Do I need Insurance???

[hsi88]

Boat US liability-only insurance for my Cat 27 is $189 a year. $300K uninsured, $850K spill coverage and limited medical. I can't imagine your policy would be much more than $250 a year. And this covers everything needed by my Marina. I pull the couple of pieces of electronics I have after every trip and realize the boat may be broken into or go to the bottom without compensation. Its an old boat that didn't cost much. I assume all risk.

 

[sailcruiser]

If it were me I would carry a marine liability policy with limits that marinas/clubs in your area re. quire. In my area they want 300k. I'd make sure it has a good salvage and fuel spill clause. Then I'd let the umbrella be the above and beyond insurance. I've never heard of liability requiring a survey but I'm sure somewhere it has happened.

I think a lot of club managers would reject an umbrella policy simply on ignorance. They look for a certain set of data and I think it would be worth the few hundred to avoid that headache.
SC

 

[Skipc1954]

An umbrella policy assumes you have general liability coverage up to 300,000 if you do not have that then you will have to pay that amount before they would kick in any amount over that!!! Get liability coverage and then add the boat to your umbrella policy.

 

[sailndays]

To buy or not to buy. Well, it depends. Hull or Liability? Yes many HO policies will pick up Liability, but... Subject to length restrictions (your canoe might be covered, but not your 34' Catalina). Call your Broker or insurer. I doubt most boats today would be covered. So the next time you cross that Beneteau, you might wish that you had insurance (how much do you have in the bank?). Hull? I'd buy, I just don't happen to have $$ laying around to buy another boat so I'm buying. Most Boat insurers give discounts for competing US Power Squadron classes.

 

[Old Timer]

I believe boats over'25 require a survey in order to get insurance, at least in Ohio. I bought a Catalina '25, and didn't get a survey, I wish I had done so, because I keep finding surprises. Regarding insurance, mine was based on replacement value of boat and trailer, being an older boat, my annual premium was only $100/year. I also have a million dollar umbrella liability policy, but that kicks in when the regular insurance liability is surpassed.Good luck!

 

[BigEasy]

I am not an attorney and not an insurance rep so take my advice accordingly.
1. Most general umbrella policies require one to carry some level of liability insurance
regardless of whether it is a homeowners, auto, boat, etc BEFORE the umbrella
kicks in. The umbrella policy underwriter will want to know these things as it
determines their level of risk and of course the cost of the umbrella policy for you.
2. Most marinas will require you to have a certain amount of liability insurance on
a dedicated boat policy. Furthermore, it is very common for marinas to require
that you list them as an "additional insured" on the boat policy.
3. As others have mentioned, if your boat has a major oil leak or fuel leak (whether it
sinks or not), it will cost a fortune to comply with the USCG spill regulations. I cant
imagine the cost of a service company to place oil booms to contain a spill, suck it up
and dispose of it properly. Not to mention the liability for oil damage & stains to your
neighbors in surrounding slips.
4. If the boat sinks, you are going to have to pay divers to place inflatable bags, patch
a hole temporarily, and pump out the boat to refloat it or in the case of some
weather event, a barge and crane may be necessary to extract it. If the boat has to
be salvaged and destroyed, lord only knows what the cost would be.
5. If you have to have someone work on your boat and that person is injured, there
are differing laws as to how the liability is determined as compared to someone
working on your house. Jones Act and Longhsoremen's & harbor workers
compensation can sometimes become a factor that a smart attorney can pursue.
6. Boats in the 30' class become classified as "yachts" and for insurance purporses
they are treated as a different animal.

I wouldn't even contemplate not getting a "yacht" policy from a reputable insurance co., because of all of the potential liabilities. The cost of the policy on a fresh water lake that has no hurricane exposure should be minimal. Whether you insurance it for an agreed upon replacement value is optional. Also, I think the survey cost is a necessity on a 30 foot boat. I have been around boats for over 30 years; however, I don't know as much as good surveyor about potential problems areas; in my opinion the survey is money well spent. It would be really an embarrassing and costly dilemma to find out after you purchase the boat that an insurance company requires a survey and you find out there are major problems with the boat after the purchase, on
a "post purchase" insurance survey. It is a traumatic experience to lose a boat and have it totaled. My previous boat was totaled in Hurricane Katrina, 10 years ago. The insurance company handled EVERYTHING including extracting the boat, hauling it away, and salvaging it. Of course I had it also insured for an agreed upon value. The only thing that was required of me was to sign the title of ownership to the insurance Co. and have it notarized. I got a check in the mail about one month later. I couldn't imagine all of the headaches and expense of dealing with that myself. Believe me, you have my sympathy--boat ownership is an expensive hobby!

 

[dlochner]

A few years back my boat blew off its jack stands during a winter storm. Had it not been for insurance, I would have been on the hook not only for the damage to the boat, but also for the crane and labor that it took to pick the boat up.

Your umbrella liability is probably good for covering your negligence, but would it cover the cost of salvage if the boat is run aground? The crane for picking up the boat after it fell over? The oil spill from a broken fuel line or over filling the tank? These are the events that can be costly and why we all should have insurance specific to boating.

And, most marina contracts that I have had or heard about specify that the marina is never at fault, even when they are.

 

[Chief RA]

I bought a 1998 Catalina 250 wing keel,tall mast a couple years ago and got no problem surprises. My wife and I inspected and bought it but it had never been in salt water plus we refused the old outboard. Yes, it is fully insured even though we own it completely. Chief

 

[D.L.Bland]

in 1981 my 32' was sunk in a "natural event", whilst IN aa harbour, PAYING rent , like somone above I thought the marina would have covered, or I had the idea also that our homeowners covered the boat, , no!
BUT MUCH more the SALVAGE costs to raised the boat were over 6 grand at the day & time, and accrued "fees" way too quickly , This is what I think these good fellows are referring to as SALVAGE INSURANCE. I gave up the boat AND still had to pay the salvage costs! over 10k by that time,(accruing)
GET THE BLOODY INSURANCE FOR LIABILITY & SALVAGE MATE!

 

[BigEasy]

DL, your unfortunate experience with the sinking & salvage of your boat speaks volumes. Can you imagine how much it would have cost if there was a substantial fuel leak after the boat sank? I gotta agree with you 100% you; the minimal cost of a liability & salvage insurance is definitely worth the expense.