Does Insurance Pay Out if you Bail Out?

[SV THIRD DAY]

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?

[Sondor]

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!)

[ausaviator]

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.

[svBeBe]

Originally Posted by SV THIRD DAY

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

[SV THIRD DAY]

Originally Posted by svBeBe

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...

[Horror Hotel]

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.

[goboatingnow]

Originally Posted by svBeBe

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

[Canibul]

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....

[denverd0n]

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.

[colemj]

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

[Hud3]

Originally Posted by SV THIRD DAY

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.

[dennisjay]

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.

[roverhi]

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

[Stumble]

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.

[Orion Jim]

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.