2020 Insurance Renewal

[Passages]

This is always a fun topic - especially if your boat is over 15 years old and you keep in in Florida.

It's not all good news, but it's not horrible either.

According to my broker, this is what we have to look forward to:

The Florida market is down to 4 carriers. Shopping around will not take long.
Vessels over 15 years old will be harder (not impossible) to insure.
Vessels over 70' will be harder (not impossible) to insure. There may be a clause requiring a professional captain to operate the boat.
Actual Cash Value in now the rule. (You're not getting new for old anymore)
Switching carriers is not easy. Some will renew but not take on new customers If you have a carrier that that is willing to renew, that will likely be your best option.
Premiums will go up between 10-100%.

For me, it was not too bad all things considered. My carrier will renew, premium increased 13% and I lost the 'new for old" replacement clause. I will only get 20% of material compensation but 100% labor covered.

 

[Dan Mapes]

When BoatUS went with Geico we got out. I often wonder about rates in other states like Texas, Alabama and Louisiana. I know up North it gets much better. But Florida with a Bahamas endorsement was killer. Granted a Bahamas endorsement is crazy if you want to hit the Abacos (post Dorian) but a couple of month trip to the Exumas must be costly these days.

 

[Passages]

My approved cruising grounds is Florida & Bahamas. My premium is 3% of hull value.

I asked my broker if there was a real advantage to going north during hurricane season to save on insurance. There really isn't. You will likely see a 20% savings in premium which is far less than the cost of moving a boat 500 miles north.

 

[RonNP]

My carrier in California quit insuring yachts, Old Reliable Insurance. I"m now with some outfit called New Hampshire
my premium went from $2800 to $5000 a year for same coverage, same deductible. Less competition sucks

 

[Pascal]

Insurance makes no sense. 3% of value on older boats but on bigger newer boats Like the 84 footer I run it s 0.5% of the boat value... incl occasional charters.

 

[SeaEric]

My renewal with Markel jumped 20% for the third year in a row. My agent sent me to New Hampshire at a premium where i was back 3 years ago. Geico BoatUS advises that they no longer write boats over 50 years old.

 

[Avenger]

If that's the case it looks like this will be my last year with them.

 

[racclarkson@gmail.com]

I’ve been with NH for three years. It’s been a good value viz others. Last year I claimed the max $500 hurricane relocation provision. No surprise my premium this year increased ... wait for it...$500.

 

[krush]

If that's the case it looks like this will be my last year with them.

Hopefully it is just issuing new policies, and keeping existing renewals. And apparently it is impossible to get liability only coverage on older/"bigger" boats?!?

 

[Dan Mapes]

Given the cost of fuel to relocate North for H season it did not make sense for us. But the Florida and Bahamas endorsements were pricey.

 

[jmooney]

You can get liability only , but you might have to change company. The insurance brokers don’t want you to reduce what you’re paying now. I have had liability only for over ten years. It only went up last year from $700 to $850 this is with Markel . This tells me that they are being squeezed, and searching for money. Another bad hurricane season and no insurance will be available.

 

[Passages]

My carrier in California quit insuring yachts, Old Reliable Insurance. I"m now with some outfit called New Hampshire
my premium went from $2800 to $5000 a year for same coverage, same deductible. Less competition sucks

I'd be thrilled with a $5000 premium on my 1988, 63 MY. Insurance went nutz in FL after Irma in 2017. 2018 was not a bad storm season and my premium went down $1000. 2019 was Dorian, and even though it did not hit the US too hard, the devastation it could have caused spooked the insurance industry.

 

[Passages]

Insurance makes no sense. 3% of value on older boats but on bigger newer boats Like the 84 footer I run it s 0.5% of the boat value... incl occasional charters.

We had a 75' Lazzarra at the club that recently sold. Insurance was one of the deciding factors prompting the sale. Said he had to pay $20,000 for coverage. I believe it was early 2000's vintage and sold for around $500k,

 

[captcrunch]

As an insurance broker, one of the driving costs of insurance ecspecially in Florida aside from storms is theft. With an abundance of multi outboard center consoles there has been a rash of motor theft claims which is also driving premiums aside from the storm damage. The fact there are many “absentee” owners also drives rate. I’d be glad to answer any insurance questions anyone may have.

 

[Passages]

Can you confirm that Florida has only 4 carriers willing to service this market? With so many boats in FL, there must be money to be made despite the risks.

 

[Pascal]

We had a 75' Lazzarra at the club that recently sold. Insurance was one of the deciding factors prompting the sale. Said he had to pay $20,000 for coverage. I believe it was early 2000's vintage and sold for around $500k,

$15k for a $3M 2009 84...

 

[Passages]

$15k for a $3M 2009 84...

I'm at $8500 for a 1988, 63 MY with a Hull Value of $285k.

You are correct, it makes no sense.

 

[captcrunch]

There is a very limited number of carriers but more then 4

 

[tonytrakovich]

$15k for a $3M 2009 84...

pascal. That seems like a decent price to insure that boat. Who are you with?

 

[bigbill]

If that's the case it looks like this will be my last year with them.

they told me as long as you stay current with them you are grandfathered in and they will continue to insure