[sab30]

Tried to price out insurance on couple of boats we are looking at. Even though the boat will be purchased and kept in the US as a home port, I have to purchase insurance in Canada.

I spoke to one broker who stated $4000 a year for $250,000 coverage (3 yr old 43ft boat) which would cover all West Coast (Canada to Panama) $5,000 deductable and $1,000,000 liability. Does that seems reasonable? I questioned whether this could be shopped and she said there are cheaper premiums but the wording is too restrictive for an international policy of this nature. It was offered by Lloyds and Im wondering if anyone else has experience with a good company (ies) for comparison in Canada?

Oh and she also mentioned that some companies like Mexico wont allow certain boats in from certain companies until you puchase mexcian insurance???? She said that because Lloyds was well accepted and known this wouldnt be the case with them....sounded suspicious..maybe not....maybe someone could confirm if this is true or not.

Thanks....

 

[wolfshead13]

Tried to price out insurance on couple of boats we are looking at. Even though the boat will be purchased and kept in the US as a home port, I have to purchase insurance in Canada.

I spoke to one broker who stated $4000 a year for $250,000 coverage (3 yr old 43ft boat) which would cover all West Coast (Canada to Panama) $5,000 deductable and $1,000,000 liability. Does that seems reasonable? I questioned whether this could be shopped and she said there are cheaper premiums but the wording is too restrictive for an international policy of this nature. It was offered by Lloyds and Im wondering if anyone else has experience with a good company (ies) for comparison in Canada?

Oh and she also mentioned that some companies like Mexico wont allow certain boats in from certain companies until you puchase mexcian insurance???? She said that because Lloyds was well accepted and known this wouldnt be the case with them....sounded suspicious..maybe not....maybe someone could confirm if this is true or not.

Thanks....

I have a 25 footer and its insured with CAA. Their only requirement was a survey and it is coverage for anywhere in the world. The value for my boat is quite different (7800.00)cdn with $500 deductable and 1,000,000.00 liability bit it runs $250.00 a year.

 

[Faster]

We pay about 1%... ie $500/yr for 50,000 coverage. If that's "standard" then the rates quoted you seem quite high.

We are coastal cruisers, and do have navigational limitations, but a couple of years ago we wanted to go beyond them, and call the carrier to arrange a rider... there was no need, they simply wanted to be informed if we were planning to travel outside the standard area.

I'd think you could "shop around"... I'm curious why you are required to buy Canadian insurance....

 

[sab30]

We pay about 1%... ie $500/yr for 50,000 coverage. If that's "standard" then the rates quoted you seem quite high.

We are coastal cruisers, and do have navigational limitations, but a couple of years ago we wanted to go beyond them, and call the carrier to arrange a rider... there was no need, they simply wanted to be informed if we were planning to travel outside the standard area.

I'd think you could "shop around"... I'm curious why you are required to buy Canadian insurance....

Im told by everyone that unless Im a US citizen then I have to purchase in Canada as a Canadian/UK citizen. Boat will also be registered in Canada.

 

[sab30]

I have a 25 footer and its insured with CAA. Their only requirement was a survey and it is coverage for anywhere in the world. The value for my boat is quite different (7800.00)cdn with $500 deductable and 1,000,000.00 liability bit it runs $250.00 a year.

Hi Wolf..

Yes looked at CAA but $150,000 max. policy

 

[AdamLein]

You haven't explicitly stated that you need offshore coverage for the west coast. I suspect that's one of the biggest factors affecting price, so if you don't actually have a specific plan in mind to sail to San Diego this year, go with the "restricted" coverage for $500 or so.

My broker is HUB International and they found me coverage with a price tag I could tolerate a lot better than what you were offered. I was specifically looking for something that wouldn't have to be completely redone if I moved the boat to Canada... not exactly your situation but same universe.

 

[Faster]

Im told by everyone that unless Im a US citizen then I have to purchase in Canada as a Canadian/UK citizen. Boat will also be registered in Canada.

Ah, I see.... we currently have some friends cruising Mexico - 2 different couples, actually.... Next time I'm in contact I'll try to find out what they've done. Both left BC last August and are now in the PV/Manzinillo area.

 

[TSOJOURNER]

I would expect that cruising insurance on a boat that is valued at $250K would be somewhere around $3K/annum. Insurance for coastal use should be 1% of agreed value, and I am under the impression that the offshore rider would be about $1K - but I might be low on that.

It seems the liability that you have been quoted on is low - a lot of marinas and clubs want 2 million coverage to let you tie up.

 

[sab30]

You haven't explicitly stated that you need offshore coverage for the west coast. I suspect that's one of the biggest factors affecting price, so if you don't actually have a specific plan in mind to sail to San Diego this year, go with the "restricted" coverage for $500 or so.

My broker is HUB International and they found me coverage with a price tag I could tolerate a lot better than what you were offered. I was specifically looking for something that wouldn't have to be completely redone if I moved the boat to Canada... not exactly your situation but same universe.

The broker I talked to stated that as soon as the boat leaves local waters (ie south of Seattle) they process as a bluewater application...bluewater or not...

Im gonna check with Hub...had them before and they did a good job..I thought $2500-3000 would be fair...

 

[AdamLein]

Yeah, my warranty with Hub lets me go somewhat down the Washington coast and all the way up to Alaska. Check them out.

Also I'd second Sailormann's point about liability requirements... $1M or $2M is what I'd heard in most places around Puget Sound I stopped.

 

[killarney_sailor]

Perhaps US residency matters

Im told by everyone that unless Im a US citizen then I have to purchase in Canada as a Canadian/UK citizen. Boat will also be registered in Canada.

We are Canadian citizens living in the US and the boat is registered in Canada but we have US insurance through IMIS in Annapolis. Perhaps the need is for American residency rather than American citizenship.

 

[tigerregis]

Richard Schwartz of BoatUS told me that they could insure my boat in the US but could not sell it to me in Canada. That is because they are not licensed to sell in Canada. You need to talk to an American broker who knows what he/she's doing.

 

[GreatWhite]

I have a Canadian registered boat kept in Mexico. I bought my insurance through an American (US) company: Mariner's general insurance group in California. I pay about 1.5% of my hull value. This was a first time with a big boat, ocean going vessel for me so maybe the rate was higher. No claims yet (knock on wood!) so maybe I can get the rate down. I don't see why you couldn't buy your insurance from an American Company? I haven't made a claim but I don't think I am the only Canadian using an American (US) insurance company for cruising. I heard Jackline was cheaper for more experienced/full time cruisers. The rate they quoted me was higher.

 

[Valiente]

Im told by everyone that unless Im a US citizen then I have to purchase in Canada as a Canadian/UK citizen. Boat will also be registered in Canada.

It's the last bit that likely matters: that you are federally registered. So am I, and I have dual U.K./Canadian citizenship, even though our 41-footer is jointly owned and registered between my wife and myself (she's Canadian only).

Our insurance is only $1,450/year, but this is the Great Lakes, where the season is seven months, and I only have coverage for $150,000, because it's a custom boat and the replacement cost of $350,000 diverges strongly from what it commands on the open market (close to what we've insured it for). Also, it would have to be an extraordinary storm to wreck our boat...not to mention there are few shores rocky enough around here to tear the boat up.

Our policy is essentially "Canadian coastal", which means they want to know if we are going to Newfoundland...otherwise, good to go to Nova Scotia, say.

When I mentioned we were staying on the hard for hull work this year, I saved $300.

So while $4,000/year for $250,000 that includes offshore sounds high, it doesn't sound radically high. Have you considered raising your deductible?

I am torn on whether or not the value of insurance is worth it. I would tend to want to put that sort of money into medical insurance and a Yachtmaster course or two and let the boat take care of itself. Unlike many others considering going offshore, we will not have "everything we own" aboard, and in fact will not be taking much in the way of keepsakes for the very reason that I don't want to be anything other than relieved if we have to get into a liferaft.

 

[Faster]

..... will not be taking much in the way of keepsakes for the very reason that I don't want to be anything other than relieved if we have to get into a liferaft.

That's a great point of view, Val.... love it.

 

[sab30]

It's the last bit that likely matters: that you are federally registered. So am I, and I have dual U.K./Canadian citizenship, even though our 41-footer is jointly owned and registered between my wife and myself (she's Canadian only).

Our insurance is only $1,450/year, but this is the Great Lakes, where the season is seven months, and I only have coverage for $150,000, because it's a custom boat and the replacement cost of $350,000 diverges strongly from what it commands on the open market (close to what we've insured it for). Also, it would have to be an extraordinary storm to wreck our boat...not to mention there are few shores rocky enough around here to tear the boat up.

Our policy is essentially "Canadian coastal", which means they want to know if we are going to Newfoundland...otherwise, good to go to Nova Scotia, say.

When I mentioned we were staying on the hard for hull work this year, I saved $300.

So while $4,000/year for $250,000 that includes offshore sounds high, it doesn't sound radically high. Have you considered raising your deductible?

I am torn on whether or not the value of insurance is worth it. I would tend to want to put that sort of money into medical insurance and a Yachtmaster course or two and let the boat take care of itself. Unlike many others considering going offshore, we will not have "everything we own" aboard, and in fact will not be taking much in the way of keepsakes for the very reason that I don't want to be anything other than relieved if we have to get into a liferaft.

We did look at a higher deductable and may bring the replacemnet value down a little. We do require the liability as others have mentioned for the marinas..more importanly I did contact Boat US who stated that there is NO problem with purchasing insurance it the US as long as we have a US address which which will. Im going to get a detailed quote from Boat US and compare with other insurance providers..do they have a good reputation for underwriting yachts?

 

[Valiente]

Again, some years ago there was a detailed article in Practical Sailor showing sample quotes for different areas in the States from the top three insurers. They differed significantly as I recall, so caveat emptor.

 

[sab30]

Again, some years ago there was a detailed article in Practical Sailor showing sample quotes for different areas in the States from the top three insurers. They differed significantly as I recall, so caveat emptor.

Thanks again...do you recall who they listed as the top three insurers? Or who the community as a whole would list as the top 3? Im not so much worried about the cheapest insurer but would like to begin with well established companies with a good record when it comes to dealing with claims etc. Im going to do some comparisons with US brokers and thought that would be a good place to start. Then I can compare that to their Canadian counterparts.

 

[rikhall]

If you are a CPS member - check the price of Cowans They give some pretty good discounts for CPS courses taken.

 

[Valiente]

The April 2006 issue talks about insuring a typical "Catalina 36" in hurricane-prone Florida, and the companies quoted are International Marine Insurance Service, Boatus, National Marine Underwriters, and Offshore Risk Management.

You can order a reprint or check it out in a library. Good, long article.