44 PM   #10
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+1 gfc...
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Old 11-14-2012, 11:26 PM   #11
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Thanks. If my wife ("GW", also known as my Galley Wench) knew that I'd found yet another boating website to hang out at, she'd probably comb my hair with a brick.

A link on CSR let me here. Nice place. I may hang around for awhile!
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