Insurance coverage for stolen parts...Opinions/experience needed.

[thisistank]

A friend of mine has his boat at a yard in Southern Ca. for sale. The boat is brokered to the yard and the yard will get 10% if sold. Normal deal right? Ok, heres the problem:

Both of his drives got stolen last week while the boat was sitting in their yard. His insurance Co. at first says no problem to cover the drives but then comes back and says, "Wait, theres a clause in your policy that says nothing will be covered if at a broker yard". What's up with that!? And this is a well known insurance company!

So my question is this. Shouldn't the boat yard be responsible for the loss just like if you took your car to a dealer and put it on consignment, they would be responsible if something happened?

In the broker paper work for the boat they do not cover insurance coverage at all. Which is a good thing in a way because it doesn't say they are not responsible. Opens them up to liability in my eyes.

I see this turning into a Cival issue rapidly and they are going to have to be sued for the loss. But in the mean time my buddies stuck with the bill for two new Bravos.

Just thought this little piece of info could be helpful to anyone leaving their boat at a broker. You might want to check your policy first.

[waterbum]

I went through the same thing about 7 years ago. My drives and other parts were stolen while under the care of a 3rd party. Luckily for me my father was in insurance for 30 years and helped me weave through the maze of BS. I initially got the same answer as your friend. I got 3 denial letters before they finally agreed to pay for my loss.

2 phases needed to be repeated in all written correspondance.
1. I suffered a loss of an insured item
2. I expect my insurance company to act in Good Faith. (Do a search on "Good Faith" and you will see it is legal term in the insurance industry).

Get a copy of the police report (this proves a loss occured). If no police report was filed by the broker, your friend needs to report the theft ASAP.

It may take a while, but your friend should be compensated for his loss. As long as premiums were up to date and proof of a loss exists (police report), the Insurance company must act in "Good Faith".

Good Luck,
Doug

[thisistank]

Thanks Doug, I'll pass the info along.

F*cking insurance companies! Always want to take your money but never want to pay out when it's time!

[offshoredrillin]

It does suck, but did he have drive locks on them, my policy from Sy speciffically states that they wont pay if I dont try to prevent it. Little late now but an ounce of prevention is worth a pound of cure.