Boat motor insurance advice request

I have a 2001 70HP 4-stroke Evenrude Tiller motor that had it’s lower unit go out last fall. My insurance company has finally decided it is covered by my policy, and have told me it is going to be a Total Loss. The estimate for repair was for just over $4000, and I have $6000 of coverage with a $250 deductable.

I suspect they are going to offer me less than $4000 to replace the motor since they are calling it a “Total Loss”. I know in the case of auto insurance in MN, if they determine a car to be a “Total Loss”, the insured has the option of having the insurance company either pay the “Total Loss” amount they come up with, OR replacing the car with a car that is comparable or better than the car that was totaled. Does anyone know if there is a similar law/rule in the case of a boat motor?

If not, can anyone give me advice how best to handle the insurance company should they offer me less to replace the motor than it would cost to repair.

Also, does anyone have a recommendation on where I can find a 70HP or 80HP motor to replace the one with the bad lower unit, or how much I would need to spend on one? A used on in the 10-year old range is probably more in my price range.

Thanks for any help!

I’m not sure specific to a boat motor, but in general the following will apply to a claim: It will depend on whether your policy had/has “Replacement Cost” Coverage or “Actual Cash Value” (aka depreciated) coverage. Regardless of what option you have, if you receive what you deem a low offer, I would ask them to send you the comps for where they derived that value. If what they send you doesn’t seem like accurate comps you will want to get some of your own to dispute the amount. If you have your coverage thru a local agent, and not a broker, they should be able to assist you in any potential dispute. Hope that helps, and feel free to PM me with any add’tl or more specific questions.

Lower units arn’t that expensive Look here

http://www.marineengine.com/parts/johnson-evinrude-parts.php?year=2001&hp=70&model=BJ70PLSIS

Stan

These guys have been good to deal with too.

http://www.boatmotors.com/motorparts/index.cgi?flag=1&engine_type=outboard&part=102&manufacturer=5&year=2001

Stan

Every insurance carrier is going to adjust a marine insurance claim a little differently so it’s difficult to offer a lot of advice without knowing specifically what company your insured with and what you are currently carrying for coverages. Not to mention the claims process when it comes to outboards can get tricky when you factor in certain clauses in some insurance policies regarding the adjustment of claims based on aftermarket or remanufactured parts.

If you’d like, feel free to shoot me a PM with some more info and id be happy to help you out. I work with a lot of the major marine insurance carriers so I should be able to offer some insight about their particular claims adjustment processes.

Two thumbs up for Justin. I’ve been with him for a good long time. He’s been just as fast when I’ve had a (1) claim as he is sending my premium notice!

Now that I think about it, faster!

BigWerm wrote:

I’m not sure specific to a boat motor, but in general the following will apply to a claim: It will depend on whether your policy had/has “Replacement Cost” Coverage or “Actual Cash Value” (aka depreciated) coverage. Regardless of what option you have, if you receive what you deem a low offer, I would ask them to send you the comps for where they derived that value. If what they send you doesn’t seem like accurate comps you will want to get some of your own to dispute the amount. If you have your coverage thru a local agent, and not a broker, they should be able to assist you in any potential dispute. Hope that helps, and feel free to PM me with any add’tl or more specific questions.

Most marine policies are written as 1. Stated Amount 2. Actual Cash Value 3. Total Replacement cost (generally only available for the first 2-3 years after the model year of boat). I doubt the company will give you full replacement cost for your 01 70hp Evinrude.

If not specified otherwise in the policy, you can expect the Actual Cash Value of the motor at the time of loss. This is based on the amount that it would reasonably cost to replace the damaged motor with a similar motor of age, value, performance, and value.

Let us know how you come out.

Joel VandeKrol wrote:

If not specified otherwise in the policy, you can expect the Actual Cash Value of the motor at the time of loss. This is based on the amount that it would reasonably cost to replace the damaged motor with a similar motor of age, value, performance, and value.

This is why it’s important to provide the claims adjuster with comparable outboards in order to help assist him with his valuation of your motor. NADA values do not take into consideration real world economics such as Supply and Demand, therefore NADA consistently undervalues used boats.

Also, as mentioned before, make sure you get your agent involved if things go sour between yourself and the claims adjuster. An agent who has an existing relationship with the claims adjuster be a very valuable asset in your corner.