Correcting Survey Items for Insurance

[Nonchalant1]

Read the fine print on your policy and affidavit letter. I had to sign the letter that stated I had fixed everything but it stated that if any claims arise from items that were not fixed, those claims would be invalid. Since you won't have claims arising out of bad cushions, it should present no problem. However, don't sign something that is not true. Just add an asterisk and explain how you have fixed everything required except the purely cosmetic items that do not affect seaworthiness.

Doug

[Capt K]

So Jim, are you at this point now?

Good luck with it.

K

[Passages]

So Jim, are you at this point now?

Good luck with it.

K

Can't say. Don't want to jinx it.



ps: Note to the forum - when you are in the midst of a deal, be very careful what you post on an open site. This forum is regularily read by brokers, surveyors and other forum admins. I have recently had 'stuff' thrown back at me by someone in the trade after reading some of my concerns regarding a boat they were representing.

[Capt K]

Can't say. Don't want to jinx it.



ps: Note to the forum - when you are in the midst of a deal, be very careful what you post on an open site. This forum is regularily read by brokers, surveyors and other forum admins. I have recently had 'stuff' thrown back at me by someone in the trade after reading some of my concerns regarding a boat they were representing.

That's very true and a good thing to be aware of. However, it's a lot of "the truth hurts" type of thing. Just always to be careful to make it clear it is only your opinion so none of these guys can come back at you for bad-mouthing them.

K

[shark 1007]

The first thing insurance companies do these days is look to see if they can deny the claim. If you them you diid something you didn't, look for a "reservation of rights" letter which means trouble. In other words, they would likely try to deny the claim based on a materiel misrepresentation.

The way that shakes out is you'd have to defend your actions on the theory that the misrep. wasn't "material" meaning it didn't cause the loss or increase the risk. They'd get some underwriting nerd to testify they'd never insure a boat like that without everything fixed.

Battles with these institutions are to be avoided, look around, they didn't get all those big buildings by being dumb or from overflowing with the milk of human kindness.

I'd fix it all or carefully explain and get their written consent.

[krush]

It's just like any bureaucracy, only give them what they NEED and not one bit more.

It may make sense to have a completely separate insurance survey that ONLY addresses safety issues for this reason. Sure, it's costs a little bit of extra cash, but it's way worth it.

If you can get the guy to write two lists, than that is great too. One list for insurance (seaworthy/safety) and the other list to bring to the bargaining table--the only problem is that if you end up in court and the insurance company discovers this other list, you may be in for a crappy day.

All this paperwork exists to give the insurance company a possible reason to deny a claim. Common sense and paperwork are two topics that don't belong in the same paragraph.

I've dealt with this bullshit with building inspectors...once something gets written on paper, it NEVER goes away, regardless of how trivial it is. Don't let it get written down and you save many headaches.

I'm only 24 and already jaded in regards to the system LOL.

[rrrestorer]

Unless you have gotten a specific risk policy, which doesn't cover wallpaper, cushions, paint, etc., you are asking the insurance company to cover any loss to those items. Their policies are designed to cover whatever you want to cover. Differant insurance companies will cover all kinds of risk. An example is of course Llyods and their coverage of legs, hands and assorted breasts of performing artists. If you sign off to your insurance company that a yacht is in excellant condition than it should be in excellant condition, or according to them and the law you are potentially defrauding the insurance company. That is what they are trying to avoid by having you sign off on items that need to be repaired.
An example is of course yachtsmanwillies' boat, if insured at all it is certainly not insured for "full coverage" . If he sustained a loss (which would be a heartbreaking tragedy after all his work) and was insured in full, and went to collect for wallpaper, paneling, cushions, carpeting and other non life threatening items that fad not been repaired after the first loss he would be committing a fraud and the insurance company would indeed take a very hard look at his situation. Should they be liable for these items just because you signed off on them or because they are not "life threatening"?
We as insureds', paying what are it seems riduculous insurance premiums certainly are at opposite ends from the insurance companies, but if we didn't always want our deductibles bured in the repair bill and didnt want new cushions for old cracked ones , then our pemiums would certainly be smaller. I'm not saying that everyone does this , but in my 40 yars in the autobody and collecter car restoration business I have heard it countless times. Its pervasive , evryone wants to "do as well as possible " as long as there is a claim. I allways wondered what the preachers were thinking when they asked me to "save them " the deductible.
Because of this type of me against them thinking, on both sides we pay higher premiums, the insrance company is not really affected by this, as they charge premiums due to there experience. So when we pad the bill , the ones suffering are really the rest of the premium payers or us.
So in conclusion, and it seems that everybody does this, the insurance company is just trying to figure out what they are indeed covering, and we when we sign off on stuff that has not been fixed and that we want them to insure, we are just screwing the next guy, the guy or girl that has to pay a higher premium on their boat because somebody claims things that they weren't entitled to.
As times get tougher and the boats keep piling up a the repo yards and probasbly claims for boats increase because of "accidental fires" , I wouldn't be syrprised if you don't get more inspection of boats just to see in what condition they really are. So your being able to sign off, because of your good name and character might just come to an end anyway.
Do as I think it was Seaeric said, and annotate the declaration and save your good name. I've known my broker for 25 years and I sure would be embarrassed if he were to show up and find that I had been lying to him.
I guess it's ok to lie if we don't know the insurance people, after all its like cheating on taxes everybody does it.