Insurance Issues

wbk728 · #1 (**permalink**) 01-08-2002

I''m buying a 1978 Hunter 25 with 1, possibly two partners. Can anyone advise me on insurance matters, particularly in regards to liability? We are not sure exactly what we need to know when talking to an insurance agent. I did not see any articles that specifically pertain to insurance on sailnet, if you know of any resources we would be very grateful.

Jeff_H · #2 (**permalink**) 01-09-2002

I recently went through a process of evaluating insurance when I changed boats. I priced a number of policies. I found that companies which are in the marine insurance business, rather than general insurance companies that happen to write insurance seemed to have the best prices and were the easiest to work with. After talking to a farily large number of insurance companies found that Jack Martin in Annapolis and BoatUS had the best deal. Jack Martin was far and away easier to deal with and seemed to understand how to work though the issues of insuring an older boat far better than BoatUS. The Underwiters were clearly familiar with dealing with older boats and thier associated issues.

BoatUS has insured my boats for close to 18 years and has provided reasonable rates and quick settlements in the few minor claims that I have had. Getting through the Underwriting process at BoatUS was a royal pain in the butt, and I eventually got sick of dealing with an underwriter who clearly knew nothing about sailboats or dealing with customers. I eventually bounced my way up to his manager and it got very much more reasonable from there.

Both companies (and the bank) required a full purchase survey. I went with BoatUS in the end because they were willing to insure the boat during shipping on a truck as a part of the policy and Jack Martin had an extra for that coverage. BoatUS also included a bigger towing coverage. That said, in hind sight, when I finally ended up with an apples to apples comparison, Scott at Jack Martin was actually pretty even in cost and was much easier to deal with.

Jeff

aasault · #3 (**permalink**) 01-09-2002

If you''ve been with a large, well established company for a while, I would keep all my insurance in one basket. I have been with Allstate for over 20 years, with several power boats, houses, cars, etc., and with my new sailboat. I''ve had 2 claims in that time, and Allstate never blinked on the settlements, no questions asked, prompt and courteous.
When I get a new toy, I just call my agent, give her the details, she mails the paperwork, and that''s about it. Truly painless. The rates are as good, if not better than most companies specializing in boats.
Get with a big company, and stay with ''em. It''s a little more expensive when you''re younger, but it pays off later on.

that''s my $.02,
Art

mojizm · #4 (**permalink**) 01-09-2002

You don''t state the value of the boat but if it is low you might consider self insuring
(eat the cost if it''s a total loss) This makes sense if you do the math in some cases.
It would be wise, and sometimes required by marinas, to carry liability insurance. I just purchased a liability policy for a 31'' sailboat for $70 per annum through State Farm. My formula is that if it costs 20% or more of the value of the boat per annum I don''t generally want insurance other than liability. Be sure to factor deductables and exclusions into your calcs as these costs can make the difference. Also take into account the survey cost if the only reason you get a survey is for insurance purposes. p.s. don''t expect to go to weather very well in that boat.

aasault · #5 (**permalink**) 01-09-2002

me again...I''m new to saiboats, but if you need a survey to get insurance, you''re probably with the wrong insurance company.

VIEXILE · #6 (**permalink**) 01-09-2002

Survey invariably required, Bwana. "Insurance Survey" runs a couple (few) hundred bucks as compared to a purchase survey. Mandatory. I''ve seen several done in the last few weeks.

halyardz · #7 (**permalink**) 01-10-2002

Can a hike in boat rates be far behind?I noted on a local NYC TV station''s newscast that Allstate plans to hike (18% I think) its
auto rates in the NY area, other firms to follow. I wonder if increases in boat insurance are just around the corner.It would be nice if they could tell us why?More auto thefts? If thefts went down would our insurance (I doubt it)?

aasault · #8 (**permalink**) 01-10-2002

VIEXILE

I don''t think insurance surveys are "mandatory". I''ve insured several power boats and my sailboat over the years, and was NEVER required to provide a survey. All were production boats with well known pedigrees. I paid cash for the boats, so maybe that''s the difference, or maybe it varies by regional insurance laws.

VIEXILE · #9 (**permalink**) 01-10-2002

O.K. Mandatory in certain areas. I had to provide a survey to get insurance, and I shopped it, for my Bristol 35. However, I didn''t have to update the survey with insurance renewal - only when the boat transferred. On low-end deals with new equipment, the insurers can probably look at a book value. Down here in St. Thomas, mandatory. Real marine insurers, mandatory, at least to inititate the policy, with possible updates down the road when some underwriter has nothing else to do ....

VIEXILE · #10 (**permalink**) 01-10-2002

...and the Bristol was in Maine when I originally insured it through the Hinckley Company (which, by the way, cost WAY too much). It''s now with Acadia Insurance with twice the offshore distance and three times the coastal distance. I think I''m covered, as I recall, Eastport Maine to the Chesapeake, for less than $600/yr., with haulout 10/1 through 5/1. Now I''ve got to find the rider to truck the boat to Florida and find the insurance to sail the boat from Florida to St. Thomas in April/May. Crap.