Is all marine insurance this bad?

[Guest]

After an argument with a bridge, which I lost (along with my mast), I put in a claim to Nautical Insurance Company in Leigh-on-Sea. I got 2 quotes as requested and hardly expected there to be a problem…..this after all was what I had paid my insurance for. Or was it?? The cost of replacing the mast, boom and rigging on my 20 year old Seawych is close to the stated value of the above plus the hull. This seems to be a major problem for the above company. “There’s obviously going to be an element of ‘betterment’ they cry! We can’t have that! If the mast alone costs this much, then the boat must have been underinsured.” “Hang on” I reasonably respond….”This does include labour y’know. The mast etc won’t cost that much but the mast plus fitting it will. And that won’t add to the value of my boat. She won’t be worth anymore than she was before…honestly!” But to no avail. So far, they have offered me a part payment towards repair or a write off value less a buy back sum for the hull. Either will leave me paying the difference. I didn’t look for cheapskate insurance and was asked for her value when taking out the policy…..not what the cost of repairing her might be. Is there a company out there which offers a fair deal?? My boat is very dear to me and I would gladly pay a little more for decent insurance. The experience and the loss of a couple of months’ sailing are quite bad enough without the added trauma of such a miserly and unsympathetic insurance company.

 

[PGD]

Hi, I sympathise greatly with your plight. My little 24 foot Fairline suffered frost damage to her V6. Nav and Gen specifically note frost damage as an insured peril. Have I got a pay out in the last three months – NOT, plus no boating until last weekend. They say I haven’t followed manufacturers recommendations – well get this, Volvo Penta don’t acknowledge rivers in their publications, only sea boats and sea water winterisation. Hence if I followed their info I’d have Zinc anodes not Magnesium for the river and have no engine and drive left. Bet they won’t pay out on that !!!

It’s all a bunch of pants every policy is out to catch you out for what is likely to happen, hence they don’t pay out.

I went looking for a better policy and found only crap ones.

I now have very little faith in these companies as they now won’t increase the value of my boat as I’ve converted from petrol to diesel with a whole new set up that cost me 15K. I don’t expect the total cost back but brokerage show figures of at least the value of the new engine – some 7.5K as an increase.

Anyway enough of my troubles, and many more like me, if you read the posts, good luck, don’t give in and try the insurance ombudsman if all else fails. You’ll find that mentioning these word will “focus the mind a little” as they realise you mean business.

Regards

Peter

 

[bob_tyler]

I'm afraid that this is a well known insurance scam known as "averageing". It also can apply to your house, contents, car and any other policy. See if you can try the Insurance Ombudsman. I don't know if your policy is covered by this scheme but it's worth trying.

 

[ccscott49]

Pantaenius, always very good. I feel for you. Colin.

 

[Bergman]

Its not just marine insurance.

Go to any city in the UK and look for the most imposing/expensive building. It will be an Insurance company.

Now you know how they do it.

I was burgled a few years ago, won't bore you with the details but I ended up wanting to murder my insurer and especially the Loss Adjuster rather more than I wanted to murder the burglers.

Best of luck with the claim, try to make as much noise as possible as publically as possible. Buying insurance is buying trust and anything that calls that trust into question is bad for business.

 

[Chris_Robb]

Market Value is NOT the value you should use

The Pantaneous contract has a new for old clause, however on Masts, over 10 years old there is a 25% reduction.

Value of Boats for insurance purposes should NOT be the market value but the fair value given that masts etc can be expensive to replace. It is understandable that an insurance company - receiving premiums on a value of say £7,000 suddenly finds that they should have been receiving premiums, based on the replacement value of the mast, etc of £14,000.

How can you expect them to pay out on a claim like this? Its up to us to insure with proper values. Averaging and betterment are well known principles in insurance, and we should take them into account when we take up insurance.

If you are using an agent, he should ensure thjat you are aware of this, and with the example of a replacement mast, should look for a contract which at least attempts to give you some of the benefits of new for old.

Pantaenious - I beleive is the only one that does, All the rest you will be charged betterment, and average if the value of the boat does not reflect the cost of a new mast.

No - I am not in the insurance industry - I learned from an earlier mistake!

 

[TonyMS]

We lost our mast on a Saturday morning off Clacton. Someone called the lifeboat, so we stopped playing at jury rigs and accepted a tow to Clacton. Called our insurers, Pantaenius. Surveyor arrived at teatime. Had go ahead to replace on Monday. Sailing again 2 weeks later. Pantaenius paid mast supplier direct. All done with courtesy and no need to argue.

 

[duncan]

Seems to me that experience suggests so far that if it is clear what needs to be done it gets done quick and everyone is happy - but if there is more than one solution...........

everyone agree?

 

[Footpad]

Why is it that when we insure the company asks us the value and will offer no suggestions whatsoever, but when we claim they tell us exactly what the article is worth and its usually a lot less than the sum they have been accepting a premium on!

 

[Guest]

My insurers wouldn't accept an increase on value when I had to install a new engine. They will only pay market value not withstanding the replacement cost I am willing to insure for. To me marine insurance stinks as being very outdated and one sided in who benefits from the way it works. The current buying a boat supplement in Yachting Monthly fails to warn new owners of the problems with marine insurance and with out knowing insurers are likely, as I did, to think the near universal new for old works here as well, to their cost is needing a claim. Bit to find even if you pay or are willing to pay, for the current replacement cost of the boat or its component parts all they will pay is what they think is the current market value of other boats not yours stinks.