Insurance Question

[donhaller]

When insuring a boat should it be insured for the purchase price or what it costs to get another similiar boat? For example if I paid $1000.00 for a boat that shows a NADA for around $6,000 to $9,000 what should it be insured for? The boat is in good sailing condition with no major issues. Should it just be insured for the price paid or what its worth on the market?

[tommays]

My current boat is 28 years old and i did and agreed value on the hull of 8000 dollars and a agreed value on the trailer of 4000 dollars


As i keep putting it in better condition i will raise the value on the hull to what one in replacement condition is going for as many people have put a lot of work into older boat and NOT raised the value enough to cover it if it is lost

[SailKing1]

You will probably find that the insurance company will require a survey before they insure the boat. This will help them determine the value and whether the boat is insurable.

[WouldaShoulda]

If one pays -5k for a boat they should consider insuring for liability and salvage only.

[awol58]

Originally Posted by donhaller

When insuring a boat should it be insured for the purchase price or what it costs to get another similiar boat? For example if I paid $1000.00 for a boat that shows a NADA for around $6,000 to $9,000 what should it be insured for? The boat is in good sailing condition with no major issues. Should it just be insured for the price paid or what its worth on the market?

Most companies insure based on actual cash value (cost new less depreciation) unless the do it on agreed value (the most that they will pay) or replacement cost (usually needs to be newer than 10 years with survey). So, that said, you want to insure the vessel for what is would cost you to replace with same of like and kind. Most company adjusters are going to find three examples,one of less value, similar value and greater value and then make an offer.

Owner, insurance agency with 25 yrs writing P & I, Hull coverage
Certified Insurance Counselor.

[xort]

Boat US let me name the 'value' I put on it. This was near the value the surveyor put on it but more than I paid for it. It was over the value they usually quote for this boat. it is largely surveyor dependant.

[doubleeboy]

I throw this out for what its worth.... I just got quotes today for our new (to us) boat pending the survey this weekend. Boat US was double the cost for same coverage as my homeowners/car insurance provider quoted me. I also called a couple independent brokers, they could not touch the price Nationwide would give me. Its worth a call to your car or home insurance company and see what they can do.

michael

[sabre386raven]

I had coverage quoted by State Farm while they were quoting me on auto and home insurance today. They were half as much as my "marine insurance" which has some high deductibles.

Is there any reason for not going with such a deal? I can also get an umbrella policy that covers any of the 3 (auto, home, boat) and just have to deal with one insurance company. They also said I had no "limits of navigation" or "limits of named storms". Is this a good idea to bundle all my insurance needs?

[danjarch]

The question of having your auto insurer cover your boat has to do with wether they cover the boat them selves or go through another company. Just about all insurance companies will tell you they will cover your boat, but if you ask a few more questions, you'll find out they are buying coverage though another insurer.

For me I use USAA for my cars but they get they boat coverage from progressive. USAA wanted $265. When I called progressive, they quoted me $154 if I remember it correct. This was for a 24', 30 year old bristol corsair with $300,000 liability. It wasn't worth getting full coverage in my opinion. Paid less then 3k for it and figured if it was lost I'd just buy something else.

[awol58]

When it sounds like a good deal it usually isn't. Read the insuring agreement in the policy. You may find that you are paying for coverage that you will never get. Particularly the numerous policies out there that say..."we will only pay that sum which is the lesser of the agreed value or actual cash value". IMHPO, I would not insure my boat with a company that also insures motorcycles, houses, cars, jet skis, motorhomes, etc. I would only insure my boat with a true marine insurer. They are the ones that talk about P & I(Protection & Indemnity), Hull insurance, etc. Companies with the names like Travelers Marine, Chubb & Sons, Old United Casualty, etc.