Boat Insurance Question

[Gary Wyngarden]

I received my annual renewal from my insurance broker today. It contained a bit of a surprise in that the company requires a minimum hull deductible increase from 1% of the insured value to 2% of the insured value because my boat is now 15 years old.One might think that would be accompanied by a decrease in premium, but the premium went up by 11% as well. I've been with this broker/insurer combination for eight years with no claims. My boat is in superb condition.Is this normal? Have others experienced this increase in hull deductible based on age? Are there still more increases ahead as my boat gets older? Or do I need to start looking for a new insurer? The increase would perhaps be less important other than the fact that they usually double the hull deductible in a rider when we go outside the geographic limitations of our policy as we will again this year on the West Coast of Vancouver Island.I would appreciate your input.Gary WyngardenS/V Wanderlust h37.5

 

[higgs]

New to me

In 30 years of ownership, I have never encountered anything like what you describe.Contact boat US - you will need a recent survey, but they are reasonably priced.

 

[Warren Milberg]

Gary -- I think

... at least part of the reason for your increase, at least in the premium part of it, has to do with the tremendous hits most marine insurers have taken due to all the hurricane damage. We are all paying for that. We all know what flows down hill.... But as suggested by Higgs, I'd shop around and compare prices. I use, and like BoatUS insurance. When I bought my current boat it was over 15 yrs old and did not require a formal survey to obtain BoatUS insurance (although I had one done for my benefit anyway). Rather, BoatUS sent me a form to fill out and asked that I send them a variety of pictures of the boat.

 

[John]

State Farm Insurance

We took out a State Farm policy when we bought our 31 year old boat last year for the full surveyed value amount. Cost us $604.00 a year. Just got our renewal notice and our renewal cost was $530.00. Go figure. I thought sure it would have gone up, but was pleasantly surprised. Boat US would even talk to us because of the age of the boat.

 

[seadaddler]

Boat US Quot

I called boat us for a quot on my new hunter 36 and it was $1600 per year,needless to say I called others and happy with progressive at $800 per year.I could have got cheaper with my old co. but wanted progressive for when I move to florida next year.

 

[Don S/V ILLusion]

What coverage is included????

Everyone mentioned the name of the underwriter but no one has described the type and extent of coverage included so it's unreasonable to compare.For example, what is the deductible, is is replacement cost or ACV (actual cash value),etc... Anyone can get a cheap(er) ACV policy with a high deductible but is that what you'd want in the event of a large loss?A policy which goes down in premium typically also means your coverage changed...Gary - one of my in-laws writes boat policies and what you found is typical of older boats.

 

[Don s/v Tellico]

Gary...we have the same boat.

I've been with BOATUS since the beginning, and just got my renewal, and breathed a sigh of relief when I opened it. No increase over last year. Granted, my standard cruising grounds are the Chespeake and inland waters, not the wilds of the Pacific that you sail. I've gotten riders or changed the area with Boat US when I go south, and it costs - ouch. But my point, ableit poorly put, is that I've not had any adjustments because of age ('93 37.5). I've had the same agreed hull value since I bought her.

 

[Fred]

State Farm Is at the top of the list of Bad

insurance companies. Allstate is nearly as bad. The last thing you need is a company that is not there for you when you need them. Insurance brokers represent you when you use them. At least get a quote from an insurance broker before you sign with someone who sells for a particular company.That said, I haver heard good things about Boat US and how they treat customers in trouble.Great link below to check on a particular company.

 

[Tim R.]

Amica

I use Amica for everything. Home, boat, cars, etc. They include unlimited towing for boats. I asked them why and they said it was better for them to pay for a tow than to pay a claim if the boat was damaged as a result of being disabled. Makes sense. They have always treated me with respect. I once had a car totaled and we disagreed on the fair value of the car; I am a nut with maintenance and my 12 year old Audi looks better than most people's 2 year old cars. I showed them photos and maintenance records and they agreed the car was worth more than what their books said and I got an extra $2,500 from them.Another nice thing is that you deal directly with them. No middleman needed.Tim R.

 

[Manny]

I have State Farm...

for my home, auto, and boat insurance. I had my first car accident in 20 years last month and they took care of everything quickly and without any hassle whatsoever. My agent even called me on Christmas Day to make sure everyone was okay.Anyway, where getting off topic here but no surprise increases so far after two seasons on the premium for the boat.Manny

 

[BrianW]

Progressive in Florida

I use Progressive for my 1994 Hunter 26 in Pensacola, FL. After the last 2 hurricane seasons, State Farm and Allstate abandoned us for insuring our homes, so I figured they don't want my car, boat, disability or life insurance either... so I dropped all but my life insurance (hard to get at 55 years old). I have been covered by Progressive for 3 years. My first year, I WAS paying $400 ($500 deductable for $20,000 Agreed Value) per year before I had a claim from Katrina for moderate damage. They paid a $6,500 claim without a hitch. It paid for all repairs. When my annual renewal arrived in the mail a couple of months ago, I held my breath. They actually LOWERED my premiums and deductable!.... and no coverage reductions. Here's what I have:$20,000 Agreed Value for Comprehensive and Collision)$342 annual premium (if entire premium is paid in one payment) $375 deductable Personal items - , Replacement costWreckage removal, & electronics - $500 deductable Liability to others (damage, fuel spill and injury) - $300,000In summary, Im very satisfied with Progressive. BrianW

 

[Warren Milberg]

For Fred re BoatUS

In over 30 yrs of sailing, I never had an insurance claim until Hurricane Isabel came along and wiped out 4-5 docks at my marina. My last boat was at one of those docks and got totaled in the process. Hundreds of boats were either damaged or sunk by that storm. My insurer, BoatUS, had a team of adjusters, who were professional surveyors, on site within 3 days. They found damage to my boat that I missed in my own critical inspection. They got estimates from repair contractors who were overwhelmed by the demand and who charge for estimates. In the end, I had a check in hand for the full insured value of my boat in about a month. I thought that to be amazing. Some friends, who had insured their boats with the companies that mostly insure cars and houses, where still dickering with their insurers many months later. My vote goes to BoatUS without question.

 

[Daryl]

BoatUS is INSANE!

Every few years I get annoyed with their junk mail and ask for a quote. Their best quote was DOUBLE the premium I pay with other insurers. The West Marine pricing mentality is clearly used by BoatUs

 

[Fred Ficarra]

Interesting Warren and Fred

Let me say this; Insurance is gambling. You are forking over your cash into a pot betting that you will lose. The insurance company is taking your cash and betting you won't. When you do lose, well, that makes for the reading posted here. I've heard nothing but good about BoatUS insurance. I tried to insure with them when I finished the rebuild of my boat. Even obtained a survey and documented value and thusly called them. They wanted to know my boat model. Then they looked in their 'book' and recited a figure for the value of my boat. It was less than half of my survey. NO AGREED VALUE. They were betting the pot using the filtering principal. Oh well. I called Allstate. Added the boat to my other coverage. It's even named under my umbrella policy. And the coverage is twice that quoted by BoatUS.(same premium) Of course having the boat on my web site made all the difference. Even more than the survey. The guru's in the home office approved the coverage within minutes.Claims; I had one. I've written about it here. My boat wasn't damaged but a neighbors Yamaha motor was sad. He got a new motor from Allstate. And the whole process from the damage to the new motor coming aboard his boat was three days. What more can I add??Oh, one thing. Fred I went to that web site that rates companies. They don't BACK UP their assertions. Companies are ranked with no ability for the reader to research the placement or particulars of low (or high) placement. They do have a disclaimer though. It says they are working on it. And it also says that none of their stuff can be taken as accurate and correct. You're on your own. But send money.

 

[Tom Spohn]

Boat Insurance Agency

Gary, Check these guys out. Their rates are about 1/2 those of Boat US.http://lostinseattle.com/LIS/marineservices/boatinsuranceagency.html

 

[Fred]

I'm glad to hear that some folks have had good

Luck with State Farm and Allstate. My H26 is on my homeowner's policy through our local Credit Union. They are brokers who write policies many different companies. My Morgan 41 is split between a Canadian company and Loyd's of London.What I like about this arrangement is that my insurance broker represents me if there's a claim. He's not working for the particular insurance company, and he won't get a bonus if he keeps payouts low.I have never had an insurance claim, so I have not tested the theory.I did listen to radio coverage after Katrina on CBC, and State Farm and Allstate were both mentioned by folks who were having trouble with their insurance companies getting even enough money to rent an apartment or food, while their neighbors with different underwriters fared much better.This is sort of off topic, but it may help to choose an underwriter, which was the original question.

 

[ted]

read the fine print

Those of you with BOAT insurance policies instead of YACHT policies are paying about half. But be aware of what you are getting. The BOAT policies that State Farm, Allstate and others sell may pay for damage to your boat but they will not likely pay for any environmental damages. If your boat sinks and spills fuel, you will be stuck for the cost of all remediation. You will sorely regret the pennies you save with a BOAT policy vs a YACHT policy. There are likely many other liability issues that are not covered in a BOAT insurance policy. The large print giveth and the small print taketh away. Do the research and know what you are, or are not, getting for your money.

 

[tweitz]

Stated value

I think a very important issue in insurance is the stated value. In specialized boat insurance policies, if there is a total loss, they pay you the agreed upon value. My understanding is that companies like Allstate and State Farm treat boats like they do cars -- if it is totaled, they give you what they believe to be book value. The difference can be enormous, especially on an older boat. I use BoatUS and have had no claims, but others have said that in the event of a total loss they have no problem getting them to pay the agreed value. Those who comment that their State Farm bill went down on renewal may be benefiting by the decreased value they will be paid for a total loss.

 

[Tom Spohn]

How big is the boat?

When I had a 26' MacGregor it was a snap to add it to my Allstate policy. I had one claim and they paid promptly. They only insure boats up to 26 ft. and the Mac is actually 25'10". When we got a larger boat, a 35'Schock, Allstate bid us farewell. Don't know if other auto/homeowner companies are the same, but I wouldn't be surprised.

 

[Fred]

My policies both cover environmental

damage under the liability portion of the coverage. I didn't have to do anything special. I take a large deductible to reduce the premium. I figure I can stand the replacement of an outboard. It's the loss of my vessel or if I accidently hurt somebody (or somebody's really expensive boat) that I buy insurance for.The cost to clean up after a total loss can be way more than the value of the vessel. In addition to fuel spills, a wrecked boat on someone's remote beach could require cranes on barges pulled by tug boats, all at hourly rates that would curl my hair if I had any left.