Insurance and Documentation

[orion1]

I am considering documentation. Today I received a call from a friend who just documented his boat. He has been insured with Progressive for several years. They have cancelled him on learning that he has just secured his documentation. He questioned them as to the reason and they stated that once a vessel is documented the government has a right to seize it in a time of war leaving them exposed for value the of the boat should it be lost.

I am state registered now and may stay that way. Has anyone heard of this before.

[Pblais]

He questioned them as to the reason and they stated that once a vessel is documented the government has a right to seize it in a time of war leaving them exposed for value the of the boat should it be lost.

Actually most loan companies require documentation because the state registration systems are so screwed up they can recover a boat when the owner skips town and making payments if it is documented. For a secure title documentation is the better way to go. Over time you save the sate registrattion fees though many states have other taxes and use stickers.

While technically this is indeed possible. You need to understand it has never been done only in the entire history of the United States.

The reason really does does not sound true. Progressive is not just a mom and pop insurance company that is new at this. Many of the mainline companies won't insure boats out of the country or offshore more than a certain distance.

[orion1]

PBlais,

It seems that your official post is different from the one you sent me in private. The one here is much nicer.

You stated in your private post that this was the "dumbest post ever to the forum". If you feel something needs to be said, say it here!

Sir, There are no dumb questions just dumb answers!

I take offense to your statement concerning my friend and his honesty.

He and I are merely the messengers.

The facts are;

He was canceled this week.
We are at War.
He has had Progressive on his boat since purchased.
The reason given to him was DOCUMENTATION and possible exposure to the company. (They are correct to feel that way.)

We have owned many boats over the years, all others have been documented. We are not new to this game.

The performance of this government in the past is no certain indicator of their actions now or in the future. Things since 9-11 have changed everything.

It is my understanding that Private Yachts have been used in other countries on many occasions.

I sincerely hope that he was mis-informed by a person who was confused, however, he questioned them and they confirmed through those above the initial contact.

The purpose of the post was only to determine the experience of others, as I was as astounded at his situation also.

[GordMay]

Originally Posted by orion1

PBlais,
It seems that your official post is different from the one you sent me in private. The one here is much nicer...

Which suggests that you should reply to the "different" private post, in private.

[Sunspot Baby]

Sounds like Progressive isn't very progressive.

George

[orion1]

Gordmay,

Sir, it would be nice to have total honesty here!

[JiffyLube]

So which insurance company is he with now?...BoatUS?

[orion1]

He is looking around now. Isn't it nice for them to do this two weeks before hurricane season. As I understand it is difficult to find insurance down here on the Gulf of Mexico these days.

[David M]

Originally Posted by orion1

I am considering documentation. Today I received a call from a friend who just documented his boat. He has been insured with Progressive for several years. They have cancelled him on learning that he has just secured his documentation. He questioned them as to the reason and they stated that once a vessel is documented the government has a right to seize it in a time of war leaving them exposed for value the of the boat should it be lost.

I am state registered now and may stay that way. Has anyone heard of this before.

I think your insurance company fed you a line of BS. The real reason is something different than what they are telling you.

Yes, the government could seize your vessel, but what are the odds of them wanting someones sailboat? Virtually zip. They are going to seize ships and other work boats before they start going after pleasure boats which for wartime purposes, are not very useful at all.

In fact, they could seize all boats if they wanted to. All it takes is an act of Congress to do so.

Someone at your insurance company has a pretty wild imagination.

[Therapy]

Originally Posted by orion1

He is looking around now. Isn't it nice for them to do this two weeks before hurricane season. As I understand it is difficult to find insurance down here on the Gulf of Mexico these days.

Just before the season and all, I would be calling the insurance commission.

[psteele235]

Originally Posted by Therapy

Just before the season and all, I would be calling the insurance commission.

And the Governor's office - he has made insurance availability a key part of his platform.

[orion1]

It is not my insurance company, but his, I am well insured at this time.

Neither he, nor I has anyway of knowing if the reason stated is true or an excuse for other reasons, but why would they not just give the real reason instead of making up some wild story like this.

Of course, the truth is sometime evasive, hidden, and not always PC, and many of us are afraid to discuss what they really feel in public. Perhaps insurance companies are no different than some of us.

I am trying to determine if they actually put this in writing or if it was just a phone discussion. I would like to post the letter here in order to vindicate myself and will attempt to do so if that is permitted.

In truth, they apparently do not need a specific reason to cancel, as people here have been fighting and loosing renewals on a daily basis, on boats and houses since Katrina.

[anotherT34C]

I think if it ever gets so bad that the US government needs to commandeer my vessel, mount a row of four pounders, and send me out on patrol, we'll have other more pressing things to worry about.

[Lancerbye]

Wow. This is an interesting post. I remember being cancelled by an insurance company after a minor claim that they didn't even pay. This was for a car and I wasn't in good hands as the ads they posted said. They only want to make money not spend it.

[Sunspot Baby]

It's always fun to bash insurance companies, almost as much fun as bashing attorneys, but every now and then something good happens.

I am with Ace American. Got them through West Marine. I pay a little over 1% of my insured value and that covers me up to 100 miles off shore and throughout the Bahamas. I have no restrictions on being in Florida for hurricane season (since I am in NC which is also a fairly high risk area). I have had 2 claims, one for a stolen dinghy, and one for a lightning strike. They settled both claims quickly and courteously.

Yes, I am documented, not state registered.

George