Insurance Premium Time, Again

[jim rosenthal]

I called BoatUS Marine Insurance and spoke with an underwriter just now. You are correct. The only additional distinction is that the depreciation applies to parts, not to labor. So, as I understand it, it my boat suffered a lightning strike and the repair estimate was $50,000, the depreciation (which at this point WOULD be 80%, indeed) would apply to the replacement parts. It would not apply to the labor.

Much of Blue Note's electrical system has been replaced at this point, certainly within the last twenty years. So depreciation would not apply to those parts, providing I could document that they were less than twenty years old (a good reason to keep ALL your receipts!) But, insurance companies being what they are, I would expect to have a fight on my hands, and for them to use the policy language to try to evade paying for as much as they could in the way of repairs and replacements.

The concern expressed earlier in this thread is appropriate. Insurance companies will always 1) charge as much as they can possibly get away with and 2) pay out as little as they can on claims. I had a minor fender-fender recently with my old Toyota truck, and the process of getting them to pay for a proper repair has been convoluted to say the least. Ask Quentin about his opinion of insurance companies.... he's had more contact with them then he would like to have had.

All in all, a very instructive thread, to say the least.

 

[Pete]

Thanks Jim for the clarification on labor costs. Bottom line it appears that starting at year 20 the owner becomes a coinsurer, and at year 28 and beyond, the primary property damage insurer, for sure.

Based on my limited searching, I have not found a less severe depreciation clause. If another member knows of better "old" boat depreciation schedule, please let the group know.

 

[krush]

I just got my BoatUS renewal policy in the mail. Since I bought my boat 3 years ago the policy has gone from 1100 to now 1839 for 55k value, 500k liability. In VA up the calm river and mostly fresh water. I'm getting quotes from the companies listed in this thread. Boat is on blocks now so a survey is possible. I'm asking for 80-100k value on my quotes (replacement cost would be even more...the boat is re-powered with cummins)

If the depreciation stuff is true, I may as well self insure. Boat lives at my dock, no risk of other idiots crashing into it.

 

[SKYCHENEY]

Krush,
Try these guys:

https://www.unitedmarine.net/boat_insurance/

 

[krush]

Krush,
Try these guys:

https://www.unitedmarine.net/boat_insurance/

I did (I said I contacted those mentioned earlier in this thread lol)! Gotta wait for business hours for them to get back to me. With that said, they were higher for my runabout.

 

[SKYCHENEY]

Kind of an old thread. Didn't realize I already posted that.

 

[jim rosenthal]

The problem with self-insuring is that you don't have any liability insurance. You are somewhat caught in a catch-22 situation here, because if you just try to get an umbrella liability policy, they will require certain minimums on your car and boat insurance- in other words, you can't get the umbrella policy, in my experience, unless you already have the basic policy in place.

Have you had a discussion with Boat US about this? You might point out to them that 1) since the boat is already hauled you would be willing to have a survey done to establish the higher value 2) you don't mind paying a higher premium IF AND ONLY IF they will agree to a higher agreed value 3) you are shopping around for a new policy.

Half of something is generally held to be worth a lot more than all of nothing, and I would point it out to them. My experience is that they will deal.

 

[Boatsb]

Liability only. Why not.

 

[jim rosenthal]

Is that available, like on cars? I have no idea. I have never seen it, but that doesn't mean anything- it could well exist and I didn't know of it. It would be worth looking into.

 

[krush]

The problem with self-insuring is that you don't have any liability insurance.

Sorry, I was ambiguous. I meant "self-insure" the hull/loss/damage of my boat and get a liability only policy.

Your other points are valid, and I did read above where you said call up BoatUS, and I plan to give them a call this week.

 

[Briankinley2004]

You can get a liability only policy on a boat much easier than full coverage. I thought I was going to have to go that route but found a broker that was able to get me on with Geico for just under 3 grand for 88K coverage and 5K deduct. Still wonder if its worth it

 

[riverrandy]

Well apparently they dont like rednecks or the Gulf of Mexico. This is their reply

Thank you very much for your inquiry off the website.

I have reviewed the information provided in your submission & unfortunately we do not have any available markets that would be in a position to assist with this. Sorry we will be unable to help out.

I went through that same process back in December, and got that response from numerous insurers. Interesting all the forms I had t fill out to try. Boat US (which is Geico) gave me an instant quote with out care of age of vessel or captain, any survey, or any other factors. When the quote came back for a $150,000 value for $1,200. I was so excited! Turns out that was per month over a 12 month period!!!

Went with Voyager Marine Insurance out of Texas [800-342-4444]. I had to supply recent survey, operators experience, and home port, but turned out very reasonable. about $4500 total for the year.

On my other boat, I had an electrolysis claim with Geico when the water heater shorted out after I moved off the boat. they fought tooth and nail but were very accommodating over the phone. Their surveyor made a bigger deal of it then it was, and some how pushed us to a yard that was run by her friend!?! anyway claim was denied but insurance did pay for the haul and block! Big Insurance is a scam.

 

[krush]

Big Insurance is a scam.

Insurance used to be a service, often provided by clubs that limited the participants. But then it became a profit center for the money changers. I'm sure the ZIRP (zero interest rate policy) has caused more fund managers to turn to insurance industry to get returns for their clients. Every dollar they don't pay out is a dollar in their pocket!

 

[chuckbullett@gmail.com]

Here in SF, Geico/Boat US is about $2500 annually at the moment on our 1978. Given the new 80/20 things I am reading about for vessels 20-Plus years-old, perhaps we’ll start shopping around. Renewal is in August for our 53MY! Soon to be a 42-year old boat!Chuck B

 

[Scarlett]

Wow listening to what you guys are paying for insurance is amazing. Seems like everything in California is more expensive except for boat insurance. Our policy is for $200,000 value full coverage for just under $2000.00 a year in San Diego. I guess when you remove weather from the equation the price comes down pretty fast. John

 

[krush]

United Marine Underwriters

http://www.unitedmarine.net/

325k agreed value,2% deductible, $1750, US inland and coastal waters.

They replied to me no market because of age of the boat. Nothing for lower agreed value, not even liability only.


ALSO: what the heck is up with insurance companies only wanting to insure for the PAID value of the boat, even with agreed value policies and a survey showing the true value of the boat?

 

[Boatsb]

Fall atlas in cocoa. Ask for Jim or Rusty. They're pretty good at finding solutions.

 

[Boatsb]

Call atlas in cocoa. Ask for Jim or Rusty. They're pretty good at finding solutions.

 

[Jammin']

Boat US/Geico on our 46 year old 43DC was $900/year, but they would only insure the vessel for $41K. That was selecting the highest liability limits. Home port in Virginia.

 

[Avenger]

ALSO: what the heck is up with insurance companies only wanting to insure for the PAID value of the boat, even with agreed value policies and a survey showing the true value of the boat?

Probably something to do with that old "It's only worth what someone is willing to pay for it." thing.

At least when it's in the insurance company's favor.