Yup...apparently BoatUS lost their shirt after the last round of 
hurricanes...boats over-insured etc.


David F. Risch

(401) 419-4650 (cell)


________________________________
From: CnC-List <cnc-list-boun...@cnc-list.com> on behalf of John Christopher 
via CnC-List <cnc-list@cnc-list.com>
Sent: Friday, February 9, 2018 11:56 AM
To: Joel Aronson
Cc: John Christopher; cnc-list@cnc-list.com
Subject: Re: Stus-List Restarting Thread - Insurance: SHAME on Boat U.S./Geico!

Hi,

Have been monitoring this thread from the Canadian north.

A pattern to consider in relation to depreciation is, considering the 
hurricanes, storms, frequency, numbers, and perhaps where people store their 
boats for the winter (mainland or other).

It comes to mind the insurers are also mitigating  their risk for the future. 
As a result they have devised a method that supports paying out far less than 
they do today due to the increased frequency of disasters.

I don’t mean to stir the pot here, just an observation.


/J

On Feb 9, 2018, at 11:30 AM, Joel Aronson 
<joel.aron...@gmail.com<mailto:joel.aron...@gmail.com>> wrote:

My GEICO policy has a deductible and this:

We will pay the reasonable cost of repairs with depreciation applied to the 
repair or replacement of the following items: inflatable dinghies, paint and 
finishes protective covers, fabric or sails. Depreciation shall also apply to 
outdrive units, outboard motors and gel coat beginning with the sixth year from 
the year of manufacture, and to internal machinery beginning with the eleventh 
year from the year of manufacture.

Joel

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On Fri, Feb 9, 2018 at 6:59 AM, John and Maryann Read via CnC-List 
<cnc-list@cnc-list.com<mailto:cnc-list@cnc-list.com>> wrote:

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<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<mailto: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<mailto: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<tel:(847)%20404-5092> (mobile)
bwhitm...@sbcglobal.net<mailto:bwhitm...@sbcglobal.net>

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Joel
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