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Conference unifix::sailing

Title:SAILING
Notice:Please read Note 2.* before participating in this conference
Moderator:UNIFIX::BERENS
Created:Wed Jul 01 1992
Last Modified:Mon Jun 02 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:2299
Total number of notes:20724

187.0. "Dealing with Adjustors" by RDF::RDF () Tue Oct 01 1985 16:48

Since several of us had damage during the hurricane and are probably dealing
with insurance adjusters right now.

It might be a good idea for us all to contribute some tips,reminders,warnings 
or items of note that could be useful in our dealings.
                                                      
	For example (these aren't the only topics..)

  	1.  How do you determine if hull damage is structural or not?
	2.  What items do most people forget to claim?
	3.  What to do if you and your agent are at odds?
	4.  Successful tactics for dealing with adjustors?
	5.  How is resale value affected?
    
It might be useful (I know it would to me), right now I pretty much have
to go on the words of a marine surveyor I am hiring, the yard estimate, and 
the insurance adjustor. Admittedly thats a bit more than a second opinion
but I'm sure there are plenty of things one could miss.

Rick



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187.1USMRW1::BRYANThu Oct 03 1985 18:1657
Rick,

I'm not really very informed to answer all the questions you've asked, 
but I can make a couple of comments based upon my experience in settling 
with an insurance adjuster in Florida for my catamaran destroyed by 
Hurricane Elena:

  -  If you have a specified value policy and the boat is destroyed, 
     then you are entitled to the entire amount.  Because it is the 
     insurance company that elects to cover a stated amount, they are 
     suppose to pay the entire amount or replace your boat with
     a comparable make and year.  Whether a boat is totaled depends
     upon the percentage of repairs to the insured amount.  Hence, a
     Catalina 30 might be totaled before a Sabre 30 would - given the
     same amount of damage.  Sometimes owners get together with a 
     boatyard a jack the damage way up to get closer to this percentage.

     Beware!  Some insurance companies try to sneak out of this and
     pay you a depreciated market value for your boat instead of the
     full, stated value.  I am going through this now.

  -  If your policy is depreciated from the make and year, then the
     situation for totaling the boat is based upon a lower market value.
     Insurance companies may then choose to total a boat more readily than
     they would if the policy has a higher stated value.  In this case,
     you probably want a lower yard estimate if you really want the boat
     repaired.

  -  Pay a surveyor to look over the yard estimates.  That is probably
     your best bet as to whether or not you are getting a fair shake.
     Boatyards are sometimes in league with the insurance companies 
     since that is where the money comes from.
 
  -  If your insurance agent tries to badger you into an unacceptable
     settlement, don't settle and perhaps contact a maritime lawyer.
     A simple little phone call or letter from a maritime lawyer will
     probably give you exactly what you want.  

  -  As for resale, any damage is definitely going to hurt resell if a
     surveyor detects it later.  My surveyor told me that a boat that 
     has been damaged can be made to be stronger than the original - but
     you can't count on this and he would advise his/her client against
     the purchase of the boat --- or at a sigficantly lowered price.  Case
     in point: New England Performance Yachts has had a C&C 24 on their 
     lot for over a year.  The boat is way under market value, but the
     boat once fell off its cradle and needed awlgripping, new rigging, 
     etc. and has a bad stigma attached to it now.

     Be sure to retain your repair receipts after the work has been
     completed: these can be used to counter the future surveyor if
     a question arises.  


Wish I knew more when I originally insured my boat ....

Bob

187.2TALLIS::RODENHISERFri Oct 04 1985 12:3031
I could be wrong, but my adjustor seems to be on 'my side'. His suggestions for 
how thorough I need to have the boat surveyed and the types of expenses that 
will be covered have cheered me up.

At the moment my damage appears to be mostly 'bolt on' replacement stuff, 
rudder, jib halyard, etc.; even the scratches are minor and near or below the 
water line. I mentioned that I had planned to bring the boat home this 
year and wondered if I could still do this. He said that by all means don't
change my plans and that they would cover the trucking tab.

Insurance will cover a number of expenses that I normally would have incurred
had there been no storm. Hauling, unstepping and storing the mast, cradle and
storage while surveying and estimates are performed and transportation to and
from a repair facility (my home). He warned me not to say that I was personally
going to make the repairs but if asked to just say that the repairs were
done while the boat was stored at my address. Since the insurance company
will pay an amount based on a yard/surveyor/adjuster estimate of repair costs I
should be able to recover most of my 1% deductible. This assumes, of course,
that I consider my labor to be free.

I'm not excited about doing this extra work but I am pleased that I'll still be
able to get the boat home. I had some major projects planned this winter, CNG
stove and "Cold Machine" already purchased, and I didn't look forward to the 3
hour roundtrip if I had to do that type of work in Marion. 

He also didn't think that my insurance rates would be affected by this claim
and also doubted that rates in general would change. His opinion that the 
rates already reflect the risks associated with the Buzzards and Narragansett
Bay areas.