What I learned about Boat Insurance Today

[TheOtherLine]

First of all, we could really use a forum topic on General Chat (HINT HINT)

OK. So I was reading some other posts somewhere and guys were making comments about how they don't have coverage if they have a boat on a lift but would have coverage if they got it off the lift.

Others said their coverage is suspended during named Storms or Hurricanes.

Anyway, it got me thinking so I called my insurer (Boat US) and here is the deal:

I have a stated value policy which means that my claim can not be reduced by depreciation, nor do I get actual cash value. My boat is insured for $80k and if it's a total loss, I get $80k this month, next year, 5 years from now.

I have 1% deductible (1% of $80k = $800) BUT my deductible increases to 5% in a named storm environment, regardless of whether I haul it off the lift or not.

If I do haul it off the lift and secure it according to their specs, the deductible is 3%.

Additionally, they will pay 50% of the haul out cost, up to $1,000. (So, if your local marina will haul your boat out and block it, or tie down your boat and trailer properly, BOAT US will pick up part of that tab.

In Florida, it is true that many insurance policies do not cover TS or Hurricanes AT ALL>

I have made a few calls to other companies and NONE will only insure the boat if off a lift but not insure it if on a lift. In others words, they either fully insure it either way, or they don't insure it at all. (Subject to deductibles).

That having been said, I now have a better feel for the $ risk and may make some different decisions about how to handle names storms in the future. The cost of a trailer is going to be $3k easy. Tow vehicle? Used? $10k. Storage for trailer? $1k yearly. Liability insurance for both? $1k yearly.

Looks like assuming the risk and paying the 5% deductible could be cheaper.

Hope this helped someone...

 

[TheOtherLine]

How did you get ins co to go along insuring boat for several tho more than current "new" sale price? (I have never shopped for a boat like yours, I hope one can buy new for less than $80k)

Don't feel to smug about "agreed value today will be good 5 years from now". Many comments at Fl Sportsman about just this. When current value vs. "agreed value" widens, ins co will quite often refuse to renew policy.

1) How did you get..... Easy. Just showed them the MSRP invoice on the boat I bought. It was an 06 leftover I bought in 07. Of course, I did not pay MSRP for it, but they accepted the MSRP as replacement value.

2) Don't feel too smug... You are probably correct about their willingness to insure a boat at original stated value, 5 years from now. They are smart enough to know that, that approach is fraught with fraud potential. However, I am certainly willing to accept less 5 years from now versus less, 1 year from now!!

 

[JWL]

Progressive asked me how much I wanted to insure the boat for and I told them. They then told me the yearly cost and I paid them. No problem.

Much like when someone like an actress insures her gams or, a golf club insures against the possibility of someone getting a hole in one on a given hole during a tournment.

You can insure anything if you are willing to pay for it.

 

[MaxOut]

How did you get ins co to go along insuring boat for several tho more than current "new" sale price? (I have never shopped for a boat like yours, I hope one can buy new for less than $80k)

Don't feel to smug about "agreed value today will be good 5 years from now". Many comments at Fl Sportsman about just this. When current value vs. "agreed value" widens, ins co will quite often refuse to renew policy.

1) How did you get..... Easy. Just showed them the MSRP invoice on the boat I bought. It was an 06 leftover I bought in 07. Of course, I did not pay MSRP for it, but they accepted the MSRP as replacement value.

2) Don't feel too smug... You are probably correct about their willingness to insure a boat at original stated value, 5 years from now. They are smart enough to know that, that approach is fraught with fraud potential. However, I am certainly willing to accept less 5 years from now versus less, 1 year from now!!

I use Allstate and the boat is insured for whatever value you want to pay for within reason. It is more about what you are willing to pay for premium less about what the vessel is actually worth. As the boat depreciates the insurance company is actually getting the better end of the deal as you are paying premiums based on a larger value (as long as you do not have a total loss). If I have a total loss 30 years from now and still have the same level of coverage ( I have 70K with 10% equipment)Allstate will slice me a check for 77K. Its like a life insurance policy it's not what you are worth when you die it's what you are willing to pay for premiums while you are living.... :shock: :lol:

 

[trashman]

you may want to also check if you have a spill liability insurance. I know SEATow has aN insurance company and they insure you up to 1000,000.00 spill liability. So if you have a fuel spill on the water it could be very costly without a spill insurance. I found out that many other ( Do not know about Boat US) insurance companies Allstate etc do not offer this clause at all. trashman

 

[MaxOut]

you may want to also check if you have a spill liability insurance. I know SEATow has aN insurance company and they insure you up to 1000,000.00 spill liability. So if you have a fuel spill on the water it could be very costly without a spill insurance. I found out that many other ( Do not know about Boat US) insurance companies Allstate etc do not offer this clause at all. trashman

Interesting? I will look into it..With Allstste. Thanks for the info.

 

[Parker 2310]

Do you have any reccomendations on where to go for the insurance. Are you happy with Boat US? I will need to get insurance for my boat, but dont know where to start or what to get. I have never had to insure a boat in the past.

Walter

 

[BradV]

I have been through the boat insurance thing 10 different times in the year i have had my boat. It is alot easier for people to get insurance out of Florida first. And especially if you are not in Palm Beach, Broward, or Dade county. As soon as i told half of the people i inquired with where i was located in Palm Beach they said sorry you only have 2 carriers that will even consider it. I ended up going with AllState. I had progressive but they would not cover my boat in the Bahamas since it is only 25 feet. So Allstate covers the Bahamas and will do an agreed value for the hull and motors. Progressive will as well. Boat US will only do Hull value which if the boat isnt new they will look it up and thats it. Doesnt matter what you add. You can try to add to it if you put some more stuff on it but sometimes it wont go through. Long story short call around and read the policy youd be amazed at how different most of them read.

 

[ppem45]

How did you get ins co to go along insuring boat
Hey FF, this has to be the first time I have ever known you to say "you" instead of yer and don't throw that Egret on me for saying that.

 

[ppem45]

What,no egret?

 

[ppem45]

Thanks FF, my sister is here from CA and I wanted to show it to her. If you don't mind could you send the other one as I cannot find it. Thanks

 

[tommyr904]

I had Boat US never again,long story but they would not honor a claim.the insurance I have now gave me a discount if I move my boat from the east coast to the west coast if there is a named storm coming.

 

[Micheal J]

Good thread for sure..alot of different options out there..looks like I need to start lookig around a bit.
I think FF should take out a policy to protect the Egret :lol:
ppm45..ALWAYS remember to spell Egret w/ a capital letter!! :lol:
MJ.

 

[JET O_Wey]

Speaking of insurance and critters… I have always heard boats are not insured for infestation; say a cat or such destroying things during winter storage. Another thing I always heard is typical coverage does not cover for fuel / oil spill cleanup and fines. Are these things generally true?