On the back page of Boat US magazine there is an advertisement for Boat US Insurance where it states that they cover consequential damages, sinking caused by a worn hose etc. and that other insuranc co's don't. I am currently shopping insurance and I checked with AMICA weather they would cover my loss if my boat sank due to say a worn or leaking hose. Here is the response: We are unaware of a hose that would cause the sinking of a boat and if there is we would be very curious about it. Does not give me that warm fuzzy feeling. Since when do boats not have hoses connected below the waterline Any Thoughts
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Amica understands boats
You need to ask for a rep who is familiar with their "Yacht" policy. Their boat policy is for smaller boats that generally do not have below waterline hookups. Basically boats under 20 ft. And yes, they cover a loss due to a hose failure that could sink a boat. I could drive my boat up onto a beach and they would cover it.
You need to ask for a rep who is familiar with their "Yacht" policy. Their boat policy is for smaller boats that generally do not have below waterline hookups. Basically boats under 20 ft. And yes, they cover a loss due to a hose failure that could sink a boat. I could drive my boat up onto a beach and they would cover it.
Consequential damage clause
I think you'll find that consequential damage coverage applies only to catastrophic failure caused by a part that should not have failed. It will not cover failure to due lack of maintenance, neglect, abuse or your other lack of "due diligence," or failure caused by the failure of a part that has worn out or has lasted beyond its normal lifespan. So I doubt if it'll cover sinking caused by a hose failure unless a yard forgot to use hose clamps or the hose chafed through in a location that's so inaccessible as to make it almost impossible to inspect it. Nor would it cover, for instance, a sinking due to your failure to close the head intake thru-hull while away from the boat. So while I agree with Higgs that boats should be insured with a company who understands the difference between a boat and a car--and espeically the difference between a "cabin" boat and a bow rider--I'd read the fine print pertaining to the consequential damage coverage very carefully.
I think you'll find that consequential damage coverage applies only to catastrophic failure caused by a part that should not have failed. It will not cover failure to due lack of maintenance, neglect, abuse or your other lack of "due diligence," or failure caused by the failure of a part that has worn out or has lasted beyond its normal lifespan. So I doubt if it'll cover sinking caused by a hose failure unless a yard forgot to use hose clamps or the hose chafed through in a location that's so inaccessible as to make it almost impossible to inspect it. Nor would it cover, for instance, a sinking due to your failure to close the head intake thru-hull while away from the boat. So while I agree with Higgs that boats should be insured with a company who understands the difference between a boat and a car--and espeically the difference between a "cabin" boat and a bow rider--I'd read the fine print pertaining to the consequential damage coverage very carefully.
Amica clearly states
On their "yacht" policy the following: "We will not pay for loss or damage caused by or resulting from: Wear and tear Gradual deterioration Weathering Insects Vermin Marine life Inherent vice Mold; or Corrosion" So that tells me if I don't properly maintain my boat and something happens to it as a result, they will not cover it. If Boat US does cover this, go for it. But if your boat sinks because you do not maintain it properly, you may be looking at replacing not just the boat but lives also.
On their "yacht" policy the following: "We will not pay for loss or damage caused by or resulting from: Wear and tear Gradual deterioration Weathering Insects Vermin Marine life Inherent vice Mold; or Corrosion" So that tells me if I don't properly maintain my boat and something happens to it as a result, they will not cover it. If Boat US does cover this, go for it. But if your boat sinks because you do not maintain it properly, you may be looking at replacing not just the boat but lives also.
This could be informative
As most of us insure our boats, providing such info here as TimR has might help others make more informed decisions. before running out to buy BoatUS insurance based on their advertisement, I'd like to know specifically what their ACV policy lists for exclusions as I suspect most underwriters include a list very similar to that which Tim mentioned. My Zurich policy list the following exclusions: radioactive forms of contamination war seizure by a civil authority liability limit for NRD only resulting from oil pollution; all other liability is covered wear and tear gradual deterioration mechanical or electrical breakdown unless caused by lightning insect damage and my favorite - inherent vice
As most of us insure our boats, providing such info here as TimR has might help others make more informed decisions. before running out to buy BoatUS insurance based on their advertisement, I'd like to know specifically what their ACV policy lists for exclusions as I suspect most underwriters include a list very similar to that which Tim mentioned. My Zurich policy list the following exclusions: radioactive forms of contamination war seizure by a civil authority liability limit for NRD only resulting from oil pollution; all other liability is covered wear and tear gradual deterioration mechanical or electrical breakdown unless caused by lightning insect damage and my favorite - inherent vice
Auto policy
An auto policy would not cover the hose which is a maint item. But would cover the resulting damage. Boat policy should be the same.
An auto policy would not cover the hose which is a maint item. But would cover the resulting damage. Boat policy should be the same.
Mostly positive responses re: BoatUS
Bob: I think if you look through the archives you will generally find a very positive response regarding BoatUS policies. I would not consider most any company that sells automobile insurance (been there done that). If your boat sinks they will probably pay you some depreciated book value without consideration for condition or upgrades. I got the best rates from BoatUS out in the west. I know that their rates are probably not the lowest in the S.E. US because of substancial losses over the last few years. They also lowered my premiums this year by another $20. Unfortunately my policy is on the boat because of USCG regs, but one of the few exclusions happens to be damanage caused by freezing in California.
Bob: I think if you look through the archives you will generally find a very positive response regarding BoatUS policies. I would not consider most any company that sells automobile insurance (been there done that). If your boat sinks they will probably pay you some depreciated book value without consideration for condition or upgrades. I got the best rates from BoatUS out in the west. I know that their rates are probably not the lowest in the S.E. US because of substancial losses over the last few years. They also lowered my premiums this year by another $20. Unfortunately my policy is on the boat because of USCG regs, but one of the few exclusions happens to be damanage caused by freezing in California.
By the numbers
Just therorizing here but because Boat US insures so many boats, many of which can be wiped out in a single storm, do you think their prices are more likely to increase than companies that insure less boats?
Just therorizing here but because Boat US insures so many boats, many of which can be wiped out in a single storm, do you think their prices are more likely to increase than companies that insure less boats?
Boat US insurance
Boat US knows boats, and from what several friends have told me, they are excluding damnage from any named storm, at least on the gulf coast. Do not have first hand knowledge of this, but I know that a lot of policies do this. Also was told by some that if you live in the NE, your insurance won't cover you if you head south before Nov.1. Again this is hear say, but I have no reason to doubt it. I do have first hand info. that insurance rates here have gone through the roof, and most policies that are affordable are full of exclusions.
Boat US knows boats, and from what several friends have told me, they are excluding damnage from any named storm, at least on the gulf coast. Do not have first hand knowledge of this, but I know that a lot of policies do this. Also was told by some that if you live in the NE, your insurance won't cover you if you head south before Nov.1. Again this is hear say, but I have no reason to doubt it. I do have first hand info. that insurance rates here have gone through the roof, and most policies that are affordable are full of exclusions.
Do you really know what your policy will cover?
If we all inspected the hose clamps and the hoses on our boats before each time we left the slip and put the boat to bed for the weekend I guess we would not need insurance at all. But no matter how diligent we are, things do happen. Do you use a mirror to check the back of hose clamps to be sure they are not rusting through? So lets say that you ask your spouse "did you close all the seacocks"? "Of course I did, do you think I am stupid". Unfortunately one of the seacocks WAS left open. Now you go home the wind picks up a little at the marina, the boat is bouncing about in the slip and that hose clamp breaks, the hose is weakend under the old clamp and suddenly water starts coming into the boat. Since it is dark, no one at the marina knows that your boat is slowly taking on water. The bilge pump is running (but it is a few years old) and the batteries well they are a couple of years old also so they just can't keep up. As the water fills the boat and runs into your fuel tank, the fuel gets displaced by the water and suddenly you have a real disaster on your hands. Should this fall under the wear and tear exclusion? You knew that the bilge pump and batteries were old, You looked at the hose clamps at the begining of the year but maybe then that crack or rust in the clamp was not visible then. And further more you asked if the seacocks were closed anyway. All hypothetical yes, but is DOES happen. Do you know if your insurance company will cover the loss or not?
If we all inspected the hose clamps and the hoses on our boats before each time we left the slip and put the boat to bed for the weekend I guess we would not need insurance at all. But no matter how diligent we are, things do happen. Do you use a mirror to check the back of hose clamps to be sure they are not rusting through? So lets say that you ask your spouse "did you close all the seacocks"? "Of course I did, do you think I am stupid". Unfortunately one of the seacocks WAS left open. Now you go home the wind picks up a little at the marina, the boat is bouncing about in the slip and that hose clamp breaks, the hose is weakend under the old clamp and suddenly water starts coming into the boat. Since it is dark, no one at the marina knows that your boat is slowly taking on water. The bilge pump is running (but it is a few years old) and the batteries well they are a couple of years old also so they just can't keep up. As the water fills the boat and runs into your fuel tank, the fuel gets displaced by the water and suddenly you have a real disaster on your hands. Should this fall under the wear and tear exclusion? You knew that the bilge pump and batteries were old, You looked at the hose clamps at the begining of the year but maybe then that crack or rust in the clamp was not visible then. And further more you asked if the seacocks were closed anyway. All hypothetical yes, but is DOES happen. Do you know if your insurance company will cover the loss or not?
Check with...
Sea Tow if they are in your area. They cover enviromental damage (oil,fuel) spills which could be costly. And when called... would rather get you out of a rough situation... rather than a salvage job. Whom ever you choose... you will probably need a recent suryey. Expect to fix some things.
Sea Tow if they are in your area. They cover enviromental damage (oil,fuel) spills which could be costly. And when called... would rather get you out of a rough situation... rather than a salvage job. Whom ever you choose... you will probably need a recent suryey. Expect to fix some things.
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