The court of public opinion / the rest of the story

[waterboy1]

As i don't want to be guilty of slamming a company, I thought I would post a record of what has transpired, and let you all be the judge. Some may recall back in January I was looking to save some money on boat insurance, and I switched from Guico to BoatUS. On March 6th I hit a rock and damaged the lower end on my Merc 60 fr stk. After sending a report and estimate for repairs to BoatUS, I was informed that they had approved the repairs, and that I could let the Boat Locker order parts and go ahead with the repairs. This was to take place while I was in Texas for the week visiting grandkids, and that I should receive the check in a few days. Now I have a $250 deductible on the policy, and some mention was made about depreciation which I didn't quite understand, but didn't give it much thought as the boat is only 3 years old. When I got back from Texas I found the envelop in the mail from BoatUS, and proceeded to look at the check. I was quite upset at what I saw as the insurance company had reduced the payment for repairs by an additional $426 claiming depreciation of 25% on my engine, plus the $250 deductible, as well as making the check out (not to the boat locker as requested) but to myself and the bank in California who holds the papers on my boat. Now the motor on my boat was made in 2007, but the boat is a 2008, and I took delivery on Jan. 4, 2008. According to my policy with BoatUS, there is not supposed to be any depreciation on my motor until after the sixth year. By my understanding, that would cover me through 2013, but BoatUS counts the year the motor was manufactured as year one, and counts from there, now making the motor 6 years old, and worthy of depreciation. Of course! Now to make matters worse, I still have a check that has to be signed by a bank in California, and I'm in Tn. So I called the bank to find out how I was to get an endorsement on the check so I could pay the Boat Locker. They said I would have to endorse the check and mail it to them, and they would in turn mail a check to The Boat Locker. So yesterday I had to Fed-x the check to California so it would get there today, (at a cost of over $37) and was promised that they would overnight a check to the Boat Locker, so hopefully I can pick up my boat by Saturday. And I'll almost bet that the bank will reduce the amount of the check another $37+ dollars to cover the overnighting to the Boat Locker. My take away from this whole mess is that when I replace my insurance again, (and I will) I will know exactly what my next policy does and does not cover! Don't buy cut rate insurance!banghead

[Code357]

Thanks for sharing this information. It made me start thinking about the coverage on my boat and the questions I need to ask my agent. Good luck on your search for a new insurance company.
Take care

[EFslabs]

I am in the insurance industry and can confirm that depreciation is very common, depending on the type of policy. I would re-read your policy again to determine when depreciation would apply. Typically it will apply from year one. If it does in fact start at year 6, I would file a complaint with the TN Dept of Insurance, or whatever state Boat US is domiciled. My guess is that there is a reasonable explanation (that is supported by the contract language), even though it may not seem right to you. Sorry about your bad experience, hope I never have to file a claim.

[Don G]

That is exactly why I deal with my local agent.

[rnvinc]

That is exactly why I deal with my local agent.

X2

Sometimes cheaper is not better...

Rickie

[Tracker123]

I have BoatUS insurance and have had to file two claims through the years. They have been good to me, no problems. Maybe it was a particular agent you were dealing with. I highly recommend them.

[Locator79]

Another horror story, makes you grit your teeth doesn't it.

[TreednNC]

2007+6=2013??

[Shellback]

You need to speak to someone higher up at BoatUS. Outboard manufacturers stopped selling motors by year model. The date put into service is considered the "year' of the motor. So your motor would be a 2008.

[Cane Pole]

that is exactly why i deal with my local agent.

x3