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16-07-2019, 10:21
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#1
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Registered User
Join Date: Feb 2014
Posts: 195
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Insurance claim and non renewal
I am about to file a claim with Geico (Boat US). I was just told to be careful. In their case, the claim was denied and than when renewal came around, they would not renew their policy. To be fair...the denying company was not Geico. I didn't expect to hear this.
Anyone have a similar case?? BTW...marine surveyor has not been here yet so I could cancel my claim.
Regards,
G
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16-07-2019, 10:49
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#2
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Registered User
Join Date: Oct 2007
Location: Lakewood Ranch, FLORIDA
Boat: Alden 50, Sarasota, Florida
Posts: 3,464
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Re: Insurance claim and non renewal
Lots of claims are denied by lots of underwriters and some either refuse to insure or jack up their rate. Some don’t... any anecdotal info you hear or read isn’t an indicator of your circumstance.
If it is a frivolous claim, underwriters share that information in the subtext of their ratings.
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16-07-2019, 11:14
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#3
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Registered User
Join Date: Feb 2014
Posts: 195
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Re: Insurance claim and non renewal
Quote:
Originally Posted by S/V Illusion
Lots of claims are denied by lots of underwriters and some either refuse to insure or jack up their rate. Some don’t... any anecdotal info you hear or read isn’t an indicator of your circumstance.
If it is a frivolous claim, underwriters share that information in the subtext of their ratings.
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Thanks! Frivolous claims are than figured in your rating of the insured for renewal? Sadly, they are not considering first claim in 40 years of paying premiums. My question, albeit hypothetical, is there a history/practice by insurers of non renewal for a claim whether it was denied or paid?
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16-07-2019, 11:46
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#4
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Registered User
Join Date: Aug 2010
Posts: 3,074
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Re: Insurance claim and non renewal
I've submitted claims twice in the past 12 years (10 years ago and 8 years ago) to two different companies. Both times the claims paid out. I was dropped at renewal time both times.
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16-07-2019, 11:53
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#5
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Registered User
Join Date: Feb 2014
Posts: 195
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Re: Insurance claim and non renewal
Can I say "oh ****!"? What a racket!! Well....perhaps others may have opinions. Anybody?
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16-07-2019, 12:28
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#6
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Registered User
Join Date: May 2016
Location: Palmetto, FL
Boat: "Wanderlust" -- 1999 Jefferson Rivanna 52'
Posts: 874
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Re: Insurance claim and non renewal
Quote:
Originally Posted by glcalahan
My question, albeit hypothetical, is there a history/practice by insurers of non renewal for a claim whether it was denied or paid?
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There will always be anecdotes about non-renewals. Often the people telling the story will relate it to the submission of a claim. Quite often, it's not the whole story and may not even be related.
When an insurance company receives a claim, and during routine annual reviews, they examine the policy info and circumstances to see if it is still a good fit for their desired book of business. In short, they want to know if their exposure to potentially high payout is an acceptable risk.
Implementing a blanket policy to cancel anyone who otherwise met the criteria for their book of business but submitted a claim, whether it is paid or denied, would open the company up to litigation and complaints to that state's insurance commissioner. I'm not saying it hasn't happened but reputable companies don't do that if they don't want to be shut down.
Anytime someone starts talking about getting cancelled because they submitted a claim and the claim was denied, it leads me to believe the company examined the policy and determined they never should have accepted the risk, to begin with. There was probably something in the policy that turned out to be in error... maybe the company read the surveyor's report and discovered there was prior damage that was previously undisclosed and they never would have taken on the policy if they had known... or maybe the policyholder lied about residency or dockage in order to get a better rate... or maybe the policy called for specific storm preparation steps that were not taken... lots of reasons. Usually the person telling the story about being cancelled doesn't mention that part or never knew about it.
Just John's thoughts. Other opinions will vary and a percentage will want to flame me. Fire retardant undies are on; let 'er rip.
John
__________________
John and Deb Easley
John - USCG 50 ton Master
1999 Jefferson Rivanna 52' CPMY
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16-07-2019, 12:29
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#7
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Registered User
Join Date: May 2016
Location: Palmetto, FL
Boat: "Wanderlust" -- 1999 Jefferson Rivanna 52'
Posts: 874
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Re: Insurance claim and non renewal
Quote:
Originally Posted by Shrew
I've submitted claims twice in the past 12 years (10 years ago and 8 years ago) to two different companies. Both times the claims paid out. I was dropped at renewal time both times.
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Yup. That's what I was saying. Happened to us on our homeowner's policy, too.
John
__________________
John and Deb Easley
John - USCG 50 ton Master
1999 Jefferson Rivanna 52' CPMY
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16-07-2019, 12:35
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#8
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Registered User
Join Date: Aug 2010
Posts: 3,074
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Re: Insurance claim and non renewal
Quote:
Originally Posted by MV Wanderlust
There will always be anecdotes about non-renewals. Often the people telling the story will relate it to the submission of a claim.
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Technically, I never made a correlation. I simply stated MY historical experience. So far 100% of the years which I did not submit a claim I was renewed. And 100% of the years which I did submit a claim, I was not renewed.
Just simple math. I would warn anyone to avoid making statistical correlations without a larger data sample.
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16-07-2019, 15:07
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#9
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Registered User
Join Date: Feb 2014
Posts: 195
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Re: Insurance claim and non renewal
Quote:
Originally Posted by MV Wanderlust
There will always be anecdotes about non-renewals. Often the people telling the story will relate it to the submission of a claim. Quite often, it's not the whole story and may not even be related.
When an insurance company receives a claim, and during routine annual reviews, they examine the policy info and circumstances to see if it is still a good fit for their desired book of business. In short, they want to know if their exposure to potentially high payout is an acceptable risk.
Implementing a blanket policy to cancel anyone who otherwise met the criteria for their book of business but submitted a claim, whether it is paid or denied, would open the company up to litigation and complaints to that state's insurance commissioner. I'm not saying it hasn't happened but reputable companies don't do that if they don't want to be shut down.
Anytime someone starts talking about getting cancelled because they submitted a claim and the claim was denied, it leads me to believe the company examined the policy and determined they never should have accepted the risk, to begin with. There was probably something in the policy that turned out to be in error... maybe the company read the surveyor's report and discovered there was prior damage that was previously undisclosed and they never would have taken on the policy if they had known... or maybe the policyholder lied about residency or dockage in order to get a better rate... or maybe the policy called for specific storm preparation steps that were not taken... lots of reasons. Usually the person telling the story about being cancelled doesn't mention that part or never knew about it.
Just John's thoughts. Other opinions will vary and a percentage will want to flame me. Fire retardant undies are on; let 'er rip.
John
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Great answer!* Thank you!* As I posted, I have been sailing since the mid '70's and never filed a claim.* I am rebuilding a 49 yr classic and dont want end up looking for insurance and to do a haul out and survey!
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16-07-2019, 15:12
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#10
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Registered User
Join Date: May 2016
Location: Palmetto, FL
Boat: "Wanderlust" -- 1999 Jefferson Rivanna 52'
Posts: 874
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Re: Insurance claim and non renewal
Quote:
Originally Posted by glcalahan
Great answer!* Thank you!* As I posted, I have been sailing since the mid '70's and never filed a claim.* I am rebuilding a 49 yr classic and dont want end up looking for insurance and to do a haul out and survey!
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Not to be a downer but there probably isn't a reputable insurance company that will insure a 49 year old boat without a haul out and survey. Sorry. Let us know how it goes, though.
John
__________________
John and Deb Easley
John - USCG 50 ton Master
1999 Jefferson Rivanna 52' CPMY
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16-07-2019, 15:17
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#11
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Registered User
Join Date: Feb 2014
Posts: 195
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Re: Insurance claim and non renewal
Well.....I am already insured. As I mentioned, I really am not keen on the idea of paying for a haul out paying for another survey for a new insurance company.
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16-07-2019, 15:18
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#12
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Registered User
Join Date: May 2016
Location: Palmetto, FL
Boat: "Wanderlust" -- 1999 Jefferson Rivanna 52'
Posts: 874
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Re: Insurance claim and non renewal
Then you should be good to go.
__________________
John and Deb Easley
John - USCG 50 ton Master
1999 Jefferson Rivanna 52' CPMY
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17-07-2019, 09:10
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#13
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Registered User
Join Date: Jul 2017
Location: Chemainus BC
Boat: Camano 41
Posts: 286
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Re: Insurance claim and non renewal
So I hit the log that ate New York last spring, did both props and 1 shaft. Straightened it all out, went back in the water and within 30 minutes blew a tranny. Called the insurer, they sent out a surveyor, had a mechanic view the damage and circumstances and they covered it all. Complete rebuild on the transmission. About $13K. Same insurer this year standard premium increase (for everyone) and away we go. My hunch is if you go cheap you get cheap. Insurance is for catastrophies.
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17-07-2019, 09:30
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#14
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Registered User
Join Date: Mar 2015
Location: Boston's North Shore
Boat: Pearson 10M
Posts: 839
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Re: Insurance claim and non renewal
More than 20 years ago I filed a claim with BostUS insurance, which they paid. I'm still with BoatUS.
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17-07-2019, 09:39
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#15
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Registered User
Join Date: Feb 2018
Location: San Diego
Boat: '77 CAL33
Posts: 39
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Re: Insurance claim and non renewal
had an ericson32 burn [kerosene stove malfunction] and sink in canadian waters last year. home port was bellingham wa. boatus/gico insurance covered claim. replaced boat with cal34 and boatus/gico insured. home owners covered contents. 1st boat insurance claim in last 30 years of boating. i'm a boatus/gico fan.. easy claim of course..
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