From a BoatUS Insurance Underwriter
As a boater, I sympathize with you on your gripes! Watching your premiums rise year after year is disheartening and aggravating! As a BoatUS marine insurance underwriter, I can also pass along a different perspective on certain issues. Regarding the obvious (and understandable!) worry about not being covered for an "act of God", all that is required is a bit of research before binding with any company. Damage from hurricanes is something that BoatUS covers. Sure, it's a natural phenomenon, and something that devastates focused areas. But BoatUS covers it nonetheless (that's a major reason why insurance in coastal Florida is the highest in the country). NOTE: CHECK WITH YOUR AGENT TO SEE IF YOU HAVE A SPECIAL "STORM DEDUCTIBLE". Some companies charge less because they have some outrageous deductible (usually $10,000) applied when any claim can be attributed to weather. Between Isasbel, a bitter winter across the country, the California wildfires (smoke damage occurred many miles from the actual fires), 2003 was a nasty, nasty year for claims payouts. Unfortunately, the ugly reality of insurance is that costs get passed along to the insureds (it hurts us all). I don't know if this makes you feel any better, but hopefully it helps to shed light on another perspective. Now, regarding claims not being paid, I am curious as to what companies did not pay during a hurricane. Barring an outrageous storm deductible, hurricanes are a major reason WHY you get insurance in the first place! As an example, (okay, time to toot the BoatUS horn here) on Saturday morning after Isabel, I drove out to Herrington Harbor North, in Deale, MD, to see if the family boat had survivded the night (it had been hauled on Wednesday or Thursday). Luckily, it had survived, but several of the docks (mainly the ones directly facing the open bay) had been destroyed, as well as the boats that had been attached to them. I arrived at about 11 am. Walking down a dock that had survived, I was thigh-deep in water, and saw that BoatUS had already come and gone from that dock. The stickers that we use for disaster areas were on the hulls, showing that they had been seen, and checks had been written. There were dozens of boat owners there who had no idea what to do. They couldn't even get a hold of their insurance companies. I saw a few adjusters there (their companies will remain nameless) from companies that primarily insure cars, and they had no idea how to gauge the extent of damage to a boat! My advice is to shop around. Get rates from as many companies as you can, make sure they're comperable (actual cash value or agreed value), and that seemingly minor coverages are offered on both (such as uninsured boater protection, or fuel spill liability coverage). Boat insurance isn't cheap, but at least you'll know that you're getting the best deal for your hard-earned dollar. In closing, just remember this ... your premium amount doesn't mean squat if your company isn't there when you need them. Make sure your primary concerns are covered (hurricane coverage with no special deductible, theft coverage, salvage coverage, etc.) and that people who have HAD claims with a company were satisfied with how it was handled. Talk with others at your marina to get their take on how they've been treated at their company.
