Boat insurance

[zz4gta]

Just bought a 1984 merit 25 and need to insure it. Any fair prices out there? One place had quoted me online a good cheap price but then when I called said they couldn't insure it b/c of the low price I paid for it compared to the book value of the boat.

I checked out Progressive and that was a joke (way to high). Now I'm getting a quote from Boat US. Please let me know if you have this insurance and are happy with it, or would you recommend something else. Thanks.

[FrankLanger]

It helps to compare policy coverage very carefully for things like amount of deductible, extent of coverage, replacement vs. depreciated value, towing coverage, etc.--lots of shopping around can save you money while still getting good coverage.
Frank.

[sailingdog]

Don't forget to check for salvage coverage and environmental remediation cost coverage.

[zz4gta]

SD, I'm not familiar with those things you mentioned. Could you elaborate please?

[DrB]

I went through BoatUS for our insurance. A couple of reasons:

1. Progressive wouldn't touch a 1979 Vintage Boat (At least ours). Other companies had the same response.
2. This is our first boat, so there are some companies that didn't want to take on "Newbie" sailors/boat owners
3. We got a discount on the BoatUS membership with our insurance.
4. The application/approval was painless. Pretty much over the phone and then fax in the survey.

Our policy is only effective from Jacksonville, FL to Nova Scotia. No extensive offshore stuff, just coastal.

We pay about $850/year for a 79 Pearson 10M that is moored in Massachusetts. I am hoping next year to shop around now that we have a year under our belt for better pricing.

DrB

[sailingdog]

Salvage coverage is that your insurance company will pay salvage costs if you need to raise your boat, in the case that it sinks... for instance. Salvage costs are typically far higher than towing costs.

Environmental remediation costs are things like paying for the fuel spilled when your boat sinks. Otherwise, the EPA comes after you with some monster huge fines... Think Exxon Valdez.

[zz4gta]

I just got done with the over the phone application with BoatUS. The other places I tried to use didn't want anything to do with a 1984 boat.

When you faxed in the survey, was that the online application or did you actually get a survey of the boat done, and faxed that in?

[zz4gta]

Oh, ok. Thanks SD.

[DrB]

We had the survey done first, to see if we actually wanted the boat. Once the survey went through and we found no deal breakers, we signed the P and S and closed the sale. Then I faxed in the survey or at least the last two pages with the valuation, serial number, and recommendations that the surveyor suggested.

DrB

[pegasus1457]

Originally Posted by DrB

I went through BoatUS for our insurance. A couple of reasons:

1. Progressive wouldn't touch a 1979 Vintage Boat (At least ours). Other companies had the same response.
2. This is our first boat, so there are some companies that didn't want to take on "Newbie" sailors/boat owners
3. We got a discount on the BoatUS membership with our insurance.
4. The application/approval was painless. Pretty much over the phone and then fax in the survey.

Our policy is only effective from Jacksonville, FL to Nova Scotia. No extensive offshore stuff, just coastal.

We pay about $850/year for a 79 Pearson 10M that is moored in Massachusetts. I am hoping next year to shop around now that we have a year under our belt for better pricing.

DrB

I was a Boat US customer for 10 years. Last year I had a claim for damage which occurred at the dock. I was in for an unpleasant surprise. It turns out the standard BoatUS Yachtsaver policy is based on "actual value", which they interpret as whatever you valued the boat at when you first insured with them, minus 10% per year depreciation. A repair is broken into 2 parts, labor and parts. The parts are depreciated with the same formula as the hull value. So after 9 years with them, I got 10 cents on the dollar for the parts required. I was lucky, since the cost of the repair was almost entirely labor (all fiberglass work), but it was an eye opener.

I bought a "new" boat this year, a 1980 Pearson 32, and insured it at "agreed value" which means the hull does not depreciate nor do the parts required to fix any damage.

Interestingly enough, the best deal I found was with Progressive, using Gowrie Barden & Brett as the agents.
I had a few underwriters who didn't want to touch the boat, either because of its age, or because of the survey report which had a list of problems to be corrected. But Gowrie was able to get me through all of this, with a premium of $630. Coverage is for 75 miles off the Atlantic shore of the US, including Florida, and Canada.

I don't think I will go back to BoatUS for insurance again.

But when you buy insurance, look at the worst possible liabilities first: environmental damage can run as much as $500,000. Injury to a passenger or damage to another boat can be expensive. Maybe the least worrysome is damage to your own boat, unless you have just boat a brand new boat.

Another technique is to fax the quote from one underwriter to the agent for another company. Tell him "this quote is cheaper than yours. What is wrong with it?" A good agent will be able to show you the holes in the coverage offered by another company. It is a good way to educate yourself.