Insurance during the crisis

[Mike Davis]

Greetings!
I received a text today that my boat insurance policy is about to expire and the company (Boat/US Geico) extended the non payment of the policy until April 30th. in the meantime, I'm social distancing myself to a point that I rarely go outside. I live in the epicenter of the virus, which is NYC. The marina is closed and I can't even get to my bat, no less use it. I believe many of us are in the same situation and in my opinion the insurance companies have to be very flexible in demanding payment for insuring our boats in this time of crisis. Any comments are welcomed. Thank you,
Mike Davis

[Vincent]

After looking closer at the terms of my insurance and how little they will pay for anything on a boat over 20 years old, I plan to cancel my insurance when my policy year is up.

[Mike Davis]

Vincent,
I'lll probably do the same. I just don't want the insurance company to increase rates because I canceled in this pandemic situation.
Mike

[tjr818]

My BoatUS policy is for an "Agreed Value", it does mater how old the boat is. Our harbor requires $500,000 liability insurance anyway, so why not keep the whole policy?

[Carl Thunberg]

When you get your April/May issue of Boat U.S. magazine, make sure you read the article on "Crazy Claims". Some of them are hilarious (because no one got hurt)! My personal favorite was the wife of a boater who had a "unique" way of complying with her husband's suggestion that she winterize the boat.

[Steve Laume]

I never really looked at my insurance as a way to cover the loss of my boat. I consider it a necessary evil, that would keep me solvent if I created an oil spill or damaged someone else's property.

Please keep your boat insured for the sake of us all, Steve,

[Neil Gordon]

As mentioned, it's not just protecting against the loss of the boat. Be sure you're protected against damage to others and their property.

As much as insurance companies don't like paying claims, they're on your side when the cause of an accident is in dispute.

[John Stone]

I have carried comprehensive insurances and at times just liability for my boat. At a minimum, always always carry liability insurance...if your boat sinks in the slip and has to be salvaged or it smashes into someone else’s boat causing damage you need to have that cost paid for by the insurance company. To do less is irresponsible not to mention you can be sued in a big way. You absolutely owe it to someone if you damage their boat to cover that damage. It was not their fault. It was your fault.

Liability is fairly inexpensive. The one problem you can be confronted with if you drop comprehensive coverage is when you want to regain that coverage. Most insurance companies will require a survey if there is a lapse in comprehensive coverage before they will cover you. Surveys can be expensive.

[Dick Kobayashi]

Keep the insurance. Why? You can probably afford the loss of the hull, but can you afford salvage, damage to another boat or property, or even worse damage to a person. How will you even afford the defense costs when you are sued? Word is: lawyers are expensive.

[tjr818]

If you boat sinks and leaks even a drop of oil into the water you could be liable for more damages than you can imagine. Our BoatUS policy carries a $939,800 limit for "Fuel and Other Spill Liability, I am sure that they picked that number based on some previous claims. We owe it to other boaters and water lovers. Carry insurance.

[Paul D.]

I'd keep the insurance for the above reasons. You can lower the boat value in the properties section.

[John Stone]

If you only carry liability insurance I’d be surprised if it cost more than $200 a year. Maybe less. Just make sure you specify salvage, POL spills, damage to other boats and injury claims.

That’s all I normally carry when sailing offshore and in the Caribbean.

[Mike Davis]

The issue is if the boat is dry docked and not to be used at all this year, what insurance do I really need?

[John Stone]

Well comprehensive provides coverage and compensates you if your boat is damaged—it pays you back for repairs to your boat if it’s damaged. Liability provides coverage if you are liable for damage your boat causes to others. The latter is less expensive. It compensates others if you are at fault.

I have comprehensive (typically more expensive) on my boat while she is on the hard but they gave me a much reduced rate since she is not being used. In other words I negotiated the premiums to be lowered since it’s less likely something will happen to her while she is on the hard.

You have to decide what risk you are willing to accept. Call your insurance agent and have a discussion.

[tjr818]

The issue is if the boat is dry docked and not to be used at all this year, what insurance do I really need?

Fire. Theft. Flood? Freeze? If the mast is up, liability.