Strange Insurance coverage.

[sailnoproblem]

A few weeks back I posted a tread about how great the job tow boat US did for my friend and I during a grounding. Just to recap we were bringing a new to him 27 foot Pearson from Atlantic City to Toms River when we ran aground and were pulled off Stern first which snapped the rudder.
The boat is now at Cedar Creek Sailing Center in Berkeley Township. Seems the insurance company which is boat US will only pay 20% of the cost of the rudder itself, they say due to depreciation because it's a 1988 model. Just a note the labor and Storage are covered. To me it sounds a little idiotic if you have damage to your car even if it's 20 years old they don't depreciate the part that has to be replaced. I just find the situation strange.

 

[kloudie1]

Seems like they are saying that a rudder is a "normal maintenance" item which I disagree with .. The challenge to them would be to produce data that the rudder on that model boat would be normally replaced or have a qualified surveyor say that the rudder was 80% used up. Some more discussion with their adjuster is in order.

 

[Rick D]

As Kloudie1 said, some push back is in order. First, a rudder is not a consumable item. Second, the insured is not being placed in a better position because of its replacement. This is a common misapplication of depreciation by adjusters.

 

[Don S/V ILLusion]

Once had an insurance company try depreciating the wood plugs used to plug a thruhull should it fail. And the wood plugs were still in the original packaging!

After 1year and 2 lawyers, they eventually paid in full ( the plugs were just an example of the games they played in a $150,000 total loss claim).


Notwithstanding, it’s common with claims to pay for functional replacement rather than new replacement parts.

 

[Pirate Dave]

Didn't know rudders depreciated. And me bragging about how much mine is actually worth.

Check the policy. If it is through Boat US it is agreed value. Simply disagree

 

[jviss]

I thought you said, in that previous post, that Towboat US took responsibility for breaking the rudder, and said they would make it right. So why is your insurance covering this???

 

[jviss]

By the way, I bent the rudder on my Catalina 36 in about 2013 or so, and my insurance company covered it in full, less my deductible. There was never a discussion of anything like depreciation. I suggest BoatUS insurance sucks.

 

[sailnoproblem]

I thought you said, in that previous post, that Towboat US took responsibility for breaking the rudder, and said they would make it right. So why is your insurance covering this???

You are correct, at the time they did then told my friend to go through his insurance co.. He has called them a few times now with no satisfaction. I assume that Tow Boat US sells a license to a tow company to perform the service.
He is now working with the Marina that has the boat for repair. Together they are working to adjust the total cost of repair and disputing the insurance company's numbers.
I am very happy I personally do not have Boat US Insurance.