Just rejected for sailboat insurance!

[danstanford]

We just bought a 1989 Legend 37 for a great price because she has been unused for a couple of seasons and has some water in the deck. The surveyor pointed out every deficiency including such things as no fire arrest system in the engine compartment and the fact that the propane cyclinder in the aft locker was not secured with a strap. there were 24 of these kinds of notes which made it great for negotiation of price. Now we have her sitting on the hard 2 hours away and I just want to get her insured so I can start on the list of stuff next spring. the only insurance broker I tried so far had her declined by the insurance company because of her condition as listed in the survey. Any ideas besides repairing everything (cannot do it till spring) or just trying various brokers? Dan

 

[Ross]

You can insure anything but sometimes the cost will prevent a practical solution.. You listed Bath as an address is that Bath, ME? Do you need insurance before you launch? Carefully control your risk of loss while you are working and get a new survey when you feel she is ready.

 

[Ed Schenck]

So the insurer did not indicate which item caused the rejection? Most of us do not have fire suppression so that can't be it. I have my insurance with State Farm and they have never asked for the survey and have never looked at my 1979 boat. Cost less than $500. and with no restrictions.

 

[RichH]

You are entitled to know the reasons for rejection, your alternatives to gain 'limited port risk' (launch but not sail, etc.) so as to be insured for 'liability', etc. until the deficiencies are corrected, etc. Are you dealing with a REPUTABLE marine insurance carrier like Boat/US etc. ????????

 

[Steve Dion]

Dan:

I suggest that you just shop around with some different companies. Your surveyor is just doing what he is supposed to do. As you said, it gave you a lot of margin for negotiating.

You are not in a high risk area like Fl. so I would think there should be several companies that will take you on. They may have some exclusions until the items are corrected.

 

[dparilla]

Also, a lot of insurers look for a letter of compliance, which can include what you intend to do to comply with the recommendations. We put it ours that many of the repairs would be over the next season, and as long as there was a good, coherent plan, they had no problems. The only show stopper we had was an automatic bilge pump switch that had to be installed before launch (and I was fine with doing that.) Otherwise, things like solid core electric wire, split rings vice cotter pins etc. helped with negotiating and were pushed to the commissioning checklist. Oh, and there was no follow up other than from the Admiral who kept me honest.

 

[KD3PC]

usually there are some "must" fix items in the survey...most insurance companies will give you 20-30 days to correct those things. the next tier a few more days and so on. I would contact BoatUs and speak with them...if all 24 are must fix...you may not be able to wait till spring if you want insurance...

YMMV

 

[sidneyK]

I don’t know what your boats value is, but my boat is a 1982 Lancer 28 sailboat. The replacement value of my boat is about 8000. I think the best insurance for this value is Liability only and Towing with BoatU.S. I got Liability with PREGRESSIVE Insurance on line for 100.00 per year.

 

[Peggie Hall HeadMistress]

What you need is "port risk " or "builders risk" insurance

Not a yacht policy. Port risk and builders risk are coverage just for boats that aren't sea worthy, so they must remain in the slip or on the hard till all the problems that make 'em an unacceptable risk are fixed. The boat will be covered against storm damage, fire etc...which is all you need for the winter.

Call Al Golden at International Marine Insurance Services (IMIS)...he issued a "port risk only" policy for me when I bought a project boat. There is a deadline by which some things MUST be fixed--fire hazards and/or things that could sink the boat if it's in the water etc, or the coverage will lapse...but it's all reasonable and do-able.

http://www.imis.pro/Contact.htm

I've known Al for 20 years...he's definitely one of the best of the good guys.

 

[Jumpstart]

Due to a recent string of bad luck I have become a defacto expert on boat insurance. 3 claims (3 different boats) in 3 years after having 0 claims for the previous 20 years. Marine only companies like Ace will require a survey and usually will require most things to be fixed within 30 days of purchase. I had 2 substantial claims with Ace and they paid off on both. I went to insure the next boat and Ace required me to have the survey items fixed in 30 days which wasn't going to happen in the winter time with the boat inside and a historically slow fiberglass guy.. Looked at Boat US which was ok; they also quoted me through Progressive. Eventually went to my local agent again and got Progressive. Progressive did not even require a survey.

Be sure insure for market value with replacement cost on damage. Do not use the price you paid as stated value since it was a good deal. Most insurance companies will write your boat off if claim is 80% of the stated value. Little known fact is that if they write your boat off they send you a check for the full stated amount and do not deduct the deductible.

I had a pleasant experience with Progressive. Damage was from grounding in entrance to a marina. I hit a big rock in area that was supposedly dredged.The Progressive adjuster met me at the boat as it was hauled. My fiberglass guy was there and they worked out the claim right there. Fiberglass guy gave him an estimate and the adjuster went back to his car and printed out the check right there. He also came back and inspected the boat before it was put back in. Fantastic service. Adjuster also attached statement to the claim noting that it was not a chargeable claim to my record.

 

[higgs]

Don't overlook Boat US insurance.

 

[garyc]

Ceck with your home owners policy. many also do boat ins.

 

[Bad Obsession]

I agree with checking with Boat US. I really believe that they are one of the better insurers to go with because they specialize in boat insurance. They seem to know the ins and outs of this.

I don't blame you for wanting insurance. It is painful and expensive to loose your baby...not having it insured is just crazy.

Good luck

 

[danstanford]

Thanks Everybody for your feedback. For the record, the Bath I was referring to is on the north shore of Lake Ontario just west of Kingston Ontario. There is nothing in the report which scared me, and I know I am going out on the lake with my loved ones! We need to fix up some small issues with respect to extinguishers and so on, but I am committed to sailing a safe vessel. Having an old friend in the insurance business, I understand that if I had to choose as an insurer, I would always take the newer boat in better conditions.
I will take your advice and try some other carriers here, presumably Boat US is not available though.

Thanks, Dan

 

[seadaddler]

Progressive

I called Progressive on the phone no agent everything was done over the phone and very easy and every year they give me a dicount for no claims.
Nick

 

[SeaRanch]

State Farm insured by boats for the last 10 years when they were < 30' and < $100,000.
My C387 was rejected by State Farm and Sea Tow, due to length and value.
I did the Boat US application on line, accepted and the rate was reasonable.

Bill

 

[kenn]

Thanks Everybody for your feedback. For the record, the Bath I was referring to is on the north shore of Lake Ontario just west of Kingston Ontario. There is nothing in the report which scared me, and I know I am going out on the lake with my loved ones! We need to fix up some small issues with respect to extinguishers and so on, but I am committed to sailing a safe vessel. Having an old friend in the insurance business, I understand that if I had to choose as an insurer, I would always take the newer boat in better conditions.
I will take your advice and try some other carriers here, presumably Boat US is not available though.

We're in Toronto. When we looked for insurance on our little boat, the quotes were all over the place. We got the best price from AVIVA Elite, via a local broker. One thing that kept the cost down was setting a reasonable replacement value.

When you're all fixed up, and get re-surveyed, you can then renegotiate your insurance for a higher replacement value.

 

[captainpat]

Try Charter Lakes marine insurance.

 

[druid]

We're in Toronto. When we looked for insurance on our little boat, the quotes were all over the place. We got the best price from AVIVA Elite, via a local broker. One thing that kept the cost down was setting a reasonable replacement value.

When you're all fixed up, and get re-surveyed, you can then renegotiate your insurance for a higher replacement value.

I don't know if you have Dolphin Ins over there but that's who I use - they're very knowledgable and if they reject or whatever they will tell you why. Also, I don't know what the situation is out East, but here on the Wet Coast you HAVE to have insurance in order to get moorage. Some even require "collision" (ie not just liability). Also, I have to have a survey EVERY 5 YEARS for a boat my age (1973).

Can you get the surveyor to classify the "deficiencies" as "required" or "recommended"? I think the Ins Co would only need you to fix the "required" problems.

druid
1973 Crown 28