Out of sate boat insurance

cochrun · #1 (**permalink**) 12-02-2008

I have looked in the archives but have found no information that specifically addresses my issue. If I missed it somewhere, I'm sorry for posting again.

I am new to boating and I am trying to do my homework before making a purchase. I live in Colorado and plan to buy 38 - 42 sailboat ($200k budget) to be kept in the Galveston, TX area. In an effort to understand insurance rates and coverage I have contacted several insurance companies. One flat out refused to quote insurance on a boat kept out of state. Another insisted that I contact an agent in Coloardo for the quote. This seemed odd to me as agents in Colorado really know nothing about 40 foot boats or the Galveston area. Only one (well known) company has actually provided a quote the covers named storms and does not care about the multi-state issue - but their rates seem a bit high. I have also been told that their rates are well above average.

Has anyone solved this multi-state issue? What companies will issue policies for an owner in one state and a boat in another. What rates are common/reasonable based on boat value? What else do I need to know about insurance on the Gulf?
Thanks,
Dave...

sailingdog · #2 (**permalink**) 12-02-2008

Give Christine Hartge, at Hartge Insurance, in Annapolis a call. She deals with boats in a lot of areas of the country.

The main problem with keeping a boat in an area like Galveston, is the HURRICANE problem.

JohnRPollard · #3 (**permalink**) 12-03-2008

Quote:

Originally Posted by cochrun

Has anyone solved this multi-state issue? What companies will issue policies for an owner in one state and a boat in another.

Boat/US will. So will USAA.

WouldaShoulda · #4 (**permalink**) 12-03-2008

Quote:

Originally Posted by cochrun

I am new to boating and I am trying to do my homework before making a purchase. I live in Colorado and plan to buy 38 - 42 sailboat ($200k budget) to be kept in the Galveston, TX area. In an effort to understand insurance rates and coverage I have contacted several insurance companies. One flat out refused to quote insurance on a boat kept out of state.

Think about it...

1. A new boat owner buys a 40ft sailboat.

2. Keeps it more than a six hour car ride from his home.

3. In what's left of Galveston, TX after Hurricane Ike.

Be prepared to pay A LOT!!

Or better yet, alter your plans. When insurance companies say "no" sometimes it isn't them, its...

xort · #5 (**permalink**) 12-03-2008

It is pretty obvious...you are considered an absentee owner and chances are greater that you will not be around very much to tend to the boat. add galveston to the mix and you're SOL.

sailingdog · #6 (**permalink**) 12-03-2008

Hell, even by air, the trip from Colorado to Galveston, TX is probably more than six hours—if you account from door-to-slip.

Quote:

Originally Posted by WouldaShoulda

Think about it...

1. A new boat owner buys a 40ft sailboat.

2. Keeps it more than a six hour car ride from his home.

3. In what's left of Galveston, TX after Hurricane Ike.

Be prepared to pay A LOT!!

Or better yet, alter your plans. When insurance companies say "no" sometimes it isn't them, its...

cochrun · #7 (**permalink**) 12-04-2008

Quote:

Originally Posted by JohnRPollard

Boat/US will. So will USAA.

Hi John,
Boat/US was the one I was told had very high, above average rates. My home insurance is with USAA, so that is where I went first. They don't do boats in the 40' range and transferred me to another company that was just not really interested in my business and cited the out of state issue as being a real problem that they would not deal with.
Dave...

JohnRPollard · #8 (**permalink**) 12-04-2008

Quote:

Originally Posted by cochrun

Hi John,
Boat/US was the one I was told had very high, above average rates. My home insurance is with USAA, so that is where I went first. They don't do boats in the 40' range and transferred me to another company that was just not really interested in my business and cited the out of state issue as being a real problem that they would not deal with.
Dave...

Hi Dave,

We insure with Boat/US and have found their rates to be competitive -- at least they were when we made the decision to go with them. Haven't shopped around lately -- but the price has remained relatively steady so we haven't felt a need to.

cochrun · #9 (**permalink**) 12-04-2008

Quote:

Originally Posted by WouldaShoulda

Think about it...

1. A new boat owner buys a 40ft sailboat.

2. Keeps it more than a six hour car ride from his home.

3. In what's left of Galveston, TX after Hurricane Ike.

Be prepared to pay A LOT!!

Or better yet, alter your plans. When insurance companies say "no" sometimes it isn't them, its...

New boat, yes -I have to start somewhere. Didn't everyone have a first boat? I'm 61. I could start with a small day sailer and move up every couple of years. By the time I'm 75 I could move into a 40 footer and have someone wheel me aboard. I wish I had started earlier with boat ownership but I didn't. I have sailed before. Newport, RI; Pensacola, FL and Guantanamo Bay, Cuba. I am retired Navy and probably have more navigation and chart reading experience than most current boat owners, but I don't have ownership experience.

More than a six hour car ride from home - yes. Where would you put a 40' boat in the Denver area? I don't want to go in circles on a pond. I considered the Great Lakes. Fresh water is a plus but the season is short. From Colorado I don't want to go sailing somewhere that is colder than Denver. I would prefer to extend my summer rather than shorten it. Where else can you go from Colorado that isn't at least a six hour car ride?

Galveston TX after IKE - yes. Would it have been better to buy the boat before IKE? Anywhere you go on the coast you take a risk. Just becasue Galveston took the most recent hit doesn't mean it will get the next one too. It may be 50 years or next season - who knows? I'm not complaining about insurance, just looking for a reasonable rate given the risk. Why Galveston? I have family that lives on Galveston Island (Sea Isle - west end of the island) so I go there frequently. They can also visit the boat periodically when I'm not in town to keep up maintenance and take care of other issues that pop up. While there may be other locations farther north on either the east or west coast that have less risk than the Gulf, they are farther away (longer car ride) than Galveston and they don't come with built in caretakers (family).

I am not dead set on buying a boat. I am in the investigation phase. It may very well turn out that it is not practical. I'll be in Galveston again in a couple of weeks. I have two missions. One to look at boats. Two, to help with repairs on the house following IKE. Thanks for your input.

Dave...

WouldaShoulda · #10 (**permalink**) 12-04-2008

Quote:

Originally Posted by cochrun

I am not dead set on buying a boat. I am in the investigation phase. It may very well turn out that it is not practical. I'll be in Galveston again in a couple of weeks. I have two missions. One to look at boats. Two, to help with repairs on the house following IKE. Thanks for your input.

Dave...

If I had a second home there I'd consider a small daysailer, If I had my heart set on a larger boat, I wouldn't spend more than I could afford to lose, insure for liability only and self insure the hull.

Best of luck with rebuilding!!