Boat Insurance for a $6k cash boat? (first time buyer)

tenuki · #1 (**permalink**) 02-12-2007

I live in Seattle area and am looking for a 24-26 keelboat for puget sound sailing. I'm new to boat ownership, been at a club the last few years and ready to have my own boat closer to my house (club marina is 30+ minutes away, local marina is 5 minutes away).

So, here is my list of questions.

1) Boat insurance, ? worth it ?, required? (paying cash), ?
2) What do I look for regarding titles, etc. Is it similar to a car?
3) Any additional recommendations or advice?

hellosailor · #2 (**permalink**) 02-12-2007

Your marina may require liability insurance. What it will cost will depend more on how you are rated (no prior ownership; boating safety course or formal training? etc.) than the value of that boat. If you have auto insurance, many companies will cover boats up to 28-30' at a bargain rate since it is just another motor vehicle on your liability policy to them.

Boats since 1972 have been built with a HIN, similar to a VIN, and usually are titled and registered similar to a car. Since you are looking to buy anyway...stop by some local brokers and ask. You might find one worth dealing with, and a boat to go with it.

sailaway21 · #3 (**permalink**) 02-12-2007

I wouldn't insure it. You're going to need every dime you've got!
As hello says, if you can do just a PL/PD coverage like you've got on that '73 Vega that would cover you for the important stuff, like if you run in to somebodies boat that has a lot more zeros after the six.

PBzeer · #4 (**permalink**) 02-13-2007

Most marinas will require a minimum amount of liability coverage for renting you a slip. I don't really think it would be worth it to have anything more than that. As suggested, check with your car insurer, I have liability on a 32 footer for less than $125 a year.

Razman23 · #5 (**permalink**) 02-13-2007

I agree, nearly all marinas want insurance coverage just in case........as in just in case, your boat catches fire and burns down half of the marina.

Before you buy your boat, check the slip fees for your size boat. People have been known to buy and boat and then have a heart attack when they find out how much it will cost them to tie it up in a slip.

Im in the same boat as you. The last two boats I had, I purchased in cash. Now Im looking for my third and probably might end up financing it. :O(

tha3rdman · #6 (**permalink**) 02-13-2007

Check your homeowners policy, Were with USAA, they (as most do) cover vessels up to 26 feet, and less then 50 horse I/B or O/B. It's really only good for liability, to cover theft it has to be on your property. Check into it. Even it they don't they maybe able to amend a policy to it for a few bucks a month. It cover your A$$ should you or your boat run over a new expensive boat, or a friend of a friend of a friend falls off and sues ya.

It's best to have at least liability.

Keyne · #7 (**permalink**) 02-13-2007

USAA up to and including 26 feet? Looking to buy a boat for cash that is 26 feet we also have USAA home owners and auto insurance. I am not looking to insure the boat, just liability.

KD

tha3rdman · #8 (**permalink**) 02-13-2007

Quote:

Originally Posted by Keyne

USAA up to and including 26 feet? Looking to buy a boat for cash that is 26 feet we also have USAA home owners and auto insurance. I am not looking to insure the boat, just liability.

KD

Best thing to do is call them, but when I did yes our policy covered a boat not more the 26 feet LOA, and not more the 50 Hp with an inboard or outboard. As my understanding goes the coverage limits are the same as if the person or property was injured/destroyed at your home, example ours is 100k/500k so we can run over a pretty big boat

, the people at USAA are nice to talk to just call them, they can give you a better run down of your policy.

duffer1960 · #9 (**permalink**) 02-14-2007

I had a late 70's 20 foot sailboat that I paid only $1000.00 for in '91. Because of that, I didn't insure it. My reasoning was I would never do anything stupid enough (and I never did) to warrant needing insurance; I knew how to sail, I grew up on boats, added a VHF, depth sounder and Loran. Component failure never occurred to me. One day back in '97 a lower shroud snapped while close hauled. The mast proceeded to fold in two and fall over the side. Unfortunately having just got married and bought a house, I had no cash to buy a new mast. If I had insurance, I could have afforded the deductable and bought a new mast. She sat behind my garage until last summer when I finally sold her, mastless.
The only good thing out of all of this was it showed us we needed a bigger boat. We now have a 38 footer.

sonofasailorsailing · #10 (**permalink**) 02-15-2007

When we had our 22 foot Chrysler, I called USAA about insurance. They told me that it was already covered under my current homeowners policy so we didn't have any extra out-of-pocket. Now we own a 33'er and we have liability insurance on her. Our marina requires a minimum of $100k liability. We got $300k just because there are alot of big expensive boats in our marina and I feel it is better safe than sorry. Our first year premium was $133. We just renewed for our third year and it was $197. Since all of our insurance is through USAA, we called them but they don't handle that type of insurance directly. They put us in contact with Drive Insurance. Except for them being a little lax in their billing policies (they seem to forget to send out renewal notices), we have been happy.