In a message dated 9/5/03 12:03:01 AM Eastern Daylight Time,
trawler-world-great-loop-request@lists.samurai.com writes:
Be accurate in your insurance amount, particularly if you have an AGREED
VALUE POLICY.
I had an 8 year old boat originally insured as AGREED VALUE at its purchase
price, $300,000.
As the years went by, I never reduced the coverage amount. In case of a
total loss I would actually have received $300,000, even though the Market Value
might not be more than $250,000.
So why do the Insurance Companies go along with excess insurance ?
Simple; there are probably 100 fractional losses for each total loss, and for
fractional losses the DEDUCTIBLE is the secret.
I had a fractional loss, and with 2% deductible (not on the loss, on the
insured amount) my deductible was $6,000.
Had I changed the Agreed Value to the more proper $250,000, my deductible
would only have been $5,000.
So for fractional losses, your most likely loss, I have paid extra premiums
only to have higher deductible.
That is why insurance companies have all the money, they are smarter than we
are.
Erik M. Andersen
Nordhavn 47-16 (Jan. 2004)
How old is your boat ? What is the REPLACEMENT cost?
ACV insurance will only pay a portion of any loss and these claims are very
difficult to adjust because it is hard to estimate the life of an engine or
a
mast ..... except a good guide is the % of ACV to replacement. If you are
only
insured for 30% of replacement (say $30,000 ACV vs $100,000 replacement),
you
will only collect 30% of the cost of any claim.(up to the insured value of
your vessel). This should not apply to liability coverage but Allstate
tries
to use it on the liability section too.
B.Deans, marine insurance underwriter
In a message dated 9/5/03 12:03:01 AM Eastern Daylight Time,
trawler-world-great-loop-request@lists.samurai.com writes:
Be accurate in your insurance amount, particularly if you have an AGREED
VALUE POLICY.
I had an 8 year old boat originally insured as AGREED VALUE at its purchase
price, $300,000.
As the years went by, I never reduced the coverage amount. In case of a
total loss I would actually have received $300,000, even though the Market Value
might not be more than $250,000.
So why do the Insurance Companies go along with excess insurance ?
Simple; there are probably 100 fractional losses for each total loss, and for
fractional losses the DEDUCTIBLE is the secret.
I had a fractional loss, and with 2% deductible (not on the loss, on the
insured amount) my deductible was $6,000.
Had I changed the Agreed Value to the more proper $250,000, my deductible
would only have been $5,000.
So for fractional losses, your most likely loss, I have paid extra premiums
only to have higher deductible.
That is why insurance companies have all the money, they are smarter than we
are.
Erik M. Andersen
Nordhavn 47-16 (Jan. 2004)
How old is your boat ? What is the REPLACEMENT cost?
>
> ACV insurance will only pay a portion of any loss and these claims are very
> difficult to adjust because it is hard to estimate the life of an engine or
> a
> mast ..... except a good guide is the % of ACV to replacement. If you are
> only
> insured for 30% of replacement (say $30,000 ACV vs $100,000 replacement),
> you
> will only collect 30% of the cost of any claim.(up to the insured value of
> your vessel). This should not apply to liability coverage but Allstate
> tries
> to use it on the liability section too.
> B.Deans, marine insurance underwriter
