Isn't insurance fun?

T

tobnpr

New Member
Nov 12, 2006
3,246
New Port Richey, Florida
Boat Info
1988 300 DA
Engines
tw 350's w/ Alphas
So I've grown tired of giving Boat U.S./CNA 6% of the agreed value of my boat every year for insurance and called around.

Got a quote that was roughly half of that- from an admitted, A-rated carrier. Seemed too good to be true... you know what they say...

I wait to get notice that my CNA policy will cancel for non-payment, and email the agent that I'd like to start the coverage with the new company that day.

She emails me the apps to sign, then emails an invoice along with a pdf file of the policy. Everything looks fine until I get to the policy exclusions, like I said, too good to be true...

The policy EXCLUDES salvage charges! WTF! This is ridiculous, and an obvious deal-killer. It's like having no insurance at all...

I'm going to ask the agent if this can be added by endorsement, but it's still bullsh** that they didn't disclose this exclusion up front. FYI- the poicy is written by National Interstate Insurance Co. Forewarned is forearmed...
 
So if you have to recover your vessel, your insurance company won't pay for it?

Doug
 
this was a big issue for some after a local Marina fire.. some had to pay to remove the total loss hull from the yard! I confirmed my travlers policy has this coverage!! Not something you think of until you need it!!
 
I've always said the hardest check to write is to pay a damn insurance premium.
 
tobnpr said:
So I've grown tired of giving Boat U.S./CNA 6% of the agreed value of my boat every year for insurance and called around.

Got a quote that was roughly half of that- from an admitted, A-rated carrier. Seemed too good to be true... you know what they say...

I wait to get notice that my CNA policy will cancel for non-payment, and email the agent that I'd like to start the coverage with the new company that day.

She emails me the apps to sign, then emails an invoice along with a pdf file of the policy. Everything looks fine until I get to the policy exclusions, like I said, too good to be true...

The policy EXCLUDES salvage charges! WTF! This is ridiculous, and an obvious deal-killer. It's like having no insurance at all...

I'm going to ask the agent if this can be added by endorsement, but it's still bullsh** that they didn't disclose this exclusion up front. FYI- the poicy is written by National Interstate Insurance Co. Forewarned is forearmed...
Click to expand...
FWIW, It's not a good practice to let your old ins co cancel you for non-payment, affects credit rating. Always take the time to cancel the coverage as of a specific date.
 
douglee25 said:
So if you have to recover your vessel, your insurance company won't pay for it?

Doug
Click to expand...

You raise an interesting point. Here is the salvage exclusion:

""Salvage charges" mean the mean the charges for which YOU are liable under maritime law for the voluntary rescue of the INSURED BOAT."

It also says that they will pay for "Necessary wreck removal or disposal charges".

So when does "salvage" become a "wreck" ????????????

It is also unclear to me at this time whether "wreck removal" would be in addition to, or included within, the policy limits.

I'm not even clear on this with the CNA Yacht Policy. Under "Salvage Charges" at the bottom of page 3 it says:
" In the event of a salvage of a boat, coverage for salvage charges is limited to an amount not to exceed the agreed value".

So, is this within, or in addition to, the policy limits? If your boat is insured for an agreed value of $150,000- and she sinks at the dock and costs $25,000 to salvage and dispose of do you get only $125,000 for your boat?

The only other verbage I can find related to this says that "We reserve the right to declare the boat a constructive total loss and pay you the agreed value if in our judgement costs of salvage and/or repair exceeds such value". Still doesn't seem to clarify it for me.
 
I think the term "salvage" needs to be defined.

To my uneducated reading, this sounds like a 'voluntary salvage' sounds like the call to seatow when you have a mechanical (say, you have a fuel problem and both engines are down). Now, if agreed value is say, $1000 and the oil cleanup costs $100,000. . .where do you stand?

BTW: Didn't they force you to survey prior to re-insuring?
 
Here's a "not-so-technical" view of voluntary salvage. It seems that anyone who salvages your boat that is not obligated or legally bound to do so, is a voluntary salvor. I guess if you don't give permission and they salvage the boat anyway, they get a preferential lien or things have to be settled out after the fact. In any event, it seems that coverage for salvage is tantamount.

http://www.boatus.com/towing/guide/salvage/


I guess you fill one of these out as you're taking on water...
http://www.boatus.com/towing/guide/salvage/contract.asp
 
Last edited:
Im going to re-read my policy as well as my marina slip agreement. Im having a daytime nightmare..... An uninsured boater hits, sinks & totals my boat. Then the marina tells me I owe them $x for raising & removing my boat.
 
Now I am confused!

I guess the difference between "salvage" and "towing" is how much a pain in the butt the project is?
 
comsnark said:
I think the term "salvage" needs to be defined.

To my uneducated reading, this sounds like a 'voluntary salvage' sounds like the call to seatow when you have a mechanical (say, you have a fuel problem and both engines are down). Now, if agreed value is say, $1000 and the oil cleanup costs $100,000. . .where do you stand?

BTW: Didn't they force you to survey prior to re-insuring?
Click to expand...

The policy does have $300K in pollution liability. I don't think a Seatow call for mechanical problems would be considered as salvage unless I requested they come get me offshore in a Hurricane. I know the line between what's salvage and what's not can be blurry and that's why some cases end up in court. I believe Sea Tow has language in their servce agreement that if they consider it to be a salvage case when arriving on scene, they need to inform the operator and obtain consent; IOW if it's not a routine tow or assistance call.

They accepted the two-year old survey I had done when I purchased the boat.

Ron- thanks for the link. Guess that defines "voluntary salvage" (as opposed to "contract salvage"). I guess there's no such thing as "involuntary salvage" (?)

I point all this out only to let others know that if you haven't done so before, it's a good idea to pull out the paperwork and review it. Had I not looked at what was sent me and just mailed in the check, I might have regret it someday. Particularly here in FL- if I got whacked by a 'cane it could be very costly...
 
I'm not an admirality lawyer, so I'm not going into the salvage question. I did, however, dump my BOAT/US insurance policy when they significantly raised their rates because of huge loses in Florida. Since I don't boat in Florida, I don't see why that was my problem. Anyway, I found another yacht policy with the same coverage and limit a much less money.
Best regards,
Frank
 
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