[Rhodes22-list] Boat Insurance Question

[Bud]

I went with State Farm.  They asked how much I paid for the boat, then 
they asked how much would I like to
insure the boat for.  I told them it was worth a lot more and 
subsequently insured it for what I thought it was
actually worth.

-Bud

mputnam1 at aol.com wrote:

>State Farm has told me that they insure the purchase price, not the blue book.  Now the only outstanding issue is that my broker is hoping to avoid having to get a boat survey.  She's hoping the one-pager that Stan sent me about recycling will suffice, although it would be best if Stan could generate a document that says specifically what he does to recycle a boat, or even better, what he did to my boat in particular.  But of course, I realize that's not going to happen ... with Stan feeling under the weather at his busiest time, I know better than to ask for that.  But it will be interesting to see if the insurance company is satisfied with Stan's broad view description of what "recycling" means.  He says he's had success before when sending such a document ... but I know not to expect much from insurance companies.  
> 
>- Mark Putnam 
> 
>-----Original Message-----
>From: Richard Smith <sailnut at att.net>
>To: The Rhodes 22 mail list <rhodes22-list at rhodes22.org>
>Sent: Tue, 4 Apr 2006 15:16:12 -0400
>Subject: Re: [Rhodes22-list] Boat Insurance Question
>
>
>On the ACV issue.
>
>Please remember that in general the market for older, smaller, used
>sailboats is very much a buyers market. A few years ago I had to sell a
>beautiful Albin 28 foot diesel cruiser for $6,500 and only got that after a
>six month wait!!  The boat had a lot of exposure because it was brokered
>from a Brewers Yard in Connecticut.
>
>The only small sailboats which are in demand are the high end luxury charter
>boats built by boutique builders and (locally) established racing class
>boats like the Marshall Cats and Pearson Ensigns.
>
> Can you imagine the powerful urge to get out of a financial drain that an
>isolated seller feels after fruitlessly trying to sell for months?  Better
>to simply total the boat (one way or the other) and collect the declared
>value from the insurer.
>
>In my opinion GB's policy of brokering/buying back their product is a deal
>maker.  No other manufacturer offers anything like this.  However since
>Stan's business model is so unique none of the marine insurance agents or
>direct writing carriers are aware of it.
>
>Because of that they have to restrict their exposure to whats published in
>the Blue Book.
>
>Richard Smith
>
>PS:  I run the claim department for a small auto insurer.  What I write here
>sets forth the general reality of the insurance causality business.
>
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>
>  
>