In Search of a New Insurance Carrier

[Sea Hunt Video]

I sincerely appreciate the efforts of Ben M. and Sterling to provide "insider" information on boat insurance pricing.

Ben M. I do understand your analysis of why boat insurance companies charge what they charge. I "assumed" (yes, I know the joke ) that there was more flexibility or "spreads" in their evaluations. Apparently not.

Sterling, I have never used an "independent agent". I must confess to not trusting insurance agents any more than I trust stock brokers. In order for them to put food on the table for their family they have to make money. I "assume" (yes, again I know the joke) that to do this they have to sign you up. Whether the money is coming out of the insurance co. initially (and eventually out of the insured) or it is coming directly out of the insured to the "independent agent" the agent is getting paid. His (her) incentive is to recommend the company and/or policy coverage that will provide the most coin in his pocket

If I am wrong I will readily admit it. I don't think I am. I have sadly dealt with more than my share of insurance companies but admittedly never an "independent agent". Their goal is to get you to sign up for the policy that will make them the most money. They may delude themselves with the rationale that this policy I got you into has only a 10% deductible so it's better than this other policy that has a 30% deductible. Of course, I make a larger commission on the 10% deductible because the premium to the ins. co. skyrockets.

Hopefully you'll never need this but most importantly a good agent will be there to assist you in your time of need . . . at time of a claim.

Sadly, Sterling, this has not been my experience. My house was completely destroyed during Hurricane Andrew (24 August 1992). My insurance co. arrived at my home 6 weeks AFTER the storm. When I told the agent all of my papers had been destroyed (blown away) in the hurricane, I actually saw a smile on his face. He told me that I had an "actual cash value" policy and they would have to come back in 4-6 weeks to count all the wood framing, drywall, shingles (literally he said "nails") to determine what the cash value was LESS depreciation. I know I had a gold standard policy - guaranteed replacement coverage was its name back in 1992. It took me almost a year to finally pry it from the insurance company. When I did, they surprisingly started throwing money at me. Gee, I wonder why.

Several years ago the hot water heater broke in my home. It flooded the entire interior of my home. The insurance agent came to the house, inspected and offered me a ridiculous payment compensation for the repairs (all the carpeting, remove some drywall, repaint most of the interior), After about three (3) weeks of back and forth "discussions" and threats of a lawsuit the agent finally agreed to pay a reasonable amount in compensation.

As you may well appreciate, I have no love lost for insurance companies, agents, brokers, etc. From the sincerity of your post I am confidant you are the exception to the rule. Sadly, you do not live in Miami.

If there are any agents or brokers who read this post and are offended, I sincerely apologize. I intend no offense. I am simply reciting the events and facts in my personal experience with insurance cos. agents, etc.

[John Stone]

Roberto, Amen brother.

I called Markel this morning to see about reducing my insurance rate since I will have the boat well away from the Atlantic Ocean for the next year. We will be 30+ miles from the ocean, well up the Neuse River. My current coverage had us covered offshore from Cape May, NJ to Jacksonville FL.

Their response is they would gladly reduce our operating area to inland water but the rate was the same. Say what? That’s right. Even though we would be on a river more than 30 miles from the ocean there was no change in our rates.

So I started talking to them about increasing the deductible. Here is the catch. Whatever the deductible is on the boat, it doubles for a wind storm. For example, if I changed the deductible from $2000 to $10,000 to lower the premiums, the deductible for damage caused by a wind event would be double that at $20,000. LOL. They were serious. So even though we have never had a claim in 45 years...kept our boat from having any damage during Florence last year...our rate is the same as the guy that lost his boat because he did not prepare it for the expected conditions. That guy got a check for the insured value of his boat and we got a 30 percent hike in premiums.

So, I’m with you Roberto.

[Sea Hunt Video]

An update.

I called Progressive and asked to speak with an agent about boat insurance. Perhaps it is just my bad luck but the person I spoke with had absolutely no knowledge about boats. He repeatedly asked me "how many engines?" and "are THEY gas engines?" despite my detailed description of my saiboat.

He also did not understand that "25D" is the model of a Cape Dory sailboat.

The conversation was exhausting.

Then came the quote. Almost DOUBLE my current premium

I then called US Power Squadron and was connected to an insurance agent. He was VERY KNOWLEDGEABLE. He said that USPS uses several different insurance companies depending on location of the boat, type of boat, etc. When I gave him the specs on S/V Bali Ha'i and told him I wanted to insure for both liability and comprehensive he said he could not offer anything. He was very polite explaining that because my sailboat is 37 years old and is home ported in South Florida that he could not offer me anything. He did say that if I wanted ONLY liability coverage he might be able to find an insurance carrier to write a policy.

Sooooooooo, "back to square one" as they say.

Perhaps selling S/V Bali Ha'i and buying a CD 10 to row around Biscayne Bay is not such a bad idea.

[John Ring]

My BoatUS/Geico rates went up in cost a lot over the past few years, and required riders at $500 a pop for anything off shore. Liability coverage was $300k. Back in May I called for a rider for an upcoming Bermuda trip and had to answer a dozen questions about my boat, each individual crew member's experience, their individual boat ownership history, my trip itinerary, etc. I later got an email asking all the same and completed that too. A week went by with no response, so I called again, and had to provide the detail information over the phone for a third time. Two weeks later, no response or offer of a rider. I called Geico again & dropped the policy entirely.

For $30/year more that the basic BoatUS/Geico policy, I got a Pantaenius America policy with $500k coverage that covers my boat north of Florida to the top of Newfoundland, and as far east as 50* west longitude without the need for riders. That's a HUGE cruising range, and I can now travel to/from Bermuda without additional insurance riders.

While I found BoatUS/Geico to be far less than helpful, I found this article on boat insurance to be very helpful: http://www.allthingsboat.com/compare-boat-insurance

John Ring
CD36 Tiara

[John Stone]

My BoatUS/Geico rates went up in cost a lot over the past few years, and required riders at $500 a pop for anything off shore. Liability coverage was $300k. Back in May I called for a rider for an upcoming Bermuda trip and had to answer a dozen questions about my boat, each individual crew member's experience, their individual boat ownership history, my trip itinerary, etc. I later got an email asking all the same and completed that too. A week went by with no response, so I called again, and had to provide the detail information over the phone for a third time. Two weeks later, no response or offer of a rider. I called Geico again & dropped the policy entirely.

For $30/year more that the basic BoatUS/Geico policy, I got a Pantaenius America policy with $500k coverage that covers my boat north of Florida to the top of Newfoundland, and as far east as 50* west longitude without the need for riders. That's a HUGE cruising range, and I can now travel to/from Bermuda without additional insurance riders.

While I found BoatUS/Geico to be far less than helpful, I found this article on boat insurance to be very helpful: http://www.allthingsboat.com/compare-boat-insurance

John Ring

Thanks John Ring. Good info. Appreciate you sharing it.
CD36 Tiara

[Sea Hunt Video]

The more research and asking questions that I have done, the more I am remembering my search for an insurance co. several years ago. It was the same story as now - "your sailboat is in Florida"; and "your sailboat is 37 years old"

John R., I will call Pantaenius America but my guess is they will have the same response.