Allstate Insurance
 

I have a 25 ft nordic 1996 with 300 hrs on it and in very good condition . Last mo someone stole my lower unit i called my insurance co they told me 2 get a price 2 replace it. nordic gives me a price of over 7k my insurance co ALLSTATE sends me a check for 600.00 . they say my boat was old so they took 85 percent off the price.WHAT CAN I DO?

Call your agent. If you had the correct coverage :eureka: , it should have been replaced at no cost to you. I've got Allstate and they have been fantastic to work with. Under the repair cost option, Allstate has something called the premier boat option #1 which pays replacement of damaged parts. It's a very small cost per year.

First and foremost, I agree with OldSchool. Call your agent and ask them if you have that endorsement. My guess is based on what the adjuster has offered you is that you do not have anythiing on your declarations page under Coverage TT. It would show on there if you did.

As far as special endorsements like the repair cost option.
I don't know Allstate policies other than the basics nor do I claim to have read one cover to cover but I did find one of them online and have reviewed the loss settlement section. See attached for a copy of the policy form (fyi, this may or may not be the one associated with your particular policy)

Keep in mind that those repair cost option endorsements that you sometimes add to a policy do have stipulations in them. The option sometimes isn't even available to boats that are over 10 years of age.... at least that is how some of the carriers we represent are.... Allstate could be totally different, again, I don't sell their product as I am not a captive agent.

Anyways, here is what the Allstate policy reads word for word:

7. b) Repair Cost for Partial Losses
When the declarations page indicates the repair cost applies under Coverage TT - Your Property, we will pay the actual cost to repair or replace the covered property with material of like kind and quality, with no deduction for depreciation. This provision applies only to partial losses. Repairs or replacement of canvas materials and sails will be settled on an actual cash value basis at the time of the loss.

When repair or replacement is made, payment will not exceed the smallest of the following amounts:

1) the repair cost of the damaged property. We will not pay more than the cost to makes repairs in accordance with:

a) the maker's specifications; or

b) generally accepted shipyard repair practices

2) the amount actually and necessarily spent to repair or replace the damaged property; or
3) the limit of liability shown on the declarations page applicable to the damaged property.

It's all in the fine print........and most people shop price only reading it when they have a claim. My agent had to have gotten scared by all the crazy "what-if" questions I asked when they wrote my policy....but I have the exact coverage I want to have now.

I've had great service from Allstate over the years. I was involved in a really bad snowmobile accident and everything was taken care of without to many problems. I've also had a few other small claims over the years on my vehicles without any problems. Something doesn't sound right with your claim, I would contact your agent again.

I hate to be the "Debbie Downer" here. But if he doesn't have Coverage TT outlined on his declarations page then his payout (which includes the deductible deduction) is probably correct.

Adjusters use the "useful life" of a part that is put out by the mfg. So, for example, if Merc says their part has a useful life of 20 years the part is depreciated based on a 20 year useful life schedule. If the damaged part is 15 years old (like it is in this situation), then here is how the claim payout would work.

Let's say the cost to replace the part with a new part (2011) is $7,000. Because the company is only obligated per the Allstate policy form to pay for a part of like, kind and value then they technically only owe you a 15 year old part. They would come to their payout by this formula:

$7,000 - depreciation of 75% (15 years) =$1,750

Then, deduct your deductible from that pay out $1,000

Total payout on the part is $750.00


Now, you have two options at this point. Try to find an older part to replace the damaged part with. OR get a new 2011 part and be responsible for the difference in cost. That choice is typically always yours.

I'm not saying the above is exactly how Allstate does things but it gives you a good overview of how they come to the claims payout on a partial loss coverage.

HERE IS MY ADVICE:

Call the adjuster (not the agent) and ask them:

- What is the useful life schedule they are using for your damaged part?
- How much is your deductible?
- What is the exact dollar amount to replace the damaged part (the estimate from Nordic)?
- Do you have partial loss replacement coverage endorsed to your policy?


If you want, post that back on here and we can take a better look at it but without knowing those things above, it can't accurately be assessed.

...................assuming she is correct, then the next step is to switch insurance to someone like Stacy "debbie downer" who pro-actively asks these questions BEFORE the policy is written.

Other Insurance Co.
 

Stacy, where would I find this on Foremost Policy? (ie what would it be called/description)

If it were available on your policy it is:

Amended Machinery Partial Loss Payment Method (RCMAC)DESCRIPTION: For an additional premium the policy can be endorsed to provide expanded coverage for outdrive power units and outboard motors on watercraft that are 6 to 10 years of age.
Unfortunately, this is not an option on your policy with Foremost. Not all carriers have this endorsement available. Many of the performance carriers do not. The carriers that do, typcially only allow it on boats of up to a certain age.

Call me on Monday if you want to discuss this.