Have made inquiry to our agent on this point - will advise.  Seems a good
idea for all of us to do check on this

 

John and Maryann

Legacy III

1982 C&C 34

Noank, CT

 

From: CnC-List [mailto:cnc-list-boun...@cnc-list.com] On Behalf Of Randy
Stafford via CnC-List
Sent: Thursday, February 08, 2018 8:33 PM
To: cnc-list@cnc-list.com
Cc: Randy Stafford; Keith Bridges; Keith Oulson; Judi Suarez; BoatUS
Subject: Re: Stus-List Restarting Thread - Insurance: SHAME on Boat
U.S./Geico!

 

Thank you Bruce.  I have made the decision to switch from BoatUS to
Ameriprise/Progressive.

 

Cheers,

Randy

 

On Feb 8, 2018, at 5:43 PM, Bruce Whitmore via CnC-List
<cnc-list@cnc-list.com> wrote:

 

Hello all,





First, thanks to Eric for pointing out a CRITICAL provision in the new Boat
U.S. policies now issued by Geico.  







I read my new policy (which has only been in force since February 2nd) and
found the following provision:





"We will pay the reasonable cost of repairs and replacements, in accordance
with quality marine repair practice, less depreciation (emphasis added).
Depreciation shall be calculated at 10% for each year beginning with the
20th year from manufacture.  In all cases, there shall remain no less than
20% residual value regardless of age."





I then researched all the information provided during the quoting process.
This was not disclosed.  I then called Boat U.S., and they agreed they had
not informed me of this provision, and then offered me (for an upcharge of
$64), an endorsement that would take away the depreciation provision, but
only for the hull, mast, spars, railings, but not much more.  They do not
normally offer this endorsement unless the boat is less than 10 years old
(So what's the value in that?).  In my mind, that endorsement is worthless -
just think about that nice $2,000 chart plotter that gets fried by
lightning...







For a 1994 boat like mine, that means a partial loss would have only
resulted in recovery of 60% after the $1,200 deductible, and for my last
boat, (a 1977) only 20%.  For that kind of coverage on my old boat, I'd just
go bare!  The policy I had in place until last week was slightly more
expensive. but does not include a depreciation provision of that magnitude.








I am immediately urging all folks I know to immediately shop their coverage
and move it to a company that does not apply depreciation as soon as
possible. 







1).  I am embarrassed to have to admit that as a person with 30+ years in
the insurance industry, I had not read my policy.

2).  The person I spoke with on the phone confirmed that this was not a
provision of the prior CNA policies issued through Boat U.S.



3). I consider this bad faith on the part of the insurer and the licensed
brokers at Boat U.S.  I intend to file a formal complaint with the Florida
Department of Insurance accordingly.





This is exactly the kind of thing that would get me involved in an Errors &
Omissions claim if I did this to a client, and I made that abundantly clear
to the person I was talking to at Boat U.S.







I will also post this on other boards.

 

Bruce Whitmore
1994 C&C 37/40+ "Astralis"  
(847) 404-5092 (mobile)
bwhitm...@sbcglobal.net

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