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Go Back   SailNet Community > General Interest > General Discussion (sailing related) > new boat: insurance question
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Thread: new boat: insurance question Reply to Thread
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Topic Review (Newest First)
06-02-2011 07:32 PM
casey1999
Quote:
Originally Posted by IronSpinnaker View Post
You sail without Sea Tow?
I also have sea tow. I have spoken to the guy in charge of towing. He seems pretty good. But sea tow is only for light groundings, not on rock or coral, that is salvage (although the sea tow guy seems a little lienient on this). My insurace also covers $500 towards tows. I sail in Hawaii, and there really is no such thing as a light grounding. Any damage to your boat (including a demasting) at sea could turn into a salvage. Salvage cost can be very high- into the thousands of dollars as the tow could be 75 miles in open ocean (35 knot winds and 15 foot breaking seas not uncommon in the channels between islands). I try to maintain the boat as best I can, but also want some insurace to cover salvage in case I need it. Even a minor problem could cost you your boat, and salvage cost could easily meet or exceed the cost of your boat. What would your insurance company do if the estimated salvage cost of your boat is more than the boat is worth? Would they just leave it adrift at sea (after you were picked up by coast guard)?
06-02-2011 07:25 PM
IronSpinnaker
Quote:
Originally Posted by casey1999 View Post
I also have progressive. One question I am unclear of is say I am aground and and getting ground on a coral reef with little time before the vessel is a total loss. Do I call the insurace agent and try to get them to get a salvage company to help me or do I try to find one myself?
You sail without Sea Tow?

We once had a large cherry tree that was dieing and going to fall on the house and called our homeowners agent to ask about getting it taken down. They told us to call back after the tree went through the house. About a year later the tree fell, hit the house and rolled only taking off a few shingles and the gutter, want even enough damage to call the agent back on.... That is the bet your insurance agency is going to hedge against your grounded boat.
06-02-2011 06:29 PM
casey1999 I also have progressive. One question I am unclear of is say I am aground and and getting ground on a coral reef with little time before the vessel is a total loss. Do I call the insurace agent and try to get them to get a salvage company to help me or do I try to find one myself? What if I am out of cell range and can only reach the coast guard by radio, what happens then. If I give the ok to a salvor to save my boat will Progressive pay up to the value of the insured value of the boat?
Thanks
06-02-2011 05:16 PM
sandycohen After doing much research on insurance for a boat of questionable wisdom on whether to carry comprehensive, I went with Progressive. They offer agreed hull value, without a survey, above the purchase price (ie you can make money on the insurance in a loss), for less than anyone else and what I thought to be a reasonable gamble.

This is in New Orleans where the insurance market may not be a good indicator of what would be found elsewhere.
06-02-2011 02:33 PM
ColinJ I just wanted liability insurance on my T22 since I only paid 4k for it. I found out due to the size of the boat, motor and value that it was covered under my house insurance.

Here is actually the exact quote

"The liability is automatically included on your homeowners at no additional charge (goes by length and HP and type of motor). To coverage the boat and accessories at $4200 for the best coverage is $168 per year."
06-01-2011 10:20 PM
Minnewaska Get a good local agent that can compare several different coverages with you. While each State can be different, some of the above advice is not accurate where I am from.
06-01-2011 10:02 PM
TropicCat That's less than I pay for liability through Progressive..
06-01-2011 08:01 PM
carl762
Quote:
Another consideration... If the total value of the boat is only $4,000, do you need to insure it at all? If it was a total loss, could you afford it? I'm assuming it is paid for and there is no loan on it.
I paid $4,000 for my boat and motor. Safeco insures it for boat/motor loss, medical per occurrence, onboard equipment, etc., and most importantly, liability ($500,000) for $23 a month. $250 deductible. To me, that's a great deal.

I don't have the cash to go out and outright buy another $4,000 boat in case I lose this one. I'm Po People.
06-01-2011 07:28 PM
TropicCat If you're in a marina, I'd recommend that you buy the minimum liability insurance you can to satisfy your contract with the marina.

If not in a marina, I have to ask why do feel you need insurance on a $4K boat?
06-01-2011 12:01 AM
hellosailor Charrob, many insurers like to play a game with valuation and premiums. They'd like you to pay a premium based on the highest value, so you pay them the most money.

Now what happens if they have to pay out a total loss? Depending on your stat insurance regulations, and your insurance policy (yes, you really have to read all that painfully small print, and they do actually intentionally make it hard to read) you may only be entitled to "book value, replacement or market value, or xxxxx, whichever is least". And those terms will usually be defined by state law, but oddly enough, the insurers often don't follow the definitions because they know that most customers won't know what the laws require, either.

So now you've paid for $10k of insurance, and they'll say "Well, we found one for sale two counties over for $3500, so that's what we're paying you."

This is not my opinion, this is the voice of experience with how insurers have actually behaved, and how state laws do and don't force them to play nicely.

So if they think it is worth $10k, that's great. But unless they are writing "agreed value" coverage, where they agree to pay you $10k in the event of a total loss, demand a sample policy and look for the gotchas. They're all very reluctant to provide a sample policy.

And even with "agreed value" some of them like to play games. I spoke to a Progressive rep about that (for a car) and he eventually admitted they write coverage "for the agreed value or the replacement cost, whichever shall be less".

These are not your friends. By all means shop, but remember that their only interest is making your money into theirs, and not giving back any more than they have to. The ones who deal most fairly? Still want all your money, they're just sharp enough to know that by playing nice, they can keep the customer longer, or for life.
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