CONTINUOUSWAVE

What is the salvage value of a 1982 MONTAUK boat damaged in a storm?

BACKSTORY: As the result of a recent storm, the fuel tank [on a 1982 MONTAUK 17 was contaminated with] saltwater. Waves coming over the transom overwhelmed the bilge pump, and the fuel tank began to float. The floating tank hit the bottom of the reversible pilot seat. The lens on the fuel tank gauge broke. Apparently water from waves or blowing water from winds of 60 to 7-knots got into the fuel tank through the broken fuel cap gauge.

I didn't even notice until a few days later when the 1998 Mercury 115-HP 2+2 engine was not running quite right, especially at idle speeds.

A repair shop found about six ounces of water in the [fuel-water] separator [filter that was] probably there after running four to five gallons of fuel through the filter. There was a [phase separation] line where the water and gasoline met. The mechanic determined the water was saltwater by putting some bay water into a jar of fuel: the result looked like the sample.

After paying a fee for "hazmat", the fuel was drained. Four carburetors were removed. The fuel lines and filters were replaced. The fuel tank was filled with 15-gallons of gasoline and [two-cycle] oil.

The boat was lifted crane, relaunched, and test run made.

The engine seems to be running fine. The cost for all this work was $1,400.

Progressive insurance was notified, and a claim was filed for storm damage. We just heard from Progressive, and they are probably going to total the boat at its agreed upon value of $10,000.

Progressive seems to fear future claims, and they are treating the boat as if it sank.

The engine never went underwater. The bowlight stopped working, and that's the only other damage. The battery in the console did not go under.

Progressive said that they may offer to sell us the boat back as salvage.

If we can buy back the boat for a couple thousand, we can look at re-powering. The engine is making some ugly sounds but it has been since we bought it seven years ago. A dealer in Delaware has a remanufactured 2002 115 Mercury with a three year warranty for $5500. Hell, we could get that and a new trailer and be breaking even. No way I can afford a new engine.

In my experience with automobiles, the salvage is usually a set percentage of the market value of the vehicle, usually 20-percent. So a $10,000 vehicle has a $2,000 salvage value, regardless of it was burned to a crisp or just barely damaged enough to write it off. Insurance companies make contracts with salvage companies to buy all their written off vehicles for that 20% set percentage of market value.

Boats written off would likely be somewhat similar in philosophy but the percentage may be less as the claims are usually for sunk vessels or vessels damaged in storms.

If your outboard fails any time soon, you and they would never know it was storm damage but they would likely have to pay a claim for a new outboard.

Just my comments for what they are worth but I’d say 10 to 20-percent of boat value would be a good range as a guess.

What seems odd to me: if the boat is written off as salvage, will you still be able to register or obtain a title to it as a Boston Whaler boat?

I believe this would depend on the particular state in which the boat was being reclassified as salvage.

A corollary: in the future could you obtain insurance on the boat based on a valuation of $10,000 and the boat having been written off by another insurer as salvage?

In Florida it is a pain to get a salvage vehicle back on the road. luckily for me the inspection station for re-titling Salvaged vehicles is 3 miles from me. They had to physically inspect the motorcycle to make sure it was road worthy and all parts replaced or repaired. Some people in FL would have to drive many hours to get there but things may have changed as this was early 2000's.

Where is the boat located? I would not repower until it pukes. I would not pay $5500 for a remanufactured engine, especially a 2 stroke.