Yacht Insurance

[lumina]

Hi All,

I was recently informed buy my insurance carrier (Zurich) that they will not be writing or renewing any yacht insurance after 12/31.

I did a quick look around but just to be safe purchased a policy from Boat US.

The few other folks I talked to didn't want my business or wanted a full out of the water marine structural & mechanical survey done before they would bind us. I have a survey that fits their requirements from 12/07 but they wouldn't consider it where Boat US would, and I just couldn't see paying
3-5K for another survey.

Are there any other companies out there that you folks might recommend?

74 Hatteras Yachtfish


Gene

 

[bigbill]

try jack martin and associates. they were reasonable on my 1972 58yf, they took a hull survey that was 3 years old, but required an in water survey for the first year. now i have to have a full survey this jan. at hual out

 

[TopHattandTails]

Been happy with Ace so far.

 

[SKYCHENEY]

Why is the survey going to cost so much? Did you shop that price around? An insurance survey should be far less than that.

 

[saltshaker]

I agree with Sky. Shop the survey. You should be able to get an insurance survey for around $15 pr ft. I would think the surveyors would be willing to negotiate since there aren't that many boats being sold. As for Insurance, I and others here use Gowrie Group in CT. They have a marine division and specialize in old Hatts. I've been happy with them and their policies are very comprehensive. http://www.gowrie.com/index.aspx Speak with Dawn Speros.

I'm covered by Travelers and recently had a claim that went very smoothly. You can read a bit about it here http://www.samsmarine.com/forums/showthread.php?t=13591

As for BOAT/US they've never been able to match my coverage at anywhere near my rate. I have heard from others that BOAT/US has been lowering their rates over the last couple of years.

 

[Capt K]

I also use the Gowrie Group and they have me with Middle Oak. I need a full survey this year (first in quite a few years). I have a local guy who just did an in-water and will come back when I haul to view the bottom and running gear. His price is only $17 per foot.

PM me and I can give out his info if requested.

Most companiese are pushing for full surveys on older vessels, especially when changing companies. There's just too many storm damaged boats out there these days.

K

 

[kwerges]

Been happy with Ace so far.

I was also with Zurich, and had to find new insurance this past August. Also went with ACE Insurance and have been pleased. ACE was quite a bit lower than even Zurich was, and when I asked my broker about it, they advised ACE partially bases your premium on your credit rating. Apparently if you have a higher credit rating, you've demonstrated some type of responsibility and as such, are less likely to do something stupid with your boat resulting in a claim. I have no idea if their methodology works, but I'm paying alot less than I did with Zurich for the same coverage...

 

[MikeP]

For our 1980 53 MY I use Gowrie, Barden and Brett and they currently have me with Chubb. Rates just went up a couple hundred dollars/year to 3400 "because of the boat's age." I also received notification that an insurance survey will be required for continued coverage beyond Aug, 2010. Since the boat has to come out of the water anyway for bottom painting next spring, at least I don't have to pay for hauling just for a survey. This was the first time they required this and 2010 will be the 6th year we have owned the boat.

I have to admit that I don't understand boat insurance at all. Car insurance goes DOWN as as vehicle ages but boat insurance goes UP for the same reason. What's up with that?

OTOH, I have been very happy with G,G&B and would recommend them to anyone.

 

[OBXTucker]

You can also try Markel Marine. Just wrote my policy there and they're a pleasure to work with....

PM me for contact information if you're interested.

 

[spindrift]

The underlying carrier on my boat is ACE. They only sell through a broker. I have had very good luck using Jim Weatheral at Atlas Insurance in Newport. Jim is almost 80 and has been in this business for over 50 years. He handled a major claim for my father when his boat fell of the stands back in 1995.

I have a social relationship with the CEO of ACE, as we both went to Brown and he has spoken at conferences that I have organized. We have talked about boat insurance and risk. He has an interesting approach to underwriting as he does indeed look at the credit quality of the insured. It is a reflection, admittedly not the only metric, but this factor does have some correlation with responsibility. The biggest risk for an insurance carrier is one of moral hazard (once the boat is insured you as the boater are tempted not to protect the asset). All of us have seen examples of this such as the guy who does not protect his boat in the event of an approaching storm. I have seen classic examples of people who don't remove or tie down dinghies in the winter, or leave sails wrapped around head stays all winter... etc.

The carriers thus try to assess personal responsibility when pricing. I clearly do not think that having an insurance valuation survey is unreasonable for a carrier to request. Inspection of through-hulls, fuel systems, plumbing etc. is a good idea. We had a situation at my yacht club four years ago when a Hatteras 43 C sunk right at the dock. The loss was caused by a faulty bilge pump fitting. The boat was a total loss.

I agree with Sky that what was quoted to you for a survey is very high. There is a difference in cost between an insurance survey and a purchase survey. Work with a good broker like Atlas and you will be placed with the right carrier. He will also recommend a good surveyor to you who may have a relationship with the company.

By the way, Boat US uses CNA, also a good underlying carrier. They are a bit more by the book on requirements than ACE. I also know the chairman as I taught his two sons. He likes sailing.

Last, Chubb has the reputation of offering the best service in the event of paying claims. This is probably due to one of the former CEOs, Percy Chubb, who was a keen offshore sailor and yachtsman. I have dealt with Chubb on a former house I owned in Florida on the ocean. They tend to be very expensive. However, sometimes you do pay a premium for service and get it.

Best of luck on the process: Spin