Boat Insurance

[zabooda]

Waterways have rules and there is fault. The basic rule is the right of way and required boat training teaches this.

One thing to remember is anything that can have separate coverage like a boat or motorcycle is not covered when it is at your house except by the boat insurance. So if someone were to steal stuff out of the boat, steal the boat or the boat gets damaged from fire or windstorm you are out of luck if you don't have coverage specifically for the boat. Basically anything that can be licensed is not covered by homeowners insurance. I found that out with my street legal dirt bike as Washington doesn't require insurance even on the road for motorcycles so I never had it since I don't drive it much on the road. I found out I wouldn't be covered by homeowners if the bike would be stolen out of the garage so now I have coverage ($60/yr).

Trailers are not covered by homeowners either as they are licensed. I have a utility trailer that is not covered but it is too ugly to steal.

I think some people have uninsured on their boat policy and I'm not sure what the police do about an accident with no insurance.

[thesack]

One thing to consider when shopping for insurance is what happens when you make a claim? Do you have to play phone tag with someone across the country or is there a local agent/adjuster you can talk too? Do they try and purposely have you sign a document before repairs are made so that their liablity is potentially less or do they just pay the bill? Etc.

I have Progressive insurance, do not remember off the top of my head what the yearly premium is, but they are a good company to work with. They give you a few different options to meet your budget. They have local adjusters, so when a claim is made it is quicker and getting things repaired. Plus they cut a check to the repair shop after they do there assesment (if it is repairable).

From my experience from my claim against a person insured by Boat US, I would stay away from them. They are hard to get a hold of, do not return phone calls when they say the will, want you to sign a liability release form in order to pay for repairs (which is illegal), and take a their time to get their ducks in order to approve a claim.

Most states do not require boats owners to have insurance (If you have a loan, most lenders require it). So if someone is uninsured they are responsible to pay the bill to fix your boat out of pocket either by them doing it willingly or by being sued by you or your insurance company. When my boat was hit by the Tige there was questions as to whether or not he had insurance, so when we notified Progessive of the accident the told us that they would pay for the boat to be repaired, have us pay the deductible, then sue him and recover the cost to repair the boat and the deductible amount. And the majority of boating accidents are boat on object and not boat on boat.

[yearround]

we have progressive, $437 annual. i have never had a claim, so i don't know how well they will handle things. my brother had a claim with with progressive, things went very well and timely.

[bergermaister]

I have Pemco - same as my auto and home so they shave off a little for a multi-policy plan. $31.50 a month so ~ $380 a year and I actually have it over-insured from market value by about $10k to factor in things like stereo gear, boards/surf, any camping gear that is riding along, oh, and the gold bricks I use for ballast.

I have had a few claims years back and was very worried about being dropped or gouged at renewal both times. However I was not at fault on either one and no personal injury or 3rd party damage or anything like that.

Worst one was a bottom hit to the tune of $5500+ in repairs in 2009. My rates went up a whopping $15 for 2010 (total) which I was MORE than happy to pay. I could not imagine having to cough up that kind of dough if I were uninsured...

I must say that the adjuster at Pemco was asolutely awesome - 10 out of 10 perfect. I was in line for repairs at AWS and they said it could be 4-5 weeks before they could touch it because of others before me. This was the first of August. My adjuster stopped by the day after I dropped it off, approved it and had a check to me in 2 days, putting me to the front of the line at AWS because my claim went through so much faster than any of the others there and I was back on the water in just a little over a week!

[kaneboats]

So many companies have forgotten that customer service breeds loyalty. I know they have bean counters looking over their shoulder that can only see from one quarter to the next, but do any of them really think that screwing their own customers is going to work even in the short term? If you look at insurance companies -- I don't know if they write marine or not -- but Amica is always #1 in customer service. They have unmatched loyalty but they treat everyone from customers to vendors to tort defendants with respect. You would think some of the other ones would learn the lesson.

[trevormcfar]

Although I live in Alberta, the principles of insurance will be the same in the USA... You get what you pay for. I buy insurance clients and our brokerage has been in the business since 1973. I have boated all my life (I am 37) and trust me... there are HUGE differences between boat policies. Anyone know Marine Law? Up here in Canada (not sure about the USA, but I have to assume its very similar) there is a small thing called General Salvage. The law dates back many years ago, and not many people who use inland waters only know about it... In a nut shell, if you are stranded on the water and have someone tow you in without a pre-negotiated agreement... the guy (or girl) who tows you can claim salvage up to 25% of the value of your boat!! Believe it or not, but its true... Many commercial fishermen on the coast know about this and they all listen to the "mayday" station... If they are close enough to help... it could be a nice payday! Anyways, my point is, is that you are not dealing with cookie cutter type insurance. Boat insurance is a specialized product and you need to be dealing with a broker who understands the risks and potential issues with the sport. I read on another post where someone has insurance through their homeowners policy... Your homeowners policy is 99% of the time the worst place to insure your boat. Other issues to consider is the basis of claim settlement. Replacement cost does not always mean a new boat... Most companies will not offer RC (replacement cost) on older boats (3 years or older). Others will only offer the coverage up to the limit specified on the declarations page (policy). Tarps and covers also have special conditions... Like jewelry, if you don't know your jewels, then you better know your jeweler... If you don't know insurance, then you better know a good broker (or agent). Some good companies we deal with are Premier Marine, Beacon and Oceanic... If you are paying less than $400.00 for a $50,000.00 boat, then chances are you do not have the right coverage for your boat. $50,000.00 boat, plus contents of the boat & the trailer should be anywhere from $400.00 to $800.00 (Canadian) tops...
Key point is you need to shop around and ask them to send you a copy of the wordings... Play close attention to the exclusions and the basis of claim settlement sections... The wordings should only be a few pages long and the read is well worth it... It could mean the difference between a new boat and an actual cash settlement leaving you with thousands of dollars out of your pocket... Everyone does so much research on speakers and all other types of aftermarket products... The most important item on the boat is the insurance and most people spend "0" time researching it. You get what you pay for... Just my .25 worth.

[trevormcfar]

Another good example of a claim that may not be covered under a homeowners policy is if your boat sinks... By law, that boat has to be recovered (oil/gas etc...) the cost to bring that boat up from the bottom needs to be insured as well (and can be with the right policy)....If not, can you imagine the costs?? Just because you have your boat insured along with the contents and trailer... does not mean your fully protected....

Another example is some insurance companies will reduce the liability limits while you are towing a skier. Nice eh! This is when you may need it the most if your skier is hurt! Again... Know your policy inside/out...

FYI...

[zabooda]

Good info trevormcfar. I learned a lot over time and sometimes I feel lucky I got by with what I had. With insurance, what a person doesn't know will hurt them. You need to look at the insurance riders that are a available and ask why or why aren't these riders necessary. You'll find that you may need extra coverage for skiers. If you rely on homeowners insurance you need to check the policy as my policy which is similar to most will pay $1,500 for the loss or damage to a boat. That's your consolation prize in the game of losers. The insurance companies want you to take out a separate policy for anything of value whether it be a boat, jewelry or guns.

[rdlangston13]

wow, i have progressive and pay 864 a year...looks like i am getting majorly screwed! is there some kind of age discrimination thing with boat insurance like there is with car insurance?

what minimum coverage do yall suggest i get? i think i am going to start shopping around for a better rate!

[kaneboats]

They look at your credit and your driving rating. I have progressive and it's under 500.