Insurance? No Insurance for You!

[spartonboat1]

So I am calmly watching a Youtube video about marine insurance, and I hear "GEICO no longer insures boats over 40 years old"! Instant attention!

In turn, I called Boat/US-GEICO to check on this. Note: I realize there is a thread in Fall, 2020, about this, but this situation is new to me. I was notified that No, if I tried to insure a 1981 or older boat, they would NOT underwrite it! Yikes. They said their policy (now that is), is not to Drop insurance on older boats, provided you are currently insured with them. Well, I have been a member of Boat/US, since 1997 and have gone through their different insurance brokers. Then came GEICO in 2016. But I did not know that GEICO had purchase Boat/US!

So, for starters, our friendly Boat/US, defender of boaters to Congress, etc., is no longer independent, since GEICO "acquired" Boat/US in 2016, as I understand it. So that leads me to believe that Boat/US is no longer the Lobbyist for Boaters, that they once were, or at least not nearly to the extent as previously.

I called GEICO to get a quote on a boat, a 1983 53' Hatt. Even thought I am currently a Boat/US member and GEICO insured, I had to provide name, phone #, address, age, SS#; all in their records. Then I said all I wanted was a rough quote. GEICO rep blew me off and said I was uncooperative and would no longer speak to me; hung up they did! So I hope this boater-related social media post does not result in my insurance being cancelled!

I then called my home & auto insurance office. He said they will insure the older boats, but get their quotes from "Markel"; requires a survey, which I understand. I then called a well known Classic Car insurer, Marine Div, and they said they will underwrite the older boats with, you guessed it, with Markel. Truth be known, I had never heard of Markel.

Finally, in my travels in the IT world, I have worked with insurance companies and their actuaries. I would be curious to know how some of these older Hatts, some of which are pristine, are more of a risk than the newer boat; at least, acturarily. New boat, total loss $800k. Older Boat: $200k. So that I why I wished to obtain a quote. Are the premiums on a new $1M yacht sky-high, vs these older boats. Curious.

Well, that is my post. And definitely a damper on both my search, and well as my reviews of older Hatts, in this case a 53'. Seems as if insurance would be an important part of the ownership!

 

[Briankinley2004]

I had Geico and my agent told me that they would not be able to renew under Geico because they no longer allowed independent agents to rep them. I called Geico direct and they said that is true but they still would not renew me because my boat was too old and too big (1985 55C). My agent got me coverage but required an in the water survey and a sea trial. Originally asked for a hauled survey only. When I told them I had to travel 30 miles to a lift that could handle me and that the cost of the trip and hauling would be almost as much as the insurance they agreed to the latter. I was about to go liability only until they agreed to this. Sent the survey in yesterday so hopefully I will have coverage before the Geico expires.

 

[captcrunch]

Geico/boat us basically wants to write small boats on lakes. There are options for our older Hatteras’s more if not in the southeast or gulf coast

 

[Captain Ralph]

Interesting. Geico direct said they would continue/cover my 1978 Bertram my.
Slight increase in cost.

For just a bit more, My agent found even a better full coverage policy with American Modern.

Everybody wants a new survey.

 

[rob71]

Going for survey on Monday. GEICO dropped me for same reasons as above.
Was paying $2,600 new quote from broker was $6,600.
So, I am going liability only.
Spending the saved $$ on new fire extinguisher systems and oversized dewatering pump.
Capt. Rob

 

[Briankinley2004]

Interesting. Geico direct said they would continue/cover my 1978 Bertram my.
Slight increase in cost.

For just a bit more, My agent found even a better full coverage policy with American Modern.

Everybody wants a new survey.

What length? They told me the length/size in addition to age.

 

[Captain Ralph]

What length? They told me the length/size in addition to age.

In old units of measure (stem to stern), I'm 58 feet long.
That is not the swim platform and bow anchor roller.
Also remember, we were in Jacksonville, now Satsuma Florida. The last direct hit named storm (from the ocean) was Dora in 1964.

Sadly, any excuse could work for not insuring in Louisiana.

 

[Briankinley2004]

Interesting. Im 55 not counting pulpit, etc and no swim platform. I have been in FL for two years and changed my hailing port with USCG.

 

[Retired1]

The Insurance Industry is a total scam. They bank billions, if not trillions of dollars in profits every year which they invest in other investments which pays them even more $$$$. Do they share those profits with their customers who gave them the money? No is the answer. Then when they have actual losses they raise the rates on those customers who weren’t effected to cover their losses, and drop coverage on the ones who were.

 

[Captain Ralph]

Interesting. I have been in FL for two years and changed my hailing port with USCG.

Your forum data still says [FONT=&quot]Port Fourchon[/FONT][FONT=&quot][/FONT]

 

[spartonboat1]

So, since I bought the boat, in 1997, I probably have paid premiums to Boat/US, granted not all were GEICO, totaling $25-30k. I did not have any claim, which exceeded the deductible, until very recently, due to high winds. After deductibles, their payout has been about $4k. Avg $28 paid in, minus $4k out: I think they did OK. Also, as we all know, mechanical issues, blown gasket, overheat, etc. is out of our pocket, I believe.

Finally, interesting fact, insurance companies do not carry "Accounts Receivables"- why you ask? Because if you don't pay, they don't cover you!!

You would think there would be a profitable venture here, insurance wise for someone. Furthermore, my Auto insurer says, by far liability costs far exceed repairs of autos damaged. E.g., a major liability payout might be in the 100's of K's, whereas your car payoff (its used) is very small by comparison. Also, they get your car, if totaled, and sell the body, parts, etc. However, how those liability/repair ratios would work with boats, I do not know.

 

[Sea Horse]

Moved to St Augustine Florida in late August. Ran the boat south and my agent informed me as soon as I got south of Cumberland Ga I would have NO INSURANCE not just hurricane coverage because my policy did not allow me to go south until after hurricane season which ends November 1. After deliberation I decided to go with liability only and take my chances.
Call from agent I needed a hurricane haul out plan to get liability only policy. He said if I left the boat in the water and it broke loose and did damage to other boats they would have to pay out so haul out plan required for liability coverage. Actually make sense. Next dilemma, only three yards in St Augustine that can haul a 52 Hatteras and they all have a hurricane wait list. I would up finally finding a yard about forty miles north and west that could haul me and for the reasonable cost of $500.00 got on the haul out list. Yards south of me in the Ponce Inlet area wanted twice what the insurance premium was to get on their list with one yard telling me up front they charge double to haul and block for a named storm and that didn't include the $1000.00 per year just to insure a space on land for a named storm.
It's really getting very difficult to get insurance on larger older boats. Agent found one company that would issuer me in Florida year round. Premium was three times what I was paying and had a 60% deductible for hurricane damage and 30% deductible for any other claim.
Please let me know if anyone finds coverage in South East for older Hatteras boats. I have not found anything and called around.

 

[Briankinley2004]

W3 has kept me insured. Not always through the same carrier but they seem to come through. A friend of mine with an old 60 in Louisiana uses them and recommended them to me. They seem to know the big old boat market

http://marineins.com

 

[drburke]

In old units of measure (stem to stern), I'm 58 feet long.
That is not the swim platform and bow anchor roller.

I don't think it is a matter or "old" vs "new". The correct data is what your manufacturer says the hull length is, usually LOD and not LOA.

The manufacturers of Sea Rays, Carvers, Bayliners, etc. learned that if the bow pulpit is part of the mold, or the swim platform is molded in, they are technically and legally part of the hull.

Thus they can sell what is essentially a 26' boat with 3' more for bow roller and 3' more for swim platform as a 32' boat to less educated boaters for bragging rights.

So far Chubb is covering me without issues (1984 52C on the West Coast with one loss to my name).

DAN

 

[Captain Ralph]

I don't think it is a matter or "old" vs "new". The correct data is what your manufacturer says, usually LOD and not LOA.

Good point.
But molded in or bolted on, still a sales gimmick when measured as length of boat.

Makes you remember the original Fountain Power Boats.
Worthless needle bow point that added another 2+ feet.