Thought I would share my experience over the past year on boat insurance, hoping it would avoid others the same pitfalls. I am not exaggerating this story. I'm telling this exactly the way it has happened.
I bought a policy with a well-known insurance company about 5-8 years ago as they were the cheapest I could find and did not require a survey, and they were recommended by a friend. However, we had a major storm on Lake Michigan last fall with 68-70 mph winds and 18-23' seas over a 6 hr period with continued 35-40 mph winds all the next day. Waves are reported to have been going easily over the pier head and going up the river. Due to surge at our marina, a number of boats at our marina were damaged including mine, as well as the dock and seawall. What I learned was that I had a policy that only paid for replacing parts on depreciated value with discounted reimbursement at 1 percent per year. Since my T37 is an '81, (30 years old), they paid only 70 percent of the replacement cost of every part that needed to be replaced. Labor was paid 100 percent. But I also found that I had no property damage clause in my policy and the insurance company will not cover the damage my boat did to the dock and seawall saying it was "Act of God". We've checked with 3 other insurance agents who said their companies do not recognize "Act of God" as a reason to avoid reimbursement. As a result, the owner of the condo dock that I rented is now taking me to court. I do have sufficient liability coverage and while my insurance company is providing an attorney, I have been under tremendous stress over the past year being caught in the middle of all of this.
I learned that the cheapest insurance policy is not always the best, even if it is a well-known company that is on TV ads on a regular basis. However, regardless of the company, make sure to read the fine print and know what your insurance policy will cover should you need it.
_________________ Mark Celtic Lady, Hull #315 Muskegon, MI
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