Read your policy...?

[Maine Sail]

I am reviewing my insurance policy as I do each year and just came across this one.

SALVAGE:

If we pay a total loss and there is salvage remaining, we have the optional right to recover that salvage to the extent of our payment.


Huh????????

 

[Todd Smith]

I am reviewing my insurance policy as I do each year and just came across this one.

SALVAGE:

If we pay a total loss and there is salvage remaining, we have the optional right to recover that salvage to the extent of our payment.


Huh????????

I think that means they own the boat if they pay a total loss.

Todd

 

[Tim R.]

Re: Read your policy!

I think that means if they payout a total loss to you they can take the boat and sell it for as much as the total payout if possible.

Give them a call and see what they say.

 

[Don S/V ILLusion]

Re: Read your policy!

This is typical and I doubt you'd find an underwriter who excludes that provision. It happened to me (total loss) and the boat belongs to them upon your receipt of payment.

 

[sailingdog]

Re: Read your policy!

Maine Sail—

I think that's pretty typical legalese for an insurance policy.

 

[kloudie1]

Re: Read your policy!

Yup.. same as auto policy.. When they total it, they own the wreck. You can usually buy it back from them for less than the settlement, if ya want to.. and for DIY folks it may be a good deal.

 

[Maine Sail]

Yep

Yep that's what it means. I thought it meant that if they paid me a total loss they could then, a their option, recover a portion or all of the expenses related to the salvaging of the vessel (getting git off the rocks) up to my agreed value.

I thought it meant "salvage costs" not the vessel/salvage itself..

This is why I never became a lawyer I hate that legalese language..

Glad I have you guys to keep me in line..

 

[Benny]

Yep, they would own the salvage value (any value after recovery expenses) up to the amount paid on the claim at which point any unlikely excess would revert to you. By "optional right" they mean they will decide wether they want to go after any salvage value at all.