I am trying to find out if this is how it works?
We recently experienced some fairly sever damage on one of our boats from a lightening strike. After most of the estimates were in we found that the total cost of repair would significantly exceed our insurance
deductible and so we contacted our insurance
agent and requested guidance on how to proceed to make a claim.
This is where it started to get weird.
The long and short of it is, we were told to order whatever repairs
we needed and to send a receipt showing that we had paid up through our deductible. After that the adjuster said to go ahead and continue to pay for repairs
and that our insurers would then reimburse our expenditures for the post-deductible amount.
This seems very strange to me. I have had to make a few auto-insurance claims in my life. But I have never had to make a marine
insurance claim. It seems strange to me that we have to pay out of our own pocket first and then find out later if our insurance company will really fulfill their obligation to cover those expenses.
We maxed out our American Express card on the deductible. We had to order a new credit card to pay in advance for the next 1/3 of repairs and we will run that card close to dry in the process. We are not sure yet how to pay in advance for the final 1/3 of the necessary repairs.
Is this procedure normal? Does marine
insurance operate by having the customer pay up first and then reimburse them?