Insurance

[higgs]

A friend of mine just bought a Bayhen 21 in Florida - worth around 4K. He has had a terrible time finding someone to insure it. He was told by a number of companies that they would not insure a boat that was 30 years old. Another friend with a boat down here told me he heard that Boat US (Geico) is going to no longer insure boats over 30 years of age. Last year my Boast Us insurance almost doubled on my 36 year old boat to $1000 despite the fact that I have never filed a claim in the 15 years I have been with Boat US. Anyone else having problems with old boats?

 

[dlochner]

Personally I have not had issues with insurance, however, there are many reports of folks having issues with older boats in some areas and with boats of low value.

For a boat worth about $4K, it will be difficult to find hull insurance. It might be covered in some instances by a homeowners policy.

One option is to forgo hull insurance and just have liability insurance.

Why the difficulty? Insurance companies are in business to make money by insuring things. Insuring older low value boats are not a good investment for the company. It is more profitable to insure newer more expensive boats.

 

[Benny17441]

Mortgage Companies, Insurance companies and many other Businesses are shying away from small Dollar value transactions. The draw on resources, both financial and human, that takes to service a number of small accounts is just too costly or limited at this time. You may consider liability coverage and self insure the boat aspects.

 

[Parsons]

When I owned a small trailer sailor, I added it to my State Farm insurance. I think it was written as a separate policy, but it was just like a car, even covered the trailer itself.

 

[Tater]

I have asked our home/auto insurer for a quote on just liability. I worry mostly about injuries to guests. A 500 pound boat couldn't do much damage. Having ROW over 99% of the other boat traffic helps too. The idiots on jet skis don't know about ROW however.

 

[Project_Mayhem]

I've never had an issue insuring old small boats with Progressive. There have been positive experiences posted on this forum regarding their claim process. It costs roughly $300 for liability and hull coverage on my 78 O'Day 25 in Chicago. I primarily get the hull coverage to pay for salvage fees in the event that it sinks

 

[Head Sail]

Why does he need insurance?

 

[dlochner]

Why does he need insurance?

If he should damage or injure another boat or person.

 

[Head Sail]

If he should damage or injure another boat or person.

So if he only needs liability, ask for that only.

 

[Parsons]

Why does he need insurance?

If he wants to tie it up in a marina, rather than trailer, they'll ask to see that liab / fuel recovery insurance.

 

[Head Sail]

If he wants to tie it up in a marina, rather than trailer, they'll ask to see that liab / fuel recovery insurance.

I can see needing liability for a marina berth, but maybe not if he trailers it.

 

[sail sfbay]

........... Anyone else having [insurance] problems with old boats?

No problem insuring a 38-year-old powerboat. I insure it with Chubb through a marine insurance broker..............and yes Geico would not insure a boat that age.

 

[Don S/V ILLusion]

Why does he need insurance?

Regardless of where you keep a boat, insurance protects the rest of us

 

[Head Sail]

Regardless of where you keep a boat, insurance protects the rest of us

There are 3 reasons for insurance, 1) protect your property, 2) protect your assets, 3) the law requires it. Protecting others is not a reason.

 

[Roland5048]

I don't feel hull insurance on a $4K boat would be worth it given the premium costs and deductible. I carry only liability on my '77 30h with Boat US for an annual premium of about $75 - $80 annually. $300K for damages to others' property and over $900K for fuel, oil spills.

 

[Project_Mayhem]

There are 3 reasons for insurance, 1) protect your property, 2) protect your assets, 3) the law requires it. Protecting others is not a reason.

If you damage someone else's property your legally required to pay for damages so that covers 2 and 3. If you care about not losing a ton of money then that would cover 1

 

[Tater]

I can see needing liability for a marina berth, but maybe not if he trailers it.

Scenario: He is sailing with guests. Some idiot in a "wake" boat flies by. A guest is thrown to the deck, arm first. Health insurance pays the doctor bill. Some insurance company bean counter then want all the details. They then go after someone's liability insurance or someone. If you can't find the "idiot", guess who pays. I have been involved in this type of thing twice. It is called subrogation.

 

[Don S/V ILLusion]

There are 3 reasons for insurance, 1) protect your property, 2) protect your assets, 3) the law requires it. Protecting others is not a reason.

it is if you don't care enough to do the first three but if you don't care about others, the world is full of uninsured motorists too and we all know what everyone thinks of them.

 

[Project_Mayhem]

Scenario: He is sailing with guests. Some idiot in a "wake" boat flies by. A guest is thrown to the deck, arm first.

This is actually a realistic scenario. I had a guest get smacked in the head by the companionway when a troller hit the gas exiting the marina

 

[Head Sail]

Scenario: He is sailing with guests. Some idiot in a "wake" boat flies by. A guest is thrown to the deck, arm first. Health insurance pays the doctor bill. Some insurance company bean counter then want all the details. They then go after someone's liability insurance or someone. If you can't find the "idiot", guess who pays. I have been involved in this type of thing twice. It is called subrogation.

This happened to me also, but with the sail boom. Knocked a guest almost overboard but hit the deck instead with minor injuries requiring an emergency hospital visit and $15,000 bill. My boat liability paid it. My insurance protected me.