The State of Insurance

[Phil Herring]

Sadly, it's been a busy year for boat insurers... but what's the state of your insurance?

Did you have to make a claim this year? How did that go? And for everyone else, what's happening with your rates? Has the severe weather of the past few years taken a toll on your wallet?

Share your premium tales here.

 

[DougM]

I have had insurance with reasonable rates for all of the years I have owned boats.The single claim I had was because of a dismasting during winter storage. That claim was handled promptly and, in my opinion, fairly. The boat is insured at an agreed value.

The one inconvenience that really gets me is that since the boat is older than 10 years, the insurer requires a survey every five years. I can understand that. However, the agent’s timing for requiring this is incredibly lopsided. My boat was purchased in September, so the policy comes due in September, and the request for the fifth year survey inevitably shows up about a week after the boat goes into winter storage.

That makes it impossible for a surveyor to do an in the water survey, and because the boat is shrink wrapped, he cannot get inside. Consequently, the survey has to be put off until spring, and I have to explain to the agent why it cannot be completed by their required date. Add to that, there is not a surveyor located nearby who has expertise in sailboats. A capable surveyor wants time and mileage to even come to inspect the boat.

 

[FastOlson]

Doug, I hope that's not the same insurer we use, BoatUS. Your insurer sounds unknowledgeable about boats and seasons. (?)

 

[plenny7]

For our '92 Hunter 33.5, with a 6 month season in Minnesota, we were paying between $535 and $585 annually over the last 4 years with Geico but recently switched to Progressive for $350 with better coverage. No claims.

 

[DougM]

Doug, I hope that's not the same insurer we use, BoatUS. Your insurer sounds unknowledgeable about boats and seasons. (?)

Its not the insurance company as much as it is the agent being unfamiliar with the concept of seasonal awareness, nor any knowledge of differences between sailboats and powerboats. The agent is more attuned to dealing with things that don’t float. Up until a year ago, I had the same agent for decades. He had decided it was time to retire, so I got assigned to the “rookie”.

 

[SDcondogirl]

I have had Progressive for a while now, but once I moved to CA, I am getting royally screwed: they will not insure my boat for her true value (she’s a perfect 22yrs old), has issues with claims NOT involving another boat (I don’t think they will even pay out for vandalism, etc), paying inequitable rates (clean record) AND paying “registration” (use) tax on FMV! What gives?

 

[Screen Saver]

Arrrrr… Ya probably shouldn't get me started with Boat insurance. Got my Hunter 49 new in 2008, been comprehensively insured since new, till early last year when insurance premiums went crazy, near enough to 100% increase, from around 3.5k then $4k aud to $6k then $7k at which point I dropped all insurance. Shopped around all over the place all though Progressive wasn't one that came up, but I probably tried 15 or so places, all of them had gone silly. In the end I spoked to Llyods UK whom back 90% of any decent insurance and after some 6 months emails phone calls I was actually presented with Llyods internal P&L clearly showing that marine insurance was running at a substantial loss, and had been for at least 3 or so years. Much information was revealed and discussed, bottom line though marine insurance is NOT just vessels. For those whom have a business, you would be aware of what marine insurance includes. This is where one of the major problems is, they have no idea of the profitability (or not) of actual vessel insurance. Plus its less 0.5% of Lloyds business, and they have 70% of the market . Sorry to say guys but the US is 80% responsible for hikes and 60% of that is NOT us Yachties or even those other boats that motor. If someone actually did there home work wrote a half reasonable policy the price would be less than 1% ( as it was ) instead typically now 1.5%. This is for blue water sailing/cruising full time, not you harbor guys, no offens implied.
Grrrrrrr
I will get back in my box now.

 

[jssailem]

I have been wondering is there a claim possible for the loss of my planned sailing season? All the prep and planning that was done to spend 60 days of exploring was dashed by the virus that descended upon me and my aspirations. I was locked down. Locked in. Masked. And washed til it hurt, a little. Then sanitized. Only thing missing was one of those paper wraps around my forehead like the toilet in a cheap motel announcing I’m clean.

I can never recover this lost 60 days. Is there insurance for that?

 

[FastOlson]

Hmmm...
If not intended as a tongue-in-cheek question....

I have friends with small businesses that carry business interruption insurance. What with the current wildfire damage in big parts of our state I would guess that some businesses and farms are making claims.

OTOH, I have not heard of coverage for usage of a pleasure boat (boats used for commercial purposes could be covered by business insurance, presumably.)
All that said, the way insurance works, i.e. like a gamble, darned near Anything can be insured, but the cost might be beyond prohibitive.

Interesting question for a Monday.

Wear your mask and avoid crowds -- so you will not invoking your Health Insurance... or your Life Insurance.
(big sigh)