What happens to the happless boats that insurance scraps? - SailNet Community

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  #1  
Old 07-09-2008
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What happens to the happless boats that insurance scraps?



My good friend got in to a pickle with his large sailboat.... Basically, he got torpedoed by a large rock, on a clear, sunny day, in the middle of the channel. The yard estimate comes over 70% of the boat's value and insurance will scrap it.... What happens to the poor unfortunate sailboat?
Can my friend buy it from the insurance and repair it? Will it go on the auction block? Can my friend get the first dibs in that auction? What is the usual procedure in this type of situation?
Any ideas?

(I love that boat... it sails so nice.... and the memories...parties... company)
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  #2  
Old 07-09-2008
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A lot depends on whether or not there is a 3rd party - the bank. If there is a lien holder, then your friend will likely be uninvolved with any negotiation/decision. Has a salvage operation already begun? How did your friend get the boat out of the channel and to where it is now?
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Old 07-09-2008
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The insurance will settle with him for the totalled value. They will have established a salvage value. He can net the salvage value from the settlement and retain the boat or let them keep it. The insurance company at some point will sell the hull as salvage or scrap. He would have to question the insurance company to see how he could try to buy it back later.

Last edited by Jonesee; 07-09-2008 at 03:14 PM.
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Old 07-09-2008
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Owners can buy the boat back..how often I can't say.

But a fellow at my club had his 36 racer/cruiser break its mooring pendant and layup against a seawall, damaging the rails, topsides and toerail. The insurance company totaled the boat and paid him $30K, he bought it back for $1K, had it repaired by a good local fg guy, my understanding is for half the insurance payout. With a navy blue awlgrip finish, the boat looks better than new.

So he made out like a bandit, subject perhaps to having some insurance renewal problems or cost.

The interesting thing is, he still hangs the boat off his mooring with a single pendant, no chafing gear applied.
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Old 07-09-2008
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Quote:
Originally Posted by sailingfool View Post
Owners can buy the boat back..how often I can't say.

But a fellow at my club had his 36 racer/cruiser break its mooring pendant and layup against a seawall, damaging the rails, topsides and toerail. The insurance company totaled the boat and paid him $30K, he bought it back for $1K, had it repaired by a good local fg guy, my understanding is for half the insurance payout. With a navy blue awlgrip finish, the boat looks better than new.

So he made out like a bandit, subject perhaps to having some insurance renewal problems or cost.

The interesting thing is, he still hangs the boat off his mooring with a single pendant, no chafing gear applied.
You think he would learb from the last incident - wait a minute - maybe he did.
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Old 07-09-2008
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Z

Usually when you buy it back and repair it, insurance can be tough to get...certainly the insurance company you buy it from won't touch it, nor will others if they know the history. Then if you do get insurance, the every 2-3 year survey, unless it was repaired to standards, can be a gotcha....be careful

dave
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Old 07-09-2008
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they are often sold at an auction. usauctions.com used to sell lots of boats with giant holes, sunk etc.

that is if there is any value to be recovered.
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Old 07-09-2008
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sailingfool will become famous soon enough
These guys Certified Sales Inc: Specializing In Yacht Sales, Power Boats, Sail Boats, Brokerage, online boat auctions, Motor Homes, RV's, Motorcycles, Snowmobiles, and Heavy Equipment always have a bunch of wrecks.
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Old 07-10-2008
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These guys too:
Welcome - Salvage Direct
The catch is, you must be a licensed dealer or dismantler to actually bid on the things. There were hundreds of boats that were zeroed out by the insurance companies, and they bareley had a scratch after Katrina. The dealers mopped up. Pay some kid a couple hundred bucks to clean it up after getting it for a fraction of what it's worth, a little gelcoat repair, a dab of paint, turn around and sell it for thousands. How whacked is that!?
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Old 07-10-2008
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sailaway21 is just really nice sailaway21 is just really nice sailaway21 is just really nice sailaway21 is just really nice
I thought they all ended up off the end of SV Distant Star's dock. (g)
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