Boat Insurance Woes

[rtbates]

Is it true that insurance companies have a say in where you can sail (AND be insured), how many crew you have for voyages, (AND be insured), and what areas you can sail during hurricane season,(AND be insured), and that most have clauses that exclude damage from named storms? As you can tell the only insurance I have is liability, which came as part of my home owners policy. Any damage to Seraph is on my nickel. Oddly enough I like that way.

[Mike]

Yes, Yes, Yes and maybe. You can get riders at additional cost to cover you for named storms if you stay in the hurricane exclusion zone.

Mike

[Neil Gordon]

Is it true that insurance companies have a say in where you can sail (AND be insured), how many crew you have for voyages, (AND be insured), and what areas you can sail during hurricane season,(AND be insured), ...

They can also limit WHEN you can sail... fairly standard in the northeast for the season to be limited to beginning of April through the end of October. As has been mentioned, riders are available that will expand the scope of coverage.

[rtbates]

thanks Mike & Neil:

I assume they don't take too kindly to singlehanders either.

[Neil Gordon]

I assume they don't take too kindly to singlehanders either.

I've never heard of it mentioned as a policy restriction or premium issue. I don't think it's an added risk, either. When you consider what causes boats to suffer damage that results in insurance claims, what would be highest on the list? Storm damage would seem to be number one and most of those boats are damaged on moorings (or they were torn from moorings) or in slips. That may be less true for powerboats, as they tend to do major damage from the sorts of accidents that would barely bump a slower moving sailboat.

[mgphl52]

And, sometimes having "new" sailors onboard is FAR more difficult than being single-handed!

[Mike]

rtbates wrote:
I assume they don't take too kindly to singlehanders either.

They don't. Bottom line single handers can't get insurance: ask Russell.

In fact if you have less than 3 people aboard you have to qualify for most offshore policies.

Mike

[rtbates]

I assume they don't take too kindly to singlehanders either.

I've never heard of it mentioned as a policy restriction or premium issue. I don't think it's an added risk, either. When you consider what causes boats to suffer damage that results in insurance claims, what would be highest on the list? Storm damage would seem to be number one and most of those boats are damaged on moorings (or they were torn from moorings) or in slips. That may be less true for powerboats, as they tend to do major damage from the sorts of accidents that would barely bump a slower moving sailboat.

Well, yes, while I agree. No singlehander can keep a watch 24/7 for long and as such is in direct violation of the rule to always keep a lookout. Agreed? Or does heaving to relieve one of the lookout requirement?

[rtbates]

rtbates wrote:
I assume they don't take too kindly to singlehanders either.

They don't. Bottom line single handers can't get insurance: ask Russell.

In fact if you have less than 3 people aboard you have to qualify for most offshore policies.

Mike

Thanks Mike:

Kinda what I suspected.

[Neil Gordon]

No singlehander can keep a watch 24/7 for long and as such is in direct violation of the rule to always keep a lookout. Agreed? Or does heaving to relieve one of the lookout requirement?

Hove to or not, you're underway and required by the rules to have a lookout. As generally interpreted, the lookout should have no other duties (so as not to be distracted), so sailing alone you're really never in compliance.

Sorry for the disconnect on solo sailing and insurance. I've never seen the condition on an inshore/coastal policy. Offshore may well be a different matter.

[Bill Goldsmith]

Be sure to check that whatever company you use is correctly rating your territory. If you confine your territory to a limited area where you do 99% of your sailing you might be able to save on the premium. For instance, I keep Loonsong on the Lower Hudson River in NY, and mostly daysail and overnight on the river. Boat US has a much lower rate for the territory "Hudson River north of the George Washington Bridge" (about $450) than for "East Coast US" (about $750). For my annual cruises to LI Sound and/or NJ, I can call them and extend the cruising area to "East Coast US" for 14 days at a pop for $25. This is a potential money saver and many companies don't advertise this option because they would rather rate you for the more expensive territory.

[Russell]

Reguarding USAA, I have used them for just about everything over the years(home and car insurances, home mortgage, bank accounts, credit cards, even long distance calling plans and cell phones). No doubt anyone who has used them knows the service cant be beat, and often the prices cant either. Indeed on larger boats though they basicly outsource it, but when it comes down to filing a claim, USAA is going to fight on your side(and win), not the underwriters, sometimes the extra dollars spent in premiums are worth it in cases like this. If your a USAA member and they are able to insure your boat (even if through another underwriter) by all means, I say spend the extra and insure with them. Plus, if your a USAA member, you know that at the end of the year you get a check in the mail anyways, the more services of theirs you use the bigger that check, so it may even out compared to cheaper quotes anyways.

That said, USAA is mainly setup to handle small boats, like ski boats on lakes, they dont really have an understanding of yachts. They certainly had no grasp of someone actually taking a boat out of the country (I left a USAA rep extreamly confused and lost for words one day).

I was insured with BoatUS for a spell, they were good and rates reasonable (for a CD36 covering New England to the Bahamas was about $700 a year, but I had to tell them each time I entered a new region). Their tow insurance is a must have for everyone, even if not doing hull insurance through them. Insurance with them ended with the Bahamas though, I have been uninsured since.

Now I am looking at insuring with local companies in the caribbean, not yacht insurers, but the guys who insure the fishing boats down here. Thing here is US and EU based insurance companies force you out of the caribbean in hurricane season, but the companies that insure fishing boats dont, because of course the fishing boats still work in hurricane season.

[mahalocd36]

This is a potential money saver and many companies don't advertise this option because they would rather rate you for the more expensive territory.

Thanks for that Info.
That's a real eye-opener. We've always had BoatUS and always were insured "east coast of US to the florida northern boarder".
Good news is we didn't have the restriction of haulout dates or being on the hard for certain periods like some people mentioned but bad news is I think we were paying more for our policy than we needed to at this point. I'll give them a call.

[Evergreen]

For everyone's reference:

We just purchased Boat/US premium coverage for our new 1986 CD36. Their premium coverage will pay up to the value estimated by the surveyor at the time of sale.
Coverage area: North Florida border to Canada border.
Boat is kept on the Chesapeake.
Surveyed value of boat: $86,000
Highest deductible possible. (I believe it was 4%)
$10,000 medical coverage.
We are previous customers with no claims.
Cost of coverage: $1635

We also purchased their Unlimited TowBoat coverage and strongly recommend it. It was very economical. We made a VERY stupid mistake the second time we took the boat out and ended up solidly aground in gale conditions. We had purchased the coverage the week before and consequently did not have to pay a cent of the $1400 that it cost to get us off. The tow boat crew was very professional and careful with our boat which was my primary concern.

[Len]

$1650 seems awfully high. My insurance (STATE FARM) covers my 1999 Robinhood for ALL US AND CANADIAN waters to 75 miles off the coast for under a grand. I believe the main reason for this rate is that I use them for my home and cars, etc. as well.