Named storm exclusions in policy . . .

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jwnall

jwnall

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Joined
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Vessel Name
Morgan
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Gulfstar 36
A friend asked me this question. I didn't know the answer, but told him that I knew a place where I could probably get him a definitive answer. And so I am posting it here.


My friend went to the Bahamas back in January (sailboat, but he is a good guy), loved it, and thought about leaving his boat there for the summer. His better half vetoed that, and so he is back Stateside now.


But he wondered, and guess I wonder too. His comprehensive insurance has a "named storm exclusion" rider, and he reads it as he would have no coverage for damage if he had left the boat there and along comes Hurricane Dorian.



So it would be a total loss? He would not get any money if the boat is lost in the named storm? I know policies differ, but is that the general gist of it?
 
Be right back with an answer ( on the road...)
 
At face value with what you have told us sounds like he would be out of luck. I believe my policy has a higher deductible for a named storm, but since we are in Michigan, I really didn’t pay too much attention to it.
 
jwnall said:
A friend asked me this question. I didn't know the answer, but told him that I knew a place where I could probably get him a definitive answer. And so I am posting it here.


My friend went to the Bahamas back in January (sailboat, but he is a good guy), loved it, and thought about leaving his boat there for the summer. His better half vetoed that, and so he is back Stateside now.


But he wondered, and guess I wonder too. His comprehensive insurance has a "named storm exclusion" rider, and he reads it as he would have no coverage for damage if he had left the boat there and along comes Hurricane Dorian.



So it would be a total loss? He would not get any money if the boat is lost in the named storm? I know policies differ, but is that the general gist of it?
Click to expand...

Each policy is unique unto itself with regards to coverage. In the above case, a Named Storm Exclusion is exactly that- coverage is excluded in total for any damage (partial or total loss) to the vessel as a result of any storm named by NOAA. So, had the gent left his boat in the Caribbean (assuming he remained inside his navigation limits) and a loss occurred that was NOT related to a named storm, the policy would respond to handle the claim. Damage from a named storm (of any type) would not be covered.

This is a timely question, not just because of the current situation with Dorian, but because many insurance carriers are revising and tightening their underwriting criteria for vessels moored in Caribbean.
 
It's so important to read and understand every word of your policy. Some have exclusions such as this one or conditions or different deductibles. There are other things in the policy that can be just as bad.
 
My policy specifically states a $10,000 deductible for a named storm.
 
I thought it was only fair.
 
I spend summers out of FL. As such, I have a named storm exclusion from June 1st through November 1st basically in FL (a latitude slightly above the FL line). For my insurance, that represents a substantial savings. As BandB mentioned, very important to understand what the exclusions are, where they apply, and if there are dates associated with those exclusions.

Ted
 
I live in FL year round since 1990, and my Markel policy has a named storm exclusion giving, as OC Diver says, big savings. I am very confident in my ability to keep my boats safe, and as evidence of that, Cat Five Michael, while a near-run thing, didn't get me, nor did Opal in 1995 nor any of the numerous named stormed blowing by here in between. I have probably saved half the value of my boat over the years not paying what to me is needless insurance. But not everybody has the same knowledge, resources, and capabilities, and everybody needs to stack these up against the need to have named storm insurance.
 
rgano said:
I live in FL year round since 1990, and my Markel policy has a named storm exclusion giving, as OC Diver says, big savings. I am very confident in my ability to keep my boats safe, and as evidence of that, Cat Five Michael, while a near-run thing, didn't get me, nor did Opal in 1995 nor any of the numerous named stormed blowing by here in between. I have probably saved half the value of my boat over the years not paying what to me is needless insurance. But not everybody has the same knowledge, resources, and capabilities, and everybody needs to stack these up against the need to have named storm insurance.
Click to expand...

Part of your success is taking the time to read and understand your policy (yep- it’s me, the broken record again!). Too often, I hear of a claimant that states “I was told everything is covered”. This tells me that one of the following happened:

  • The agent did not plainly advise on the coverages and exclusions.
  • The policyholder never read the policy.
  • Both of the above.
 
I also have an increase in deductable ina named storm (more than doubles). The worst part is the depreciation schedule for all repairs or replacements on a claim.
 
I’ll take the increased deductible for the reasonable rates. Tampa Bay has been pretty blessed when it comes to major storms.
 
Bud said:
I also have an increase in deductable ina named storm (more than doubles). The worst part is the depreciation schedule for all repairs or replacements on a claim.
Click to expand...

Cat storms are devastating- to the point that insuring companies reinsure themselves for this specific type of loss.

Still, cat storms are devastating...and expensive. The higher storm deductible offsets the cost of insurance. The alternative is 100% self insure, as the surging companies would simply not offer coverage in cat prone areas.

With regards to depreciation- stuff wears out, and it’s unreasonable to think that a 30 year engine should be replaced with a new engine if it fails. Better to have some coverage than none at all (like your auto policy)...
 
I pay a premium for stated value on our boat. Again fair to both parties. I’m not here to screw the underwriter I just want a fair deal. Some carriers will do that.
 
I have casualty insurance ONLY because there is a note on the boat and the note holder demands it. If it were paid for I would only have liability. On my airplanes I only carry Hull Insurance on the plane if it is damaged on the ground (not flying) My theory is if a flying accident occurs that is more than I can handle financially, I will probably be dead anyway so who cares.
 
jimisbell said:
I have casualty insurance ONLY because there is a note on the boat and the note holder demands it. If it were paid for I would only have liability. On my airplanes I only carry Hull Insurance on the plane if it is damaged on the ground (not flying) My theory is if a flying accident occurs that is more than I can handle financially, I will probably be dead anyway so who cares.
Click to expand...


Well, I do appreciate the afternoon chuckle!
 
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