My sportfish caught fire 20 miles offshore. We abandoned ship into the raft. The boat burned to the waterline and sank. I filed the claim. I expected a check in a week. It took 4 months.
Key Takeaways
- The Arson Investigation: Fire at sea is the #1 fraud vector. If the boat sinks (destroying evidence), the insurer assumes fraud until proven otherwise. They will investigate your finances (credit score, debts) to see if you had a motive to burn it.
- The “Reservation of Rights”: You will receive a scary letter saying they are investigating and reserving the right to deny. This is standard. Don’t panic, but get organized.
- Total Loss Calculation:
- Agreed Value: They pay the face value (minus deductible).
- ACV: They fight you on the value.
- Wreck Removal: If the boat sank in shallow water, you are liable to remove the debris. This delays the hull payout until the environmental mess is cleared.
The “Why” (The Trap)
The trap is “Financial Discovery.”
Because the physical evidence is gone, they investigate you.
They will ask for 3 years of tax returns, bank statements, and phone records. If you refuse, they deny the claim for “Failure to Cooperate.”
The Investigation (I Talked to Investigators)
- SIU (Special Investigations Unit): They look for: Boat for sale for a long time? Engine trouble recently? Owner in debt?
- Timeline:
- Month 1: Investigation / Statements.
- Month 2: Financial records review.
- Month 3: Coverage decision.
- Month 4: Check issued.
Comparison Table
| Claim Type | Investigation Level | Payout Speed |
| Collision (Boat exists) | Low | Fast (2-4 weeks) |
| Theft (Boat gone) | Medium | Medium (30 days) |
| Fire at Sea (Sunk) | High (SIU) | Slow (3-6 months) |
Step-by-Step Action Plan
- Cooperate Fully: Give them the tax returns. If you have nothing to hide, speed up the process.
- Prove Maintenance: Show receipts that you just spent $5,000 on new turbos. People don’t fix boats right before burning them.
- [IMAGE: Photo of recent maintenance invoices]
- Preserve Safety Gear: If you have photos of you in the life raft with your ditch bag, it proves you were prepared, not suicidal/criminal.
- Hire a Public Adjuster (Maybe): If they drag it out past 90 days, a PA can help force a decision.
FAQ
Do they pay for the life raft?
Yes, usually under “Personal Effects” or “Safety Gear.”
What if I didn’t have an automatic fire system?
If the policy required one and you didn’t have it, denied. Otherwise, covered.