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Saltwater Suzi and Cap'n Larry's advice for the cash-starved boater
Boat Insurance
Boat insurance, like all insurance, is a funny thing. You bet your boat is going to sink or get hit by lightning, or be involved in a collision. The insurance company is betting that it won’t. You hope to lose the bet.
Here are a few miscellaneous items you should know about insurance for your boat.
1. If your boat is financed, then boat insurance is mandatory. If there is no loan then insurance is optional unless you keep your boat at a marina. (See # 5.)
2. If you are purchasing an older boat, before you sign on the dotted line, check for insurance coverage availability. Many insurance companies will not insure boats over 20 years old, some over 30 years. Wooden boats are particularly difficult to insure so take that into consideration before you think about buying that classic wood boat.
2. If you are purchasing an older boat, before you sign on the dotted line, check for insurance coverage availability. Many insurance companies will not insure boats over 20 years old, some over 30 years. Wooden boats are particularly difficult to insure so take that into consideration before you think about buying that classic wood boat.
3. If you own an older boat and it’s about to go over the dreaded 20 or 30 year old mark, make darn certain you don’t miss an insurance payment. Or it may be difficult, or impossible to reinstate it.
This boat, Barefootin', owned by some good friends of ours was involved in a collision in the Bahamas. Lost the rigging, the mast and tore a gaping hole in the port side. They were very glad they had good boat insurance!
We have been fortunate in that we have not yet needed to use our boat insurance, other than one incident which I don't like to talk about which involved TowBoat U.S. and a foolish Captain (me). All I want to admit regarding that incident is that when your First Mate suggests that you might be out of fuel, it's a good idea to check.
Many people we have met along the way have not been so fortunate. Look at the boat in the picture on the right. A collision in the Bahamas, a tow all the way back to Florida, temporary repairs in Florida, then up the ICW to Maryland and Hartge Yacht Yard where the work took the better part of six months as I recall - (maybe it was longer) was what they experienced.
Friends' boats have been hit by lightning; run aground and damaged, and countless other incidents, including numerous collisions with which we are familiar.
What we are driving at here is, it's probably a good bet to have insurance on your boat. And there are some things you need to know.
Many people we have met along the way have not been so fortunate. Look at the boat in the picture on the right. A collision in the Bahamas, a tow all the way back to Florida, temporary repairs in Florida, then up the ICW to Maryland and Hartge Yacht Yard where the work took the better part of six months as I recall - (maybe it was longer) was what they experienced.
Friends' boats have been hit by lightning; run aground and damaged, and countless other incidents, including numerous collisions with which we are familiar.
What we are driving at here is, it's probably a good bet to have insurance on your boat. And there are some things you need to know.
4. Most insurance companies require a survey on a boat before they will insure it. You should always, always get a survey on a boat before you purchase it (unless it is a wrecked boat that you intend to resurrect. Then you should get psychiatric help. Just kidding.)
5. Many marinas require that you have at least liability insurance if you are going to stay at their marina. Some require minimum limits, for instance $500,000. However, many insurance companies will not offer only a liability policy. Liability means that if, due to your negligence, an accident were to occur the person or property you damaged is covered. For example, if you damage the dock or pilings while maneuvering your boat that is covered by the liability portion of the policy with no deductible. Damage to your boat is covered by the hull coverage with your deductible used.
6. Some policies cover towing so it may not be necessary to secure additional towing coverage. However, you usually have to pay the towing company and then submit your receipt to your insurance company for reimbursement. If you have TowBoat US or SeaTow you usually do not have an out of pocket expense unless the tow is more than your policy limit.
5. Many marinas require that you have at least liability insurance if you are going to stay at their marina. Some require minimum limits, for instance $500,000. However, many insurance companies will not offer only a liability policy. Liability means that if, due to your negligence, an accident were to occur the person or property you damaged is covered. For example, if you damage the dock or pilings while maneuvering your boat that is covered by the liability portion of the policy with no deductible. Damage to your boat is covered by the hull coverage with your deductible used.
6. Some policies cover towing so it may not be necessary to secure additional towing coverage. However, you usually have to pay the towing company and then submit your receipt to your insurance company for reimbursement. If you have TowBoat US or SeaTow you usually do not have an out of pocket expense unless the tow is more than your policy limit.
Well, at least this guy tied his boat up well.
Buying Insurance for your boat
1. The first company to check with is the company where you have your homeowners. They can usually secure you a discount for multi-policies.
2. Always shop and compare. Have these things at hand while you shop:
1. The first company to check with is the company where you have your homeowners. They can usually secure you a discount for multi-policies.
2. Always shop and compare. Have these things at hand while you shop:
a. Any certificates of safe boating classes you (and your family or others who will be using your boat) have taken. (Some companies, notably, St. Paul, will give you substantial discounts if you belong to the U.S. Power Squadron and have taken some or all of their advanced courses - the more courses, the better the discount).
b. Range of deductible amounts you would consider. The higher the de-ductible, the lower the premium (cost). Some companies have dollar amounts to choose from and some use a percentage of the of the hull value. (See insurance glossary if there are any terms you want clarified.)
b. Range of deductible amounts you would consider. The higher the de-ductible, the lower the premium (cost). Some companies have dollar amounts to choose from and some use a percentage of the of the hull value. (See insurance glossary if there are any terms you want clarified.)
c. Agreed value or actual cash value. An agreed value is usually more expensive and not available for older boats.
d. The location you use and/or keep your boat frequently affects the price you pay. Inland lakes and rivers are less than coastal areas. Some policies will only cover certain areas during hurricane season (June 1 to November 1 or in some cases December 1.)
d. The location you use and/or keep your boat frequently affects the price you pay. Inland lakes and rivers are less than coastal areas. Some policies will only cover certain areas during hurricane season (June 1 to November 1 or in some cases December 1.)
e. If you regularly use your boat in one area but want to travel beyond your policy area limits you can get a rider or endorsement to cover you temporarily. For example, our policy covers us up to 10 miles offshore and when we go to the Bahamas we call our agent and have a Bahamas rider put on for 2 months (or however long we expect to be there) at a very reasonable cost. So if you know trips like this are in your future, ask about this when choosing a company. Some companies offer no offshore coverage.
f. You and your families driving record affect the rate you pay. Insurance companies realize that if you have numerous speeding tickets and/or accidents you will be more likely to have accidents while boating.
g. Discounts for safety equipment like an engine room fire extinguishing system are usually available.
h. Boats with inboard diesel engines are generally less expensive to insure than ones with gasoline engines.
f. You and your families driving record affect the rate you pay. Insurance companies realize that if you have numerous speeding tickets and/or accidents you will be more likely to have accidents while boating.
g. Discounts for safety equipment like an engine room fire extinguishing system are usually available.
h. Boats with inboard diesel engines are generally less expensive to insure than ones with gasoline engines.
We encountered this poor fellow in Adam's Creek just north of Beaufort, N.C. near the Neuse River. This is called 'running aground' the hard way.
A boat owner’s policy can insure you against most risks of owning and operating your boat, its motor and its trailer.
These risks may include:
These risks may include:
·Sinking
·Storms
·Fire
·Theft
·Capsizing
·Stranding
·Collision
·Explosion
·Lightning
·Storms
·Fire
·Theft
·Capsizing
·Stranding
·Collision
·Explosion
·Lightning
The property covered includes equipment permanently attached to the boat as well as:
·Anchors
·Oars
·Electric trolling motors
·Extra fuel tanks
·Tools
·Oars
·Electric trolling motors
·Extra fuel tanks
·Tools
It can also protect you against liability lawsuits, should you injure someone with your boat or damage their property.
Liability coverage includes:
Liability coverage includes:
Watercraft liability coverage provides protection for legal liability because of an accident resulting from the ownership, maintenance, or use of your watercraft, including bodily injury, property damage and legal defense.
Watercraft medical payments coverage pays medical expenses up to the limits in the policy for you, your resident relatives and other occupants of the boat injured by an accident arising out of the ownership, maintenance, or use of the watercraft.
Watercraft medical payments coverage pays medical expenses up to the limits in the policy for you, your resident relatives and other occupants of the boat injured by an accident arising out of the ownership, maintenance, or use of the watercraft.
Additional coverages include those for:
Newly acquired watercraft covers your newly acquired watercraft for damage caused by an insured loss.
Reasonable repairs covers repairs incurred to protect covered property from further damage.
Emergency service pays up to $500 for reasonable costs that you incur resulting from specified emergency service to your boat, motor or boat trailer.
Many policies have a provision to help protect your boat from a “named storm” i.e. hurricane. They will pay the cost (some have a named price) of having your boat removed from the water and stored on land. If you keep your boat on the east coast during hurricane season this is a point to consider if you are comparing coverages of companies.
Reasonable repairs covers repairs incurred to protect covered property from further damage.
Emergency service pays up to $500 for reasonable costs that you incur resulting from specified emergency service to your boat, motor or boat trailer.
Many policies have a provision to help protect your boat from a “named storm” i.e. hurricane. They will pay the cost (some have a named price) of having your boat removed from the water and stored on land. If you keep your boat on the east coast during hurricane season this is a point to consider if you are comparing coverages of companies.
Because there are so many variables in insurance policies and any one company may not have just the right coverage for your situation, you need to decide what coverages you want and shop from there.
Bear in mind that all insurance companies are good at accepting premiums. Not all are good at paying your claims.
Know that there are Insurance Companies and Insurance Agents. Some insurance Agents represent only one company. Some insurance agents represent several companies.
Obviously, in any case you are going to be dealing with an agent if you deal personally. You need to ask questions of anything you don’t understand. You need to ask for discounts. Most are not going to just offer them.
On the internet, it is more impersonal, and you must make sure you’re more knowledgeable so you know exactly what you’re buying - so you don’t pay for something you don’t need or need something you may not realize.
With this in mind we offer some suggestions for Insurance Companies to consider. These are companies with which we are familiar and we feel have a good track record for low premiums and making good on claims.
Bear in mind that all insurance companies are good at accepting premiums. Not all are good at paying your claims.
Know that there are Insurance Companies and Insurance Agents. Some insurance Agents represent only one company. Some insurance agents represent several companies.
Obviously, in any case you are going to be dealing with an agent if you deal personally. You need to ask questions of anything you don’t understand. You need to ask for discounts. Most are not going to just offer them.
On the internet, it is more impersonal, and you must make sure you’re more knowledgeable so you know exactly what you’re buying - so you don’t pay for something you don’t need or need something you may not realize.
With this in mind we offer some suggestions for Insurance Companies to consider. These are companies with which we are familiar and we feel have a good track record for low premiums and making good on claims.
·Detachable canopies
·Seat cushions
·Life preservers
·Skis and their tow ropes
·Dinghies.
·Seat cushions
·Life preservers
·Skis and their tow ropes
·Dinghies.
Lightning strikes fear into the hearts of most mariners, especially sailors with that 50 foot lightning rod extending all too invitingly up into the sky. There are many theories on methods to protect your boat against lightning. None of them works.
The following are in no particular order - we do not necesarily favor one above another. Each boater has different needs and each company has different offerings. It is up to you to decide which company is best for you. We recommend that you make an application at each company and see what they have to offer.
The first we would recommend that you look at is BoatUS, one of the most trusted names in the boating industry. We have personally dealt with the TowBoatUS and will continue to do so. We feel it is one of the best bargains in the industry. Please click on the banner below to apply and get a no-obligation free quote.
The next we recommend is only if you are a member of the U.S. Power Squadron. Even if you don't want their insurance, their boating courses are worth every penny and every minute spent. It's a good organisation and we recommend you join. For each course you take you can save money off of your boat insurance premium. The courses and the amount you can save are as follows:
* Weather - 2.5%
* Sail - 2.5%
* N/Full Certificate - 2.5%
* Annual Vessel Safety Check Certification - 3%
23% Total Annual Discount
* Sail - 2.5%
* N/Full Certificate - 2.5%
* Annual Vessel Safety Check Certification - 3%
23% Total Annual Discount
* Seamanship - 2.5%
* Piloting - 2.5%
* Advanced Piloting - 2.5%
* Marine Electronics - 2.5%
* Engine Maintenance - 2.5%
* Piloting - 2.5%
* Advanced Piloting - 2.5%
* Marine Electronics - 2.5%
* Engine Maintenance - 2.5%
If you are a member of U.S. Power Squadron - click here to apply for Boat Insurance.
If you would like to become a member of the U.S. Power Squadron click here to JOIN.
If you would like more information about the U.S. Power Squadron go to their Home Page.
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We've no personal experience but have had good reports on Progressive Insurance
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If you own a wooden boat, many prefer to call them "Classic Boats," there is only one place we are aware of that will insure them for you: Hagerty Insurance Hagerty supports the Antique and Classic Boat Society and offers a 10 percent premium discount to all members.
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