Cruisers Forum
 


Join CruisersForum Today

Reply
 
Thread Tools Rate Thread Display Modes
Old 07-04-2014, 00:36   #1
Marine Service Provider
 
SV THIRD DAY's Avatar

Cruisers Forum Supporter

Join Date: Aug 2006
Location: La Paz, Mexico
Boat: 1978 Hudson Force 50 Ketch
Posts: 3,653
Does Insurance Pay Out if you Bail Out?

The sad news about Rebel Heart got me thinking about insurance, so out of the chart table came my policy to reveiw but I still can't find the answer. So maybe someone here can answer.

If you abandon ship, like in the case of Rebel Heart, will the insurance pay for that loss or will they say, "hey you abandoned the boat" and deny your claim.

I realize that money and making an insurance claim isn't on your mind when in this situation, but does anyone know how this would play out? I just have a bad feeling that it would be pretty hard to collect if you abandoned a ship that was floating and not sinking.

Thoughts?
__________________

__________________
Rich Boren Goodbye Morro Bay...Hello La Paz, Mexico and the owner of:
Cruise RO Water High Output Water
Technautic CoolBlue Refrigeration
SV THIRD DAY is offline   Reply With Quote
Old 07-04-2014, 00:42   #2
Registered User

Join Date: Sep 2012
Posts: 202
Re: Does Insurance Pay Out if you Bail Out?

I'm quite curious to hear thoughts on this as well, but I fear the only true answer is depends on the policy...

Looking forward to hearing from those who know (hopefully who don't know from personal experience though!)

__________________

__________________
Sondor is offline   Reply With Quote
Old 07-04-2014, 00:48   #3
Registered User

Join Date: Nov 2010
Posts: 830
Images: 27
Re: Does Insurance Pay Out if you Bail Out?

A policy wouldn't be much good to you if you couldn't bail out, otherwise you'd be sinking with the ship!

Depends.... bailing out when there's nothing wrong and you are seasick... well no.

Bailing out because you've lost power and can't steer... sure... then they (the insurance company) would then have to hedge their bets on a successful recovery, otherwise you're talking payout for total loss which usually has a timeframe on it in case it's located.
__________________
ausaviator is offline   Reply With Quote
Old 07-04-2014, 01:29   #4
Registered User
 
svBeBe's Avatar

Join Date: Sep 2008
Location: from Houston, TX; currently berthed in Barcelona, headed west
Boat: Amel SM 53 - BeBe
Posts: 946
Re: Does Insurance Pay Out if you Bail Out?

Quote:
Originally Posted by SV THIRD DAY View Post
The sad news about Rebel Heart got me thinking about insurance, so out of the chart table came my policy to reveiw but I still can't find the answer. So maybe someone here can answer.

If you abandon ship, like in the case of Rebel Heart, will the insurance pay for that loss or will they say, "hey you abandoned the boat" and deny your claim.

I realize that money and making an insurance claim isn't on your mind when in this situation, but does anyone know how this would play out? I just have a bad feeling that it would be pretty hard to collect if you abandoned a ship that was floating and not sinking.
Search your policy for "watch standing" and "crew limitations or minimums." Then search for the all-encompassing word, "negligence."

I think you will figure out your answer...which may be different for different policies.

I also do not personally know of an insurance company that will insure a 30 year old sailboat, but there may be.

Bill
__________________
svBeBe is offline   Reply With Quote
Old 07-04-2014, 01:50   #5
Marine Service Provider
 
SV THIRD DAY's Avatar

Cruisers Forum Supporter

Join Date: Aug 2006
Location: La Paz, Mexico
Boat: 1978 Hudson Force 50 Ketch
Posts: 3,653
Re: Does Insurance Pay Out if you Bail Out?

Quote:
Originally Posted by svBeBe View Post
I also do not personally know of an insurance company that will insure a 30 year old sailboat, but there may be.
IMS does...easy pleasy...
__________________
Rich Boren Goodbye Morro Bay...Hello La Paz, Mexico and the owner of:
Cruise RO Water High Output Water
Technautic CoolBlue Refrigeration
SV THIRD DAY is offline   Reply With Quote
Old 07-04-2014, 05:22   #6
cruiser

Join Date: Dec 2013
Posts: 398
Re: Does Insurance Pay Out if you Bail Out?

Given what we know about insurance company's it would seem that even know they say they will pay its no guarantee the the check will be easily obtained or for a acceptable value. For every "my insurance paid out well" story it's easy to find several unhappy customers.
__________________
Horror Hotel is offline   Reply With Quote
Old 07-04-2014, 07:27   #7
Nearly an old salt
 
goboatingnow's Avatar

Cruisers Forum Supporter

Join Date: Jun 2009
Posts: 13,649
Images: 3
Re: Does Insurance Pay Out if you Bail Out?

Quote:
Originally Posted by svBeBe View Post
Search your policy for "watch standing" and "crew limitations or minimums." Then search for the all-encompassing word, "negligence."



I think you will figure out your answer...which may be different for different policies.



I also do not personally know of an insurance company that will insure a 30 year old sailboat, but there may be.



Bill

No problem with insuring a 30 year old boat here. You'll need a survey , but that's about it.

Dave
__________________
Check out my new blog on smart boat technology, networking and gadgets for the connected sailor! - http://smartboats.tumblr.com
goboatingnow is offline   Reply With Quote
Old 07-04-2014, 07:32   #8
One of Those
 
Canibul's Avatar

Cruisers Forum Supporter

Join Date: Sep 2006
Location: Turks and Caicos Islands
Boat: Catalac 12M
Posts: 3,209
Re: Does Insurance Pay Out if you Bail Out?

Getting insured for a 30 year old boat doesn't see to be much of a problem. Getting a valid claim paid is starting to make me nervous. Still waiting almost two years after a lightning strike here....
__________________
Expat life in the Devil's Triangle:
http://2gringos.blogspot.com/
Canibul is offline   Reply With Quote
Old 07-04-2014, 07:51   #9
Registered User
 
denverd0n's Avatar

Join Date: Jun 2008
Location: Tampa, FL
Posts: 3,951
Images: 6
Re: Does Insurance Pay Out if you Bail Out?

I suspect that if the boat was actually sinking then they would probably pay. In the case of Rebel Heart I suspect that they are going to say that the only thing wrong with the boat was the steering, and they would have gladly paid to fix that if only the boat had been towed into a port. Since it wasn't, too bad for you...

Of course, that's just a guess. It would be interesting to hear from someone who actually abandoned their boat under similar circumstances (that is, no danger of sinking) and then filed a claim.
__________________
denverd0n is offline   Reply With Quote
Old 07-04-2014, 08:15   #10
Senior Cruiser
 
colemj's Avatar

Cruisers Forum Supporter

Join Date: Oct 2005
Location: Presently on US East Coast
Boat: Manta 40 "Reach"
Posts: 10,049
Images: 12
Re: Does Insurance Pay Out if you Bail Out?

There is that Alpha 42 out there still floating around with no steerage. Don't know the insurance outcome on that, but it is the perfect test case.

Mark
__________________
www.svreach.com

You do not need a parachute to skydive. You only need a parachute to skydive twice.
colemj is offline   Reply With Quote
Old 07-04-2014, 09:11   #11
CF Adviser
Moderator Emeritus
 
Hud3's Avatar

Cruisers Forum Supporter

Join Date: Sep 2007
Location: Virginia
Boat: Island Packet 380, now sold
Posts: 8,929
Images: 49
Re: Does Insurance Pay Out if you Bail Out?

Quote:
Originally Posted by SV THIRD DAY View Post
The sad news about Rebel Heart got me thinking about insurance, so out of the chart table came my policy to reveiw but I still can't find the answer. So maybe someone here can answer.

If you abandon ship, like in the case of Rebel Heart, will the insurance pay for that loss or will they say, "hey you abandoned the boat" and deny your claim...
No matter what opinions you read here, you won't really know the answer until you ask you insurance broker directly, or even better get the broker to ask the underwriter for a written response.
__________________
Hud
Hud3 is offline   Reply With Quote
Old 07-04-2014, 11:59   #12
Registered User
 
dennisjay's Avatar

Join Date: Feb 2008
Location: Annapolis, Md.
Boat: Island Packet 380 - Delta Blues
Posts: 346
Images: 1
Re: Does Insurance Pay Out if you Bail Out?

Keep in mind the reason this boat was scuttled. Left afloat it would have become a navigational hazard. If it caused a collision at sea, the insurance company likely would still have been liable for damages, even if the crew abandoned the vessel. Hence, it may be in the insurer’s best interest that the boat was sunk, and they would be willing to cover the loss.

But like any other insurance loss, it depends on policy coverage and the circumstances of the loss.
__________________
- Dennis Jay
Annapolis, MD USA

http://sailingdeltablues.com/
dennisjay is offline   Reply With Quote
Old 07-04-2014, 12:00   #13
Senior Cruiser
 
roverhi's Avatar

Cruisers Forum Supporter

Join Date: Aug 2005
Location: Kona, Hawaii, Carlsbad, CA
Boat: 1969 Pearson 35 #108 & 1976 Sabre 28
Posts: 6,003
Send a message via Yahoo to roverhi
Re: Does Insurance Pay Out if you Bail Out?

You probably won't know till you get a check in hand. A lot of abandonments are for the convenience of captain/crew on a boat that may have some mechanical failure but could have reached a location where it could be saved if they'd stayed aboard. Insurance may have a big impetus in abandoning a boat.

The problem is determining what is a compelling to abandon a boat. Remember the boat that lost steerage on a trans Atlantic. They essentially sailed in circles working their way slowly west for several weeks. They only threw in the towel when threatened by an approaching hurricane.

Markel insures my 43 year old boat. Problem is getting passage insurance to sail solo beyond relatively restrictive defined geographic limits. Passage insurance is not cheap and comes with a host of restrictions. It's a bit of a conundrum that you can get relatively cheap insurance for coastal sailing which is way more dangerous in my mind than open ocean sailing
__________________
Peter O.
'Ae'a Pearson 35
roverhi is offline   Reply With Quote
Old 07-04-2014, 14:30   #14
Marine Service Provider

Join Date: May 2012
Location: New Orleans
Boat: We have a problem... A serious addiction issue.
Posts: 3,940
Re: Does Insurance Pay Out if you Bail Out?

To be clear, I haven't read your policy, and am not making a legal opinion about your situation. And no attorney-client relationship is created by the following, for either the original poster, or anyone who might read the following.

Marine insurance policies as a rule do cover an abandond boat, so long as it was abandoned due to a hazard of the sea. So if you get violently seasick and have to be air lifted then yes you are covered. Or need medical attention then yes, or if a major system of the boat breaks down and you must be evacuated then yes.

If you leave it on the hook for two years without checking on the boat and it breaks free of the mooring, probably not.

As a rule of thumb, if you are abandon due to an emergency, then you have coverage. If you abandon the boat because you don't want it anymore then no.
__________________
Greg

- If animals weren't meant to be eaten then they wouldn't be made of food.
Stumble is offline   Reply With Quote
Old 07-04-2014, 20:26   #15
Registered User
 
Orion Jim's Avatar

Join Date: Dec 2008
Location: Noank, Ct. USA
Boat: Cape Dory 31
Posts: 1,075
Images: 6
Re: Does Insurance Pay Out if you Bail Out?

I have a 30 year old boat, I'm 58 years young, and I single hand 99% of the time. I have coastal insurance coverage and when I go offshore I'm on my own, no insurance at all. Oh well, that just keeps me on my toes. I do have a life raft and an EPIRB so I've got my own personal insurance.
__________________

__________________
Orion Jim is offline   Reply With Quote
Reply

Tags
insurance

Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Securing electronics with DIY secure bail mounts Joe from ny Marine Electronics 5 04-10-2013 12:47
boom bail sought Srah 1953 Deck hardware: Rigging, Sails & Hoisting 5 09-06-2012 06:02
Masthead Crane / Spinnaker Bail LIsailor Deck hardware: Rigging, Sails & Hoisting 13 14-02-2012 12:24
How Much Did You Pay, or Are Willing to Pay, for Your Cruising Vessel ? sailorboy1 Dollars & Cents 44 13-04-2010 07:48
March 7th - Making Bail, Equipment Failure and other fish stories skipgundlach General Sailing Forum 5 11-05-2008 17:10



Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 08:44.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.