Re: Boat insurance - experience?
I'm wondering, I hear about people spending huge $ fixing their blown drive systems or they spin bearings in the engine, etc. Basically any big, mechanical failure: Does it cover that stuff, too? I asked them if it did, they said yes, though I haven't seen paperwork or read any fine print so I'm still skeptical.
It would be GREAT if it does. I'm always so damned paranoid about "improper, sudden removal" of the lower unit.
No. FYI I'm actually an insurance adjuster, and an expert in interpreting the fine print on these things for several different companies.
Boat insurance (and car insurance for that matter) will almost always specifically exclude coverage to any damage caused by mechanical/electrical failure, or freezing. Most policies also usually exclude rodent/varmint damage, like squirells making a massive nest out of your seat upholstery. And, to share you how loopholes can really screw with these policies I'll share that if a RACCOON tears up your upholstery, it IS covered. Why? Raccoons are not varmints or rodents. They're essentially carnivores. I've seen more than one insurance company deny damage from squirrel nests, and pay for damage from raccoon damage. And on more than one occasion I've been asked to inspect a boat to try to determine exactly what kind of animal caused the damage...those are really fun claims (sarcasm).
So anyway...to get back on track. If your engine siezes, or your outdrive locks up solid, or you improperly winterize and crack your block, or you uncover your boat in spring and find a squirrels nest, those will all still be your $3,000 problems, regardless of insurance you might have.
But if you hit another boat, or hit something in shallow water and tear off your lower unit, or smash a dock, or your boat gets beat to heck by a huge storm, or gets stolen, or burns, or sinks, or is vandalized by teenagers, or runs over a crab trap, or suffers pretty much any "sudden and accidental" occurrence that is not specifically excluded, then the policy pays to either fix or replace the boat (minus your deductible)...whichever is cheaper for the insurance company.
Then again, every policy is a little different. The fact that they told you "yes" makes me very suspicious as I've never seen it in my career. And I've learned over the years that insurance AGENTS are good at selling, but 90% of them are absolutely TERRIBLE at correctly interpreting the terms of the policies they sell. So I'd definitely want to see a copy of that policy in writing. If it does indeed cover major mechanical failures also, and it's still only $150 a year, then I want to buy my insurance from THAT company...please share the name if they do!