I am not sure where you got that. Liability is substantially less than full coverage.
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I spent a good while on the phone with Geico/BoatUS today and got some details:
They're not insuring boats over 40 years old anymore. So, my prospective 1984 still qualifies.
They're not insuring boats over 50' anymore, either. So, the 52C is out of luck. However, they said they'll "probably" honor my quote and insure the boat only because I got a quote just before they closed the door. Honestly, if they weren't fond of an 18 month old survey the seller gave, they probably would have told me to pound sand.
So anyway, screw 'em. If I get the boat next week, I'll eventually replace the policy wherever it saves me a buck.
I looked at my BoatUS/Geico policy and consequential damage is covered. In your example, they will not pay for a bilge pump that wears out, but will pay for the boat if it sinks. A better example would be if a raw water hose were to burst (or a more recent discussion, a PSS seal fails). A failed bilge pump wouldn't result in a sinking generally, unless it was accompanied by some other failure that lets water into the boat.
Specially...
C. Exclusions
1. Coverage will not apply to any loss, damage or expense caused directly or indirectly by:
a. Wear and tear, gradual deterioration, rot, corrosion, weathering, electrolysis, stray electrical current regardless of source, vermin, animals, marine life, insects, mechanical breakdown, electrical breakdown, structural breakdown, overheating or galvanic action. This exclusion does not apply to immediate consequential property damage resulting from fire, explosion, sinking, demasting, collision or stranding;
GEICO is sponsored by Boats U.S. Ever since they became tied together at the hip the product they push has IMO gone downhill. I worked in the insurance field for over 30 years, several of those years as an underwriter, so I do understand underwriting issues but the supposedly largest advocate of boating has abandoned it's mission. Maybe it's time to stop supporting Boat's US.
There are many other better quality and better priced policies then geico/boatus.
So that’s about a 5% premium. This is insane. The whole insurance market is upside down. How can anyone justify and explain such premium when insurance companies insure newer larger boats for HALF A PERCENT of hull value!! The 2009 84 footer i run is insured for close to $3M for a premium of about $15k.
I have been with United Marine Underwriters for probably about 10 years
https://www.unitedmarine.net/boat_in...cht-insurance/
It's a total ripoff...especially for a maintenance nut like myself.
Noted...and thanks.
I've forgotten a lot, after taking 10 years off from boating. I had a 45 Key West #1 in a corp. insured with them for Hurricane Charley. Nothing happened to that old tank but a bunch of scratches from stuff hitting it and some piling rash. They eagerly paid for a total repaint.