Insurance Totaled My Boat

Hi All!
Looking for any advice.
When our boat sank, the insurance company totaled it and paid out what we bought it for.
But we raised it, saved the engines, saved the generator, pretty much saved everything and piloted it 1200 miles home. This is not a heap of junk just barely floating. lol.

We are now in drydock, in the middle of restoration but the insurance company has said they are not renewing our policy once it expires.

Does anyone have any insight on what kind of questions to ask or how to discuss a policy with a new insurer? Or do you have any personal experiences that might guide us to a new insurance company?

Thank you all, as always

Did you buy it back from the insurance company? Certainly want documentation that you now / still own it. I'm sure the first thing that any new company will want is a very thorough survey. Then the issue of exclusions for anything relative to the sinking will come up. Liability shouldn't be to hard to get. Hull value will be tougher.

Ted

Oh I'm so sorry. If you don't mind me asking, how did she sink?

Who was your ins. company? Mine is a well known boat insurer. They wanted a copy of the survey, hull id number, etc. No named storms could be in the atlantic and once I gave them my first born, they wrote the policy a couple days before closing because I didnt want them to change their minds.

I have no idea how it works when a boat is totaled. Wouldn't the title be an issue?

Donna asks an important question as any insurer would be concerned the same thing will happen again. I would be surprised if anyone would grant hull insurance. If it was a car, then it would get a Salvage Title. Some states even have Scrap Titles.

Basically you're trying to insure something that was determined to have a value of Zero.

How about if the boat has a new survey? If the boat has been rebuilt, repaired, rewired, etc, why not have an insured value?

I'm just throwing this out there.

Larry M said:

How about if the boat has a new survey? If the boat has been rebuilt, repaired, rewired, etc, why not have an insured value?

I'm just throwing this out there.

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Plus, I'd appreciate it being insured if it's side tied to our boat and goes down again

BandB said:

Basically you're trying to insure something that was determined to have a value of Zero.

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We don`t know that. Insurers may write off a car as economically unrepairable, taking into account the sale value of the wreck, which they sell to recoup part of the total loss payout. The use the OP is making of the boat suggests it has some value.
The outstanding information is whether the OP has title to the boat? As part of a total loss payout I`d expect the insurer acquired ownership of the "wreck". To have title the OP needs to have acquired title from the insurer, to have retained or acquired an "insurable interest" in the boat.
(I`ll just qualify the above for the possibility things work quite differently over there for insurance).

Inghamphoto said:

The insurer has first right to recoveryof the vessel. They will then sell it at salvage back to the insured. Once therepairs have been made, and a new survey determines the value, the boat can beinsured at an agreed value. The company will require that any deficienciesnoted by the surveyor be addressed. Most States do not Title boats.

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Yes, we don't know what his deal with the insurer was.

And most states do title boats except documented vessels.

Larry M said:

How about if the boat has a new survey? If the boat has been rebuilt, repaired, rewired, etc, why not have an insured value?

I'm just throwing this out there.

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They might, treating it somewhat like a home built boat. Someone out there will insure anything. However, I think far more likely he can get everything but hull coverage. Now some of this does depend on the reason for sinking and on the owner's record.

So, the insurance company paid the claim for what you paid for it and gave you the boat, and they didn't charge you for the hull value? If so, you made out fine.

At this point, who cares about hull insurance, you just beat the odds, get a liability policy and carry on. Life is good. It could sink again, and you're still ahead.

In Florida titles are required. I even had to have a title search done.

I would imagine since you were paid for a total loss, then the title would have a lien on it by the ins. company?

Donna said:

In Florida titles are required. I even had to have a title search done.

I would imagine since you were paid for a total loss, then the title would have a lien on it by the ins. company?

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Donna,

Sounds strange... but perhaps some of the insurance guys can comment.

I've only had one experience... years ago when I had insurance. Totaled (not a boat), insurance company released their interest in it to me... no title change, but I did pay for it. Simple.

The insurance co. might have determined the boat had little value after recovery and may have made no effort to claim title.

O C Diver said:

Did you buy it back from the insurance company? Certainly want documentation that you now / still own it. I'm sure the first thing that any new company will want is a very thorough survey. Then the issue of exclusions for anything relative to the sinking will come up. Liability shouldn't be to hard to get. Hull value will be tougher.

Ted

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Hi Ted, yes, we definitely still own it. We paid cash when we bought it and found an insurance company that inspected and was willing to insure it for what we paid and when we lost it, we made it very clear we were maintaining possession even if they paid, and if they wouldn't allow that to keep their money. We were fairly confident even at that time that it was save-able. Thank you for the insight

Inghamphoto said:

The yacht underwriter will look to why the boat sank. Operator error, orunavoidable accident? Is this your first claim, or do you have other claims onyour record? They will also run a credit check to assess your ability to maintainthe boat. One claim does not disqualify you from obtaining new insurance, butexpect to pay a bit more. Find a good agent with multiple underwriters tosubmit your application to. If there are no other issues, you should be able tofind good coverage.

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Definitely not operator error (thank goodness!) And Positive answers to all of those questions....I'm feeling a little better now. Thank you!

Donna said:

Oh I'm so sorry. If you don't mind me asking, how did she sink?

Who was your ins. company? Mine is a well known boat insurer. They wanted a copy of the survey, hull id number, etc. No named storms could be in the atlantic and once I gave them my first born, they wrote the policy a couple days before closing because I didnt want them to change their minds.

I have no idea how it works when a boat is totaled. Wouldn't the title be an issue?

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Small local company Donna. We paid cash for our boat so they inspected and went off of a previous survey. The adjuster determined it to be an accident that was not negligence. We are blessed to be mechanically inclined and that they paid as well as did not require "taking custody" in order to do that. LOL

Larry M said:

How about if the boat has a new survey? If the boat has been rebuilt, repaired, rewired, etc, why not have an insured value?

I'm just throwing this out there.

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That's what we're hoping for too Larry!

MurrayM said:

Plus, I'd appreciate it being insured if it's side tied to our boat and goes down again

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LOL Murray....That makes two of us!

wonderfuljenn said:

Hi Ted, yes, we definitely still own it. We paid cash when we bought it and found an insurance company that inspected and was willing to insure it for what we paid and when we lost it, we made it very clear we were maintaining possession even if they paid, and if they wouldn't allow that to keep their money. We were fairly confident even at that time that it was save-able. Thank you for the insight

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I think you have a good plan going forward. If your insurance will lapse before the restoration is complete, see if you can get the liability insurance with a minimal hull coverage. My friend bought a sailboat this summer that had moisture in the coring in one section of the deck. The boat was substantially reduced in price as a result. He's only able to get liability insurance and minimal hull insurance until the deck is repaired and that portion is resurveyed. While hull insurance is important, liability insurance is what protects you in an accident.

Ted

wonderfuljenn said:

Small local company Donna. We paid cash for our boat so they inspected and went off of a previous survey. The adjuster determined it to be an accident that was not negligence. We are blessed to be mechanically inclined and that they paid as well as did not require "taking custody" in order to do that. LOL

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Why are you so deftly avoiding answering the question of how it sank?

A small local company insured you? Do you mean the agency was small and local or the underwriter? I think of the underwriter as the insurer.

This is what I was thinking, forget the insurance, get liability and call it a day.

Seevee said:

So, the insurance company paid the claim for what you paid for it and gave you the boat, and they didn't charge you for the hull value? If so, you made out fine.

At this point, who cares about hull insurance, you just beat the odds, get a liability policy and carry on. Life is good. It could sink again, and you're still ahead.

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I think it is now standard operating procedure with many (plese note I didn't say ALL). I've placed two claims over the last 10 years. Both times the insurance company denied renewal. Just move on and get a policy with a new insurance company.

Shrew said:

I think it is now standard operating procedure with many (plese note I didn't say ALL). I've placed two claims over the last 10 years. Both times the insurance company denied renewal. Just move on and get a policy with a new insurance company.

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Very often true.

BandB said:

Why are you so deftly avoiding answering the question of how it sank?

A small local company insured you? Do you mean the agency was small and local or the underwriter? I think of the underwriter as the insurer.

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Not "deftly avoiding" anything sir. It's a long story and since an insurance adjuster found there was no negligence I felt that was an adequate response to the poster's question. If you do not...well, Press On Brother.

Have a blessed night

That's very likely what we will do until a full survey allows us to insure it for the value including all the work we have put into it

wonderfuljenn said:

Hi Ted, yes, we definitely still own it. We paid cash when we bought it and found an insurance company that inspected and was willing to insure it for what we paid and when we lost it, we made it very clear we were maintaining possession even if they paid, and if they wouldn't allow that to keep their money. We were fairly confident even at that time that it was save-able. Thank you for the insight

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Interesting. Any insurance contract would pay you based on the policy language (agreed value or actual cash value) and then exchange payment for the title.

I'm a bit late to this party, but in general, I (as an underwriter) will look at all the factors of the sinking to determine if I will offer coverage. The survey is a part of the info required, to be sure- but I'll want to know about the loss, and what was done to mitigate the loss.

wonderfuljenn said:

Not "deftly avoiding" anything sir. It's a long story and since an insurance adjuster found there was no negligence I felt that was an adequate response to the poster's question. If you do not...well, Press On Brother.

Have a blessed night

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I respectfully say: Wouldn't it be good for other boaters to take into caution why/how your boat sunk so they/we-all can be careful to not have same occurrence? Please share the reasons for your experience... if at all possible.

A big feature of Trawler Forum posts is so we can learn from one another.

Thanks, Art

I agree. My boat (which I also paid cash for) Has yet to leave the marina!!! BUT, when she does, I do want to avoid every possible thing that could sink her. So, it would be helpful for me to know the "how".

Anyway, I wish you success with your boat. You are braver than I am. If my boat sunk, I'd be searching for a another boat.