“Total loss”

[warrenthames]

My sailboat was recently struck by lightning. After the inspection by the insurance co., my mechanic sent in an estimate for repair. I am told that my claim is in the “total loss” department and that I will be given some options in a few days. The hull and deck are sound and not damaged but all of my electronics and both engines are damaged. Is anyone familiar with the process in a “total loss?” What are the usual options offered by the insurance company? I have never had a claim before and don’t know the process. Thanks for advice .

[S/V Illusion]

Generally, you will receive payment for the value of the boat. Your options are threefold:

to 1. refuse payment or 2. accept it, in the latter case you walk away and the underwriter owns it and it’s contents, or

3. You accept payment which effectively transfers ownership to the underwriter with whom you could attempt to buy back the boat presumably at some reduced amount.

It may be possible to combine 2 and 3 in some cases.

[Capt Phil]

You are screwed! Just my opinion!!
Phil

[LittleWing77]

That was mean-spirited, Phil. I'm sure he's devastated enough about the loss of his boat.

LittleWing

[Tillsbury]

It might be time to think about getting your own valuation if you can, unless there's an agreed value. If they come up with a lower figure than you think is fair then you may need to produce your own figure from someone at least as qualified. But usually you agree a figure and the insurer writes you a cheque in return for the boat. You may be able to buy the boat back of you really want, but it will be difficult to insure in the future.

[Dulcesuenos]

You can sometimes buy back a boat at a greatly reduced price, I.e. if your loss value was 100k you may be able to get the boat for 10-20k and if you are handy enough. Do the work yourself. In most claims, professional marine labor will eat up half or more of the claim. If you do this work yourself you can still get another survey if all work was performed and still get insurance though it may cost a little more. Or self insure as you now have extra $$

[denverd0n]

Does the insurance company take ownership of the boat? We had a car that was "totaled" quite a few years back. The insurance company paid us the blue book value for it, but did not take ownership. We kept the car and got it fixed. Cost us about a thousand more than they had paid us, but we continued to use the car for almost eight years after that with no problems, so it worked out quite well for us.


Maybe it is different when boats get "totaled."

[Tetepare]

As said see if they will sell it back to you. The insurance company doesn’t want to deal with storage or resale. Then you use the money to refit and should have plenty left over.

If they don’t resell to you, go buy another boat.

If you are insured by BoatUS/ Geico you may have a shock in the payment depending on the age of the boat. See what they offer; you may need an attorney

[daletournier]

A total loss, was it a direct strike? How bad can it be. Electronics are expensive but surely not as expensive as a complete boat.

[RaymondR]

Originally Posted by daletournier

A total loss, was it a direct strike? How bad can it be. Electronics are expensive but surely not as expensive as a complete boat.

Exactly.

You need more extensive advice preferably from someone who really knows boats but without any skin in the game.