Insurance Alert

[Brian Degulis]

I just came up for renewal I was with Great Lakes and they wanted a new survey. So I got the survey and shoped it Great lakes went up from $6500 to $8000. Boat US was $6900 identical coverage $400,000 1,000,000 liability but boat US has a higher "named storm deductible" They're 60,000 Great lakes was 40,000. I'm going Boat US I just think it's better. When we purchased in 06 Boat US was $14,000 Great lakes was $7,000. Boat US has reduced rates in some cases by 1/2.

This is on a 1985 61' MY in FL

Brian

 

[Genesis]

Boat/Useless lost virtually ALL insurance business in the gulf coast area after Ivan; they were paying claims on boats that were almost literally tied up with clothes line and were total losses, and thus their renewal rates reflected this.

In addition they were reducing declared values - in some cases by as much as half - around here due to the number of boats they were "sold" during that storm. While I didn't get hit with this bit of robbery I know a few people who did and discovered it only after getting their new declarations page. To say they were pissed would be the understatement of the year.

It appears that the loss of policies has finally ovecome their foolishness and they are now being more reasonable. That's a good thing.

 

[stormchaser]

Boat US was BY FAR the least expensive for us, for a declared value policy.

 

[Angela]

Boat US was BY FAR the least expensive for us, for a declared value policy.

And for me, Boat US was the most amusing quote I ever got...$18,000/year for $225,000 coverage with a huge deductible.

 

[fissioneng]

For the last 12 years and 2 boats, BoatUS has always been higher priced. Markel beat them every time for the same coverage.

 

[SeaWhisper]

Markel by far was the best deal for us here in the N. Carolina.

Mike,

SeaWhisper

 

[jim rosenthal]

BoatUS has always been competitive here, and I have stuck with them. But you have to watch them carefully. In between congratulating themselves publicly on how wonderful they are, they attempt some pretty slippery stuff. I have fought with them at least twice about the value of Blue Note, and (sort of) prevailed, but it hasn't been easy. When I last checked, they did not use email and were very difficult to get in touch with; the person who answers the phone can NEVER help you, they discourage your talking to an underwriter, etc. They are not a particularly transparent company.

They are not an actual insurer, if that's not obvious. They are an insurance broker, and like all insurance brokers they are going to shop around for the cheapest product they can find that will do the job. I suspect they took a lot of heat from their insurance companies about some of the boats they'd accepted for insurance, when they had to pay the claims that Karl mentioned above. As we've discussed, a lot of boats that had been for sale were left for the storm to take when the opportunity arose.

My guess is that they are now far more careful about the business they write, and maybe their rates and which boats they'll insure reflects that. But they'll still step on their own privates from time to time (see Ang's note above)

 

[buzzk]

In the past Boat US was always higher with the same coverge for me in NC. Charter Lakes gave me the best price for started value.

 

[Brian Degulis]

Price and insurer depend an awfull lot on location. I'm in FL and there are only 2 companies that will write us Boat US or Great Lakes/ Atlass. It used to be easier before all the storms. Companies like Marckel were very competitve but they no longer write in FL. The insurance on my commercial buildings has gone up X6 since 2003 and there is just one foreign company that will write it.

Brian

 

[Trojan]

It's got to be location. I find that Boat Us is the cheapest around here. Last year it went down $300. bucks. They said it was Because of zero claims. I wonder what this year will bring? Still no claims. I have not received My new papers yet for this year. $1100. for $100,000. .
BILL

 

[SKYCHENEY]

It's got to be location. I find that Boat Us is the cheapest around here. Last year it went down $300. bucks. They said it was Because of zero claims. I wonder what this year will bring? Still no claims. I have not received My new papers yet for this year. $1100. for $100,000. .
BILL

I don't know, Bill. I have Auto Owners and have had for the past 5 years. Boat US can't touch it.

 

[Boatsb]

2 years ago I was quoted $5700 for $50k with an $11K deductible for storms. No reason to even consider that so I went commando ( liability only) and never regretted it. 10% of the value per year was just stupid. FWIW they would not insure it for more or less value and demanded a full survey before they quoted me. Wasted my time and money. The only thing I added was a CO detector in case some gas boat comes near me.

Insurance is a game and I decided to take my ball and go home. Liability makes sense but the required $500k of my marina is a bit too much for reality. I carry what I have to and no more.

 

[stormchaser]

Maybe also experince? I've got 27 years of experince, and a 100T Inland Master. ~$1,400 for $200,000.

 

[spindrift]

Interesting comments on this topic. Boat US principal carrier is CNA insurance. Atlas uses ACE insurance frequently. The real way that you can reduce premiums is to get the boat out of the hurricane zone at key risk points in the year. Baltimore Dave proves this out as his policy is for the Chessie only. Much lower risk probability for the carriers being in Baltimore vs. Miami in August.

My key clients are insurance companies; I understand and advise them on underwriting practices. The best way to get your premiums down is to have a very robust risk management plan and personal experience. A USCG license is one bet, attending the Chapman school for a long weekend boat handling course is another. Couple this with a well written storm/ risk management plan and you will give a lot of power to your broker when he submits your bid to the underwriter.

A good storm risk management plan would include: where you move the boat to in the event of the storm (you might have hauling arranged at a good yard), how you are going to remove and secure key items from the boat (dingy, dodgers, anything that can go flying) and reduce windage. Closing all but necessary sea-cocks, back up emergency bilge pumps, etc. etc.

I understand that much of this seems intuitive but if write the plan up with some input from your insurance broker and then present to the carriers' underwriters it demonstrates that you are a thoughtful yachtsman and owner, and will reduce the risk (especially moral hazard) to the carrier.

I have taken this approach in the past with a 52 that moved between Grenada and Maine. It worked well and really reduced my premiums.


Cheers
Spin

 

[stormchaser]

Will they really accept a written plan of action? I have already have a written plan of action (with a checklist) for named storms...it helps me keep things together in times of high stress (which is when we are most likely to forget a critical item)...I just never thought of giving it to my insurance carrier...never thought it would matter.

 

[Genesis]

Markel wanted one from me - it was a condition of coverage. I already had it and just forwarded it over.

 

[nyrussell]

Just got it from Boat US (shrugs as our other coverage was more for larger deductible)

$150,000 Hull for $1300 with 6 pack near coastal (I do have to join the USCGA for a coxwains deal too) LOL

Oh yes a 1% deductible with $800,000 liability

 

[TopHattandTails]

Got ACE - love the latent defect coverage. $350k for ~$5k premium. Great Lakes, can't go South of Tappenzee Bridge, and must be hauled by November 1.

 

[nyrussell]

Hmmm, just a lil too North of us then for a veeset

LOL

 

[akintosyali]

Any ideas on insuring a boat over 40 years old in Chicago? Has a 2 year old survey on it.. I am with Hagerty, and the premium for a is really high..