Boat insurance

[Talon]

We are getting ready to renew our insurance. Who do everybody use? Right now, I have an 'agreed upon value' policy with Allstate, but they don't honor boat safety classes for discounts, so I'm going to look around and see who else is out there. Wouldn't mind saving a couple bucks either.

[merwin10]

DON'T go with a low bid but check the policies closely! Even though it is a VALUE policy there are always a few hidden GOTCHAS! One of the major points I look at is the depreciation clause. Ok how does this work? Well lets say you hit something with the stern drive. The replacement cost is $3700.00 with 10 hours of labor, so you think you are going to get $3700. No you have used it for five years, so the insurance company depreciates it, some times as much as 40%, so now your $3700 is worth $2220. Then there is the deductible lets say you chose $1000 to keep the policy cost down. Now your settlement is down to $1220, so your out of pocket expense is $2480, to replace the $3700 drive. Some insurance companies have a fixed labor rate, your dealer gets $90 per hour, insurance policy has a fixed rate of $50, so it cost you additional $40 per hour to have the dealer work on it. Then you need to get to the fine points, to they pay for hauling, towing, seabed damages (this one is important one in Florida), spill clean up, personal liability, other boat marina property liability and the list goes on and on. Also if you are planning a trip out of your area you need to see what extra it is going to cost to insure your boat elsewhere. Just because you are insured in your area you could trailer the boat across an imaginary line and you not covered.

Some of the new EPA rules make the marinas just as responsible for a fuel spill as you are when your beloved boat burps a half gallon of gas over the harbor. IF they don't report the incident and get caught not reporting the spill, they can face huge fines.

READ the policy carefully, if it is not in writing it does not count. ASK for the policy exceptions, some things like war, terrorism, certain acts of GOD that are not covered. You might think I am joking here I am not. There was a 60' Yacht that went to the Caribbean, while there the Yacht was surcome by an act of piratecy. Since the boat was a Register US Vessel (Documented) the Insurance company claimed it was an act of war! Took five years to settle the case. By the time the owner got the vessel back it was a total loss!

So as in everything BUYER BEWARE not all policies are equal.


Mike -  

[Talon]

All good points. I'm even looking into what riders I will need to cover my boat while in FL and the Bahamas this summer. Most policies only cover the boat within a certain geographic area.

[Nauti-Dayze]

I had a problem this last year where a damn jet ski torpedoed me broadside! Earlier in the year when I purchased my boat the insurance agent mis-figured my rate with the wrong motor. The quote was 2x what I thought it should be so I raised my deductable. later when he caught his mistake I/he forgot about the decuctable. I normally carry a $100 deduct. I still had the $1000 deduct when I got hit. And wouldn't you know it the A-Hole didn't have any insurance. So I'm out a grand. State Farm was good about the claim. I took it to the Rinker Dealer on Grand Lake and it was repaired. Just remember to check everything before you finish.

[merwin10]

Story from Yachting - An 80' yacht was purchased by a person in Flordia! It was crewed down from Virginia Beach area by a USCG Master Captian. On it's way around the Keys it ran into a sea grass bed that had grown up and the Captian did not think much about it do to the water depth was deep enough for passage. He motored thru and continued to port to deliver the yacht, unknowning that his passage over the seagrass was observed by a State Envionmental Police. Once delivered and sea trialed by the new owner he and the previous owner completed there deal. A week later the yacht was impounded for the recent damage to the seabed and two other accounts by the previous owner for the same thing. The new owner was upset that his boat was impounded for the damage even when he wasn't the owner when the damage occured. His insurance company did not cover the damage seeing he did not own the yacht at the time! The police would not release the yacht until the fines where paid, totaling some 250,000 dollars. It went to court and the new owner lost the case and was to pay the fines in 90 days or the yacht would be sold at public auction to cover the fines.

So watch out for sea grass in Florida and make sure your insurance covers any seabed damage.

Mike -  

[Mikes342]

I purchased my insurance through Boat US.  I used the Agreed Value.  I thought it was the best deal.  Overall and I have been insured by them for several years.

Mike

[BigSioux232]

I have my house, vehicles and boat all insured through the same State Farm agent so we get pretty sizable multi-line discounts that no other insurance company has been able to touch.  He is also a boater who I boat and socialize with.  We've had vehicle claims through him before and never had an issue.  He would not steer us wrong.  If he did, he'd lose a lot more than just my boat policy.

[chesbay]

I agree with Merwin.  Low rates are great, but what's standing behind those low rates.  I have insured my past three boats with BOAT U.S.

Why would I go with a company that usually has high premiums?  Because I want an "agreed value yacht policy", not just cheap boat insurance.  This way there is no depreciation worry; covers the boat, medical payments, fuel spills, personal effects, liability, etc.  

In addition, as a BOAT U.S. member (although I'm a former BOAT U.S. manager, I'm not trying to sell anybody anything. ), I like knowing they will handle tows, jumps, salvage, etc. and back me up if I have problems with Rinker or my dealer.  

When I factor in the discount for being a United States Power Squadron Member and a no loss credit (knock on wood) for the past ten years, the difference between my policy and the "cheap ones" was a few hundred bucks a year.

I figure it is money well spent because I don't stress about it.

Phil