RLI Insurance Won't Be There for You

[Humuhumunukunukuapua'a]

This seems like an important story to read for anyone considering purchasing insurance (especially from RLI Insurance Corp.) for a boat. It's food for thought for all of us who think we're insured against catastrophes of any sort.

RLI Insurance Left Us Adrift

 

[Scott L]

Why continue to pay for yacht insurance if the vessel is in dry storage? I would default on that loan in a New York minute and let the 3 parties duke it out in court.

By the way, your posting has already had an effect. I forwarded the story to our Yacht Insurance Division who are quite surprised by RLI's actions. Normally manufacture defects are not covered, but losses associated with them are. Our limited book of business with them will most probably be renewed with alternative carriers.

 

[Humuhumunukunukuapua'a]

It's not my personal story, though it is that of another scubaboarder who will hopefully chime in.

I'm under the impression that defaulting on the loan is not an option because of the hit to an otherwise perfect credit rating that would entail.

 

[Scott L]

I'm under the impression that defaulting on the loan is not an option because of the hit to an otherwise perfect credit rating that would entail.

I assume the manufacture, if still in business, would eventually be held legally liable for the cost of the vessel?

 

[Guy Carrier]

As far as defaulting on the loan, our lawyer tells us the finance company will come after us and could take our home.

We won our suit against the builder a year ago and we're still waiting for the results of the award hearing after a year. The builder is overseas and has ignored the lawsuit so we expect it to be very difficult to collect any award.

 

[Scott L]

As far as defaulting on the loan, our lawyer tells us the finance company will come after us and could take our home.

We won our suit against the builder a year ago and we're still waiting for the results of the award hearing after a year. The builder is overseas and has ignored the lawsuit so we expect it to be very difficult to collect any award.

Had that not been the case, the carrier would have likely paid the claim then subrogated against the manufacture. A very sticky wicket that no one should experience...

I believe Florida law declares ones primary home untouchable against such action. Other states,

 

[EastEndDiver]

Guy,did you contact the Surveyor and ask why this "defect" was not picked up by them?This seems to be something they should have analayzed carefully due to the fact that it was a "failure point" and could and did cause catastrophic results.If I read your account of the story correctly this was at or below the waterline and was delaminated from the inside,this should have been a "red flag" to any Surveyor.

 

[Scared Silly]

Interesting post and good info. Sorry it had to be at someone's expense.

EED - the delimitation may have been hard to detect. The majority of the seal could have been fine until there was just enough pressure and the whole thing went. Think of it like dry rot - unless you tear into the wall it sheetrock/siding may look fine.

What bothers me and perhaps Guy can explain is the design of the safety hatch. It would seem to me that the hole hatch pushed through? Which IMHO not only was there a delamination issue but also a design flaw.

 

[EastEndDiver]

SS any good Surveyor would use a "Moisture Meter" in any suspect area.It is an accurate non-destructive way or ferreting out these kind of defects.A Surveyors job is to find and identify these kind of problems that is what they are hired and paid for,both the buyer and the bank rely on this information before purchasing. This Surveyor might not have done this job correctly.

 

[rjack321]

SS any good Surveyor would use a "Moisture Meter" in any suspect area.It is an accurate non-destructive way or ferreting out these kind of defects.A Surveyors job is to find and identify these kind of problems that is what they are hired and paid for,both the buyer and the bank rely on this information before purchasing. This Surveyor might not have done this job correctly.

Agree in part. Having a hatch there is a huge design flaw in the first place. Its existence is obvious when the boat is out of the water. Any surveyor worth his salt would have: 1) noted that massive hole in the hull 2) refused to warranty said hole unless it was rebuilt to solid structure minus hatch.

Dinking around with moisture meters is a mere band aid, although it sounds like even this hole might have been missed too.